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Millions of boomer small business owners will soon retire. Will their companies just disappear? | Gene Marks

1 day ago
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Want to buy my business? It’s been very profitable.I’ve run it for more than 25 years.But no, you don’t want to buy it.Like most small businesses in this country, there’s really nothing of value here.According to the Small Business Administration, there are approximately 33m small businesses in the US.

But fewer than 7m actually employ people.The rest comprise freelancers, side gigs and independent contractors.I’m sure many of these people are making a living.But are they building assets? A brand? Probably not.If that “business owner” suddenly disappears, their business disappears with them.

No one wants to buy a business like that.There’s no value.My company is no different.Like so many other business owners, I’m a micromanager and a control freak.My company has a few employees but in reality I’m nothing more than a glorified independent contractor.

The business is built around me.If I get hit by a bus, my company crumbles into nothing.No one wants that.We live in a service-based economy, which according to federal data accounts for as much as 77% of US GDP.My business is part of that.

I bill for hours incurred.I manage a handful of open projects at any given time.I’m constantly scrambling for more work.There’s no commitment.There’s no requirement to use us.

Unlike big tech companies, my clients are not bound to any contract.And even if they were, there would be little benefit to me – enforcing contracts is too expensive and time-consuming for a company my size.A buyer of my company would not be buying any customers – they’re free to go wherever they want.There’s no value in that.Being a service business, I have no hard assets to sell.

My inventory is hours.There are no products on shelves.No machinery or equipment.No buildings or properties or furniture or fixtures.And, thanks to the pandemic, there’s no office.

All of my employees are remote.Our “corporate headquarters” is literally a post office box.Our phone system is virtual.Our software and data is in the cloud somewhere.It all makes for a lean, efficient organization.

But it’s a house of cards.A just-published report by McKinsey says that there will be a “great ownership transfer” over the next 10 years when baby boomers who run as many as 6m small and midsize American businesses retire.UBS’s 2026 Global Entrepreneur Report has found that nearly a third of global entrepreneurs are actively considering exiting their businesses within the next five years.For those aged 65 and over, this figure surges to 57%.Sounds great.

But if you’re one of those business owners – and you run a service business like mine – I wouldn’t get your hopes up for a big payday,McKinsey warns that “without intentional action, many viable small businesses may close rather than transfer ownership”,It’s probably true,Can this be remedied? The clock is ticking,And there are only a few options.

A business owner could hand down the business to their kids,But this only works for people with kids who are actually interested in doing the work,For some, this is a viable succession strategy,A younger generation could breathe more life into the business,This worked for me.

My dad and I were the only two involved in my business until he unexpectedly passed away back in 2005, which left me no choice but to take things over and grow it.I added employees and products and, with good fortune, was able to grow profits significantly beyond what the two of us were making.Many owners could do the same and provide an ongoing income stream for mom and dad.Or the kids could run it into the ground.Instead, some older business owners may want to build an actual business with value.

This would involve changing their billing models.Enforcing contracts.Buying property.Creating processes.Building infrastructure.

Hiring a great management team.Creating a sustainable brand.Sounds great, but there’s a problem with this approach: it’s exhausting.Ask any person over the age of 60 to do this and they’ll be like: Who has the energy? That’s a younger person’s game! And they’re not wrong.After spending 40-plus years in the business world, I understand why most people my age just want to play golf, relax and spend time with their grandkids.

There is one other good option for a service business owner: build cash.I’ve been pulling profits out of my company all of this time and doing my best to save.I’ve bought life insurance.I’ve put everything in a trust to protect against liabilities and potential estate taxes.I know that my business won’t be providing me with retirement income.

But my savings will.All of this presents a great opportunity for younger entrepreneurs.Why start a business from scratch when all of these business owners are looking to sell? Why not instead partner or purchase from an older business owner, keep them on as a mentor, take over their operations, assume their customers, leverage what employees, contractors and relationships they have, and then make your improvements? Instead of nothing, you’ve at least got a head start.
sportSee all
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County season arrives with fresh hope of domestic displays paving path to international stage

Not everyone is optimistic it will be the case, but players should start the season believing performances will be noticed by the England setupPeter Moores could be forgiven for raising an eyebrow at England’s backing for Brendon McCullum after four years as head coach and that bleak Australian winter. Moores was afforded barely three during his two spells in the job, neither of which included an Ashes series.But as his Nottinghamshire side begin the defence of their County Championship title away at Somerset on Friday, Moores is keen to look forwards. During his Ashes mea culpa, the England team director, Rob Key, said he wanted better communication with the counties on selection, music to the ears of the leading domestic coach.“If I was a county player, I’d be more excited about starting this season than the one before,” says Moores, whose captain, Haseeb Hameed, should be among those aiming to state their case

about 8 hours ago
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‘Worst case I get to ride a lot’: Lael Wilcox on her quest to become the fastest human to cycle round the world

