2023 to See More Baby Boomers Retire, Opening Opportunities for Entrepreneurs
This year, more of the baby-boom generation, born between 1946 and 1964, is approaching retirement age. What does this silver tsunami mean for Main Street and the 33.2 million small businesses across the U.S.? This demographic shift has the potential to open new avenues for business ownership. As boomers retire, they leave behind a wealth of experience, knowledge, and opportunities for young entrepreneurs.
As part of BizBuySell’s quarterly Insight Report, we surveyed business owners and brokers, and many respondents anticipate that 2023 will see more boomers looking to sell their business and usher in a new generation of investors. Representing 30.71% of respondents to the survey, baby boomers report that now may be the right time to retire as businesses recover from a challenging 2020. In fact, 45% of business owners say they are selling their business to retire.
A rise in retirement offers a few distinct opportunities. With more small businesses for sale entering the market, there will be many new entrepreneurship possibilities. Business owners can tap into the baby boomer’s discretionary income, too. They have more wealth than other generations, creating a unique customer base for small businesses. Many boomers will be looking for new challenges in retirement. Whether they choose to invest in small businesses or provide mentorship to new (and younger) owners, boomers will be passing on their years of knowledge and expertise to a new generation of business owners.
The Advantages of Buying an Existing Business from Retirees
As many baby boomers look to plan their exit and sell their businesses to enter retirement, savvy entrepreneurs will have an opportunity to purchase a well-established business. There are many advantages to buying an existing business over starting a new one. When you purchase a business, you reduce startup time by acquiring an established brand. You inherit a built-in customer base, and it may be easier to secure financing since lenders can review the existing business’s finances. Entrepreneurs looking to buy a business can tap into all the goodwill that baby boomers have created over a lifetime of building businesses that contribute to the local economy.
Baby Boomers Taking the Time in Retirement to Give Back to Young Entrepreneurs
As the baby boom generation transitions into retirement, they’ll have time and opportunity to give back. This generation is large and influential, and many will continue to be involved in meaningful ways. Boomers looking for challenges and new opportunities to make a difference in their communities can share the knowledge, skills, and connections they made over the years. By providing mentorship and guidance or by investing in new ventures for younger generations of entrepreneurs, boomers have the chance to make their mark in retirement by giving much valued support.
The baby boom generation has accumulated almost double the wealth compared to younger generations X, millennials, and Z. With more time and disposable income available, young entrepreneurs can tap into this demographic with businesses and services that cater to their needs. As retirees take time to relax, travel, and enjoy time with families, they will continue to support small business owners as an active customer base.
Retiring baby boomers present a wealth of opportunities for young entrepreneurs. By purchasing existing businesses and tapping into their experience, business owners can set themselves up for success in the small business world.