The current estimate of Baby Boomers (currently ages 56 to 74) in the U.S. is approximately 72 million. Many U.S. businesses are owned by baby boomers which means there will be many businesses available for new owners to take over.
What are some of the benefits of purchasing an existing business versus starting one?
1. Proven Business Model - various studies show that 80% of new businesses fail within five years.
2. Existing Brand - building a brand name and recognition can require significant resources and time.
3. Existing Relationships - established customer base and vendor relationships are already established.
4. Narrow Focus - new owner can focus on growing and improving the business from the current foundation.
5. Experienced People - proven employees are invaluable; eliminates need for hiring and training.
6. Revenue and Cash Flow - start-ups can be cash-starved for first few years.
7. Reduction in Risk - lenders will be more willing to provide financing with proven model.
Baby boomers will be retiring and good businesses will be available. It may be prudent to acquire a business rather than starting one from the ground floor.
LINK to the full article by Bernhard Schroeder.
Steve Niehaus, MBA, CBI
[email protected]
239.565.3171
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Mon, May 11, 2020Share Article
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Entrepreneurs, It’s A Perfect Storm—The Seven Benefits Of Buying An Existing Business From A Retiring Baby Boomer
