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Taking over business from retiring baby boomers

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Bekit

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Get ready, millennials. It looks like a bunch of baby boomer businesses are about to be up for grabs.

I say this with deep regret. It didn't have to be this way. I would have much rather entered into a scenario where there was time, mentorship, and a relationship built with the retiring business owner.

Now, it looks as if we might be thrown into the deep end of the pool to recreate many of the businesses that close due to bankruptcy or death of the owners.

Is this generation ready to take up that mantle?

Seemingly not.

But the people here on the forum are at least poised with an excellent mindset and good grasp on fundamentals.

There has never been a more wide-open opportunity to provide value.
 

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mon_fi

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Simple yet effective, this idea is golden!
 

Walter Hay

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Glad I found this thread. I'm in the process of redoing my existing LLC to prepare myself for this... mainly on a smaller scale to start, then working my way up.


To the fast lane...
Don't forget that if you are buying an existing business that is not an online one, you can scale it rapidly by setting it up as a franchise system.

You will need to make it very profitable to attract franchisees, and you will need to keep a good record of the systems you use so that you can prepare the essential Operations Manual.

For more information, see
Starting a business with the intention of selling franchises.
and Rapid Scaling a business by franchising

Walter
 

MrTrash757

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Don't forget that if you are buying an existing business that is not an online one, you can scale it rapidly by setting it up as a franchise system.

You will need to make it very profitable to attract franchisees, and you will need to keep a good record of the systems you use so that you can prepare the essential Operations Manual.

For more information, see
Starting a business with the intention of selling franchises.
and Rapid Scaling a business by franchising

Walter
Oh yes 100% agree. Thanks for the links too, I’ll check em out!
 

Hadiatou BARRY

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Jun 28, 2020
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In Singapore here there are a lot of profitable small business in the traditional industries. They are owned by baby boomers who cannot find successors. Their children are not interested in the business.

I believe that this applies in U.S. as well.

These business typical generates 10-20k monthly profit on average with moderate efforts in management. These are the business that are too small to be interesting to be sold to private equity/professional business investors but it is too big a money to be thrown away for retirement since it has a steady customer base and a reputation built over decades.

I was speaking it from some personal experience because I was being pitched to run a company selling boat engines. The owner has a common friend with my parents. They don’t even know me or my parents. I did not take it because I cant imagine myself selling boat engines.

I have another high school friend who took over his family business and quit his slow lane job. He felt obliged to take over because no sibling of his is interested. It is a raw material provider for construction and engineering companies. Gross margin is around 5 percent. Could make 200k-500k a year depending on the business environment. He is very optimistic on the business. “Within the next 2 years 30 business of my competitors are closing their shops because they have no successor. It is an old men’s business and I am the only 30 years old here”.

I am in a self-employed financial sales role. As of now I am working with a baby boomer who is passing his clients base to me. This is a common scenario for real estate agents/insurance agents/stoke brokers.

I see a huge opportunity for young people to network with such baby boomers to work out a collaboration plan. There are two strong reasons for doing so.

1) It makes your life a lot easier compared to yourself starting from scratch. A hell lot easier.

2) You do not to be excellent. You just need to be not lazy, stupid or unreliable. Most people here can do it

3) A lot of other young people are not interested. They rather do drop-shipping or MLM. That is crazy. This makes the successorship deal bargain in a market situation very favorable to young people looking to take over a business. The current market dynamic here is actually the old people who are actively hunting for young people to take over their business.
 

Hadiatou BARRY

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Jun 28, 2020
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France
In Singapore here there are a lot of profitable small business in the traditional industries. They are owned by baby boomers who cannot find successors. Their children are not interested in the business.

I believe that this applies in U.S. as well.

These business typical generates 10-20k monthly profit on average with moderate efforts in management. These are the business that are too small to be interesting to be sold to private equity/professional business investors but it is too big a money to be thrown away for retirement since it has a steady customer base and a reputation built over decades.

I was speaking it from some personal experience because I was being pitched to run a company selling boat engines. The owner has a common friend with my parents. They don’t even know me or my parents. I did not take it because I cant imagine myself selling boat engines.

I have another high school friend who took over his family business and quit his slow lane job. He felt obliged to take over because no sibling of his is interested. It is a raw material provider for construction and engineering companies. Gross margin is around 5 percent. Could make 200k-500k a year depending on the business environment. He is very optimistic on the business. “Within the next 2 years 30 business of my competitors are closing their shops because they have no successor. It is an old men’s business and I am the only 30 years old here”.

Je suis dans un rôle de vendeur financier indépendant. Je travaille actuellement avec un baby-boomer qui me transmet sa clientèle. Il s'agit d'un scénario courant pour les agents immobiliers / agents d'assurance / courtiers Stoke.

Je vois une énorme opportunité pour les jeunes de réseauter avec ces baby-boomers pour élaborer un plan de collaboration. Il y a deux bonnes raisons à cela.

1) Cela vous facilite la vie par rapport à vous-même en partant de zéro. C'est beaucoup plus facile.

2) Vous ne devez pas être excellent. Vous devez juste être pas paresseux, stupide ou peu fiable. La plupart des gens ici peuvent le faire

3) Beaucoup d'autres jeunes ne sont pas intéressés. Ils préfèrent faire du drop-shipping ou du MLM. C'est fou. Cela fait de la succession une affaire de marché très favorable aux jeunes qui souhaitent reprendre une entreprise. La dynamique actuelle du marché est en fait les personnes âgées qui recherchent activement des jeunes pour reprendre leur entreprise.
[/CITATION]

Cette idée est super intéressante
En effet moi j'ai essayé le dropshipping, Amazon FB mais rien ne fonctionne vraiment
Je vais m'y intéresser de plus près.
Mais je vis en France, la loi sur la succession est très rude je ne pense pas pouvoir trouver quelque chose ici.
Je voulais juste savoir au USA par exemple quelles sont les conditions pour profiter décemment système ??
Merci
 

JunkBoxJoey_JBJ

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...partnered with a older contractor that just couldn't get it over the line. He was very knowledgeable and hands on, but lacked the people skills, digital skills and business skills. I provided the business side and he made sure we delivered on the project. I got half the new company, and he got his investment bought out by the new company from the profits of the new...
@Rwill ...would you be willing to share any feedback on the "how" you did this or how it was structured? i.e Did you use a business broker(s), an old school "handshake" or an attorney?

*FOR OTHERS SEEKING SOME HELP ON THIS TOPIC:

Seek this out...
BiggerPockets Business Podcast 51: Business Opportunity Is Knocking… Answer the Door! With Nigel Guisinger
 
Last edited:

Rossoneri

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@Rwill ...would you be willing to share any feedback on the "how" you did this or how it was structured? i.e Did you use a business broker(s), an old school "handshake" or an attorney?

*FOR OTHERS SEEKING SOME HELP ON THIS TOPIC:

Seek this out...
BiggerPockets Business Podcast 51: Business Opportunity Is Knocking… Answer the Door! With Nigel Guisinger
I'm also interested in this, being a young person excited about 'boring' businesses. Any help on how these are structured?
 

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