Do you realize a major wealth transition is happening right now?
TLDRA significant wealth transition is currently underway, with approximately $1 trillion in small businesses expected to change hands over the next decade. The average small business owner in the US is now over 50 years old and ready to retire, yet many younger generations are not interested in taking over their parents' businesses. This presents a unique opportunity for individuals to purchase these businesses, potentially through creative financing arrangements, and become part of the small business ownership that accounts for 60% of all millionaires.
Takeaways
- 🚀 A major wealth transition is currently underway, with many small businesses changing hands.
- 🏪 Main Street businesses are the backbone of local economies and represent a significant opportunity for individuals.
- 💼 Over the next decade, approximately $1 trillion in small businesses will be transferred, including laundromats, retail stores, and farmland.
- 👴 The average small business owner in the US is now over 50 years old and many are ready to retire.
- 👨👧👦 Few children are interested in taking over their parents' businesses, leading to a growing number of businesses being sold.
- 🏢 Small businesses are often better off being bought by everyday people rather than being acquired by large corporations or investment firms.
- 💼 Private equity firms are increasingly buying up small businesses, which can lead to negative changes for communities.
- 💼 There are various creative ways to finance the purchase of a small business, including long-term payment plans and seller financing.
- 🏡 Local businesses are often willing to work directly with potential buyers, even if they haven't officially listed their business for sale.
- 💼 The current demographic shift presents a unique opportunity for Millennials and Gen Z to become business owners and bridge the wealth gap.
- 💰 Owning a business is a proven path to wealth, with 60% of all millionaires being business owners.
Q & A
What is described as happening right now in the country's history?
-One of the biggest wealth transfers in the country's history is happening right now, with many small businesses changing hands.
Why are these Main Street businesses up for grabs?
-These businesses are up for grabs because the average small business owner in the US is now over 50 years old and many are ready to retire.
How much wealth is expected to change hands over the next 10 years?
-About 1 trillion dollars in small businesses are expected to change hands over the next 10 years.
Why is it better for everyday people to buy these businesses rather than large corporations?
-It's better for everyday people to buy these businesses to prevent them from being swallowed up by large corporations or investment firms, which can lead to changes that aren't great for the community.
What is the average age of small business owners in the US?
-The average age of small business owners in the US is now over 50 years old.
What percentage of small businesses are currently owned by private equity firms?
-Private equity firms used to own 4% of small businesses, but now they own 20%.
What are some of the ways small businesses can be purchased?
-Small businesses can be purchased through long-term payment plans, seller financing, leasing, or creative arrangements like SBA or third-party financing.
What is the significance of the demographic shift between Baby Boomers and Millennials/Gen Z?
-The demographic shift is significant because Baby Boomers need to exit and sell their businesses, while Millennials and Gen Z are looking for opportunities and are not satisfied with their current wage growth and job situations.
What is the percentage of millionaires who are business owners?
-60% of all millionaires are business owners.
What percentage of Americans currently own a business?
-Only 6% of Americans currently own a business.
What is the advice given for those interested in owning a business?
-The advice is to get out there and start looking at local businesses, as the wealth transfer is happening today and with a little effort, one could be on their way to owning their own business.
Outlines
💼 Wealth Transfer Opportunity in Small Businesses
The speaker discusses a significant wealth transfer occurring in the country, where small businesses are being sold as their aging owners retire. These businesses, which are crucial to local economies, present a vast opportunity for individuals to step in and purchase them. The average small business owner is now 50 years old, and many are ready to pass on their businesses. While some may pass down to their children, a growing number of younger generations are not interested in taking over their parents' businesses. The speaker argues that it's better for everyday people to buy these businesses rather than having them be acquired by large corporations or investment firms. The speaker also shares that many business owners are open to creative arrangements, such as long-term payment plans or seller financing, making it more accessible for individuals to become business owners.
🚀 The Path to Millionaire Status Through Small Business Ownership
The speaker emphasizes the importance of small business ownership as a path to wealth, noting that 60% of all millionaires are business owners. However, only 6% of Americans currently own a business, creating a significant gap. The speaker encourages people to consider buying local businesses, such as laundromats or grocery stores, which may be looking for new owners. The speaker suggests that this is a more beneficial approach than starting a new business from scratch or engaging in speculative ventures. By purchasing existing small businesses, individuals can contribute to filling the wealth gap and potentially become part of the millionaire demographic. The speaker also touches on the idea of an apprenticeship between generations, where younger individuals can learn the business and eventually take it over, providing a retirement solution for the current business owners.
Mindmap
Keywords
Wealth Transition
Main Street Businesses
Demographics
Private Equity
Seller Financing
On and Off-Market Deals
SBA Financing
Millennials and Gen Z
Inflation
Apprenticeship
Business Ownership
Highlights
A major wealth transition is currently underway in the country's history.
Main Street businesses are the backbone of local economies and are up for grabs.
The opportunity presents itself for individuals to buy these businesses.
Over the next 10 years, about 1 trillion in small businesses will change hands.
The average small business owner in the US is now over 50 years old and ready to retire.
Many small business owners' children are not interested in taking over the business.
Private Equity firms are buying up small businesses at an increasing rate.
It's better for everyday people to buy these businesses than for them to be swallowed by large corporations.
Small business owners are often looking for someone local and trustworthy to take over their business.
Many business owners are not tech-savvy and may not list their businesses online.
Creative financing options like long-term payment plans or seller financing are common.
SBA or third-party financing can be used to purchase a business.
Small business owners may be open to selling their business without even having it listed for sale.
Millennials and Gen Z are not typically interested in the traditional path of their parents.
An apprenticeship model could be a solution where younger generations learn the business and take it over.
60% of all millionaires are business owners, indicating the potential wealth in owning a business.
Only 6% of Americans own a business, indicating a significant gap in wealth opportunity.
The fastest way to become a millionaire is often through small business ownership.
Encouragement to visit local businesses and speak with owners about potential opportunities.