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Good morning Launch Key 🚀 community! |
Boomer businesses are for sale and as the kids say, the math ain't mathin. |
64% of all small businesses on the planet, are owned by people over 55. And there simply aren't enough buyers. |
It's been 6 months since we covered the topic of Buy vs. Build. |
Let's dive back into it. |
Comment below and let me know if we're on the right track. |
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Table of Contents |
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Pull to Eject |
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You can't ignore facts: the current business cycle is challenging. |
Everything is more expensive. There's an unprecedented labor shortage. And regulatory overreach is stifling … and growing.
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Entrepreneurs need to survive both good times and hard times. |
"Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times." | | | | G. Michael Hopf, Those Who Remain |
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Know where we are in the cycle. |
But hard times don't last forever. And sometimes the best opportunities are found during hard times. |
Buying a Boomer business might be just that ticket today. |
These businesses are often rooted in a local community: hardware stores, laundry mats, auto shops, restaurants, electrical or plumbing businesses, and local retail. |
Typically well-established – an existing business also has knowledgeable staff, intellectual property and a solid customer base. |
Foundational business stability that can turn an acquisition into the possibility of generational wealth. |
 | Boomer small business owners retiring could mean golden opportunity for younger Americans | Data shows millions of baby boomer small business owners are poised for retirement in coming years, and that means enormous potential for younger generations of aspiring entrepreneurs. |
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Resources for Buyers |
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The Silver Tsunami is not just about managing the healthcare of an aging population. |
Millions of small businesses need next generation leaders. And the majority don't have a succession plan. Consultants have risen to the challenge. |
Cody Sanchez is one of the pioneers. |
She has been buying local businesses since 2012 and found her niche helping others do the same. She is on a "mission to help 1 million people become financially and philosophically free." |
Her Contrarian Thinking newsletter has over 700,000 subscribers and she's publishing a book. |
 | Codie Sanchez | Codie Sanchez is an investor for the industry outsiders. Investing and building companies in venture, private equity, ETFs and with a focus on bringing outsiders, Latinos, minorities and unconventional thinkers into financial freedom. |
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Outsiders see things differently. |
New blood in a small business ignites potential innovation. From experience to contacts to modern software ideas, a new owner is more likely to mix things up and reinvigorate an established business. |
In many cases, the innovation bar is low. |
This AFP (Association for Financial Professionals) article is a little dated, but at survey time, 86% of companies were still paying bills with paper checks. |
And the government actually has a solution that helps. |
It's now possible to buy a portion of a business using SBA loans. This gives buyers the option to put down less, and the potential to keep intellectual property of owners who are willing to reduce their stake on a path to retirement. |
 | The SBA says they also hope this change helps to bring more buyers to the table to help keep more small business alive, especially in rural America where a retirement can sometimes mean the closure of the community's only hardware or grocery store. |
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Based on emailed comments from the Pig in a Python issue, I created a buyer resources PDF complete with research and links to help you Buy then Scale. |
 | Buy then Scale: business buyer resources | The Small Business Administration (SBA) estimates that around 10 million baby boomer-owned businesses will change hands before 2029. This PDF includes background material, market research links (page 8) and half a dozen web sites selling existing businesses (page 7). |
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There are no participation trophies for wantrepreneurs. |
What's for sale in your town? |
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Now go launch something 🚀 |
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| ❝ | | | Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great." | | | | Mark Twain |
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| MGMT Playbook Practical management insights straight to your inbox every Wednesday. | | Subscribe |
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Modern Tools |
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Are you interested in finding an existing online business? |
Empire Flippers has helped sell more than $450 million of those. |
They have global listings and have a solid reputation on both sides of an acquisition. They've won International Business Brokers Association as well as multiple Inc. 5000 Fastest-Growing Companies awards. |
 | Buy and Sell Online Businesses & Websites - Empire Flippers | Buy and sell online businesses and websites that have been thoroughly vetted on the largest curated marketplace at Empire Flippers. |
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Old School Wisdom |
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There's timeless knowledge in this little paperback. |
Real life examples taken from 50 years of interviews with Fortune 500 leaders like Jack Welch, John Reed and Jacques Nasser. |
There is no such thing as a mature business when you create a culture of change. |
 | Every Business Is a Growth Business: How Your Company Can Prosper Year After Year: Ram Charan, Noel Tichy | Every Business Is a Growth Business: How Your Company Can Prosper Year After Year. Your one-stop guide to making profitable growth happen. |
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Free Knowledge |
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Two examples of newsletters that share insight and example listings of small and medium businesses for sale. |
Helen Guo adds YouTube interviews for case study details of successful acquisitions. |
 | Acquisition Alert | Twice a week, we offer insights into niche, underappreciated industries, along with breakdowns and contact information for five of the best SMB deals on the market. |
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 | SMB Deal Hunter by Helen Guo | Learn how to buy established businesses that are already profitable (from someone doing it for a living). 📧 Check out my newsletter SMB Deal Hunter and join 80,000+ learning for FREE through live deals |
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Learn from investing legends. |
Warren Buffett reads for 8 hours a day. What if you only have 5 minutes a day? Then, read Value Investor Daily. We scour the portfolios of top value investors and bring you all their best ideas. |
Subscribe with one click. |
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