Did you know that baby boomers account for 40% of small business and franchise ownership in the United States? 35% of these businesses have been in operation for over ten years and in that time have built up a loyal customer base. Boomer-owned businesses employ 25 million people, and tens of millions more are dependent on these businesses’ existence and success. Baby boomer owned businesses are a crucial component of the American economy, but there has been a turning point in recent years.
Baby boomers are now reaching the point where they are looking to retire. Many of these small business owners do not have a transition or succession plan in place, most stating the reason is simply because they enjoy running their company. When it comes time for baby boomers to retire though, many are forced to sell their businesses, which can be difficult. Small businesses are often too small to be on the radar for private equity funds and owners are often hesitant to sell unless they know the person taking over will continue running their business smoothly. Luckily, there has beena a shift in recent years that has left more of the younger generation looking to take over these businesses.
Millennials are increasingly leaving their corporate jobs and becoming their own bosses. Starting a brand new business can be a daunting task, and so many millennials are buying already established businesses that baby boomers are looking to sell. The already existing success of a business due to loyal customers is a huge plus for aspiring new owners, and with millennials’ use of social media there is room for even more success. After taking over a new business, millennials can utilize social media more so than baby boomers to market and advertise their business.
The transition from baby boomers to millennial small business owners can be made much easier with the use of social media marketing and advertising. Using these tools along with an already established customer base can ensure that these long standing businesses will continue to remain profitable and important pillars of the American economy.