A new generation of eager, young entrepreneurs are looking to plant their flags in the market, and thanks to an approaching transfer of business ownership, business will be booming. As baby boomers retire, they are looking to sell their businesses to establish a livable nest egg, but what does this mean for buyer prospects?
According to a California Association of Business Brokers report, baby boomers are set to sell almost 12 million businesses in the next decade. This means over $10 trillion in assets will change hands to young professionals in the next couple of years. This handoff is already underway and is fanning the flames of a newly hot business-for-sale market.
Don’t overlook existing businesses as an entrepreneurial starting point
The Silicon Valley rags-to-riches narratives make for good Hollywood storylines, but this model isn’t the only way to enter business ownership. With so many business owners on the brink of retirement, and with a huge surge of sales forthcoming, buyers should take note that the market scale is about to tip drastically in their favor. In fact, acquiring an existing business comes with many perks for young entrepreneurs looking to get their start. Some of these perks include the following:
- Minimal upfront costs. You’re not just purchasing the business. You also buy the brand, customer-base, management policies and other invaluable existing factors.
- Low risk. Any business worth buying has likely proven it provides a healthy return on investment. With most of the necessary business foundations in place, there will be very little groundwork to be done.
- Established cash flow. An existing business will probably already have steady cash flow, which eliminates the scramble of starting from scratch. It’s likely there will already be equipment and employees available, so there will be no lapse in revenue when jumping in.
With these perks in mind, buying an existing Read More Here