Baby Boomers have always had a profound impact on America’s economy, so it’s no wonder that as they enter the retirement years they’re causing another shakeup. According to Business Insider, the aging Baby Boomers combined with historically lower fertility rates mean that by 2030, 20% of the population will be 65 and older.
First off, this will undoubtedly result in longer lines for the Sunday brunch at your local buffet restaurants. But it will also bring unpleasant effects to the economy. The chief reason is that in retirement, spending decreases by about 37% percent. So when an abnormally large segment of your population is retired and 70% of your country’s economic activity is based on consumption, there will be repercussions.
Aside from the economic outlook, another crucial issue is what will happen to all the businesses currently owned by Baby Boomers. After all, Forbes reports that millions of Baby Boomers will sell or close their businesses over the next ten years. And 72% of them lack a succession plan.
So what’s going to happen to those millions of businesses?
Research reveals that many Baby Boomers aren’t quite ready to hand over the reigns. Instead, they’re keeping their businesses because they enjoy the work and don’t want to deal with the boredom of retirement. Also, they worry about what might happen to their employees if they leave.
A smaller, but significant, portion of Baby Boomers say they’re not in a financial position to stop working. These folks tend to feel “trapped,” suggesting that they’d prefer to retire if they were able to. While they’re compelled to continue working for financial reasons, the Baby Boomers who opt to stay with their business typically find the work enjoyable because they deal with less of the day-to-day grind and focus on more rewarding activities like mentoring.
Despite the fact that many Baby Boomers are delaying retirement, there are still millions of businesses that will be available for purchase in the coming decade. If you’re looking to buy a business, Forbes recommends that you find a business that matches your skills and interests. A great place to start the search is your local Chamber of Commerce. The entrepreneurial network they offer, as well as actual business brokers, can make the discovery and purchasing phases much easier.
Other ways to find businesses on sale include local bankers in your community, real estate brokers, eBay, or Craigslist. And when all else fails, try going directly to business owners in your network and getting an idea about their future plans. Who knows? Perhaps your questions will help them formulate a succession plan where one didn’t exist before.