After setting the women’s around-the-world record two years ago, the Alaskan is aiming for a new mark with her next 18,000 mile journeyOn 11 September 2024, Lael Wilcox returned to Chicago after 108 days in the saddle, smashing the women’s around-the-world cycling record by more than two weeks. The extraordinary feat had taken her 18,000 miles over remote mountains and across 22 countries. But it left Wilcox with a lingering question: could she break Mark Beaumont’s outright record of 78 days and 14 hours?Shaving 30 days off her time would require a major pivot in philosophy from adventure riding to pure racing, with an emphasis on efficiency, aerodynamics, and rigorous planning. Motivated to prove that women can compete with men in ultra-cycling, Wilcox will start her second attempt on 7 June in Chicago.Wilcox, who was born and raised in Anchorage, Alaska, is no stranger to beating men in high profile races

about 9 hours ago
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Mercedes’ Wolff says Antonelli and Russell are ‘off the leash’ to race … for now

Kimi Antonelli and George Russell, leaders of the Formula One world championship in a dominant Mercedes car, are “absolutely off the leash” to race one another, their team principal, Toto Wolff, has said. Antonelli won the Japanese Grand Prix on Sunday, the 19-year-old’s second victory on the trot and with Russell managing only fourth, the Italian leads his teammate by nine points.Wolff insisted there was no plan to use team orders between them unless it becomes necessary later on. “We’re three races in, the car is good so we need to continue to do our job and give them a tool that they can continue to win or fight for the positions,” he said.“Towards the end of the season we’re going to see how the points fall and whether anything needs to be done

about 9 hours ago
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Landmark changes to insurance cover for female athletes to be implemented

Female athletes are to benefit from a major breakthrough in insurance cover for pregnancy, contraception, menopause and other health conditions, as part of the implementation of recommendations in the Carney review.The Women’s Football Taskforce ­commissioned Loughborough University – announced recently as the world’s No 1 ­university for sports-related subjects for a 10th consecutive year – to work with ­leading ­insurance providers and brokers to ensure female athletes are offered appropriate support in their ­insurance coverage.The changes to insurance provisions for female athletes will address specifically the blind spots that exist in regards to pregnancy, ­contraception, menopause, health conditions and conditions that dispropor­tionately affect women, such as relative energy ­deficiency in sport (Red-S).Red-S is a complex syndrome caused by low energy availability, where an athlete’s food intake does not meet the demands of training. This can lead to metabolic, ­hormonal and phy­siological changes, with common indicators including stress fractures and disruptions to the ­menstrual cycle

about 11 hours ago
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Leeds and Warrington thriller is fitting gift on Super League’s 30th birthday

It began with an explosion of noise and a wave of excitement on the fringes of Paris in 1996, and as Super League celebrated its 30th anniversary weekend in the slightly more rugby league-centric surroundings of Leeds on Sunday, it felt an appropriate time not only to look back, but forwards, too.Amid all of the missed opportunities – more on those later – and boardroom frustration that have often dominated the past 30 years in the competition since its seismic switch from winter rugby to summer, one thing Super League has almost always managed to count upon as a consistent force is the entertainment on the field.That was emphasised on Sunday at Headingley, one of the competition’s renowned amphitheatres, when Leeds Rhinos and Warrington Wolves served up a thrilling birthday present with a contender for the standout game of 2026 so far. It was Leeds who edged it, 26-22, just as they have so many times in the past three decades, but both will fancy their chances of silverware this year.Perhaps in a way it was fitting that it was two heartlands clubs who were around in 1996 that were the teams who took to the field on this significant anniversary

about 11 hours ago
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Andrew Bogut accused of body-shaming 36ers owner during NBL championship series

The Adelaide 36ers have lodged a formal complaint with the NBL over body-shaming comments allegedly made by Sydney Kings co-owner and assistant coach Andrew Bogut.In another twist to the bitter ongoing championship series, the Sixers on Monday accused former NBA player Bogut of making “persistent and repeated personal attacks” towards 36ers owner Grant Kelley.Reports emerged over the weekend that Bogut and Kelley had a heated exchange after Adelaide’s defeat of the Kings in game two of the championship series. Kelley claimed Bogut made comments about his weight in the tunnel, which Bogut later disputed.“Let’s just say I’m the size of Akebono the sumo wrestler, that’s my journey, that’s my issue,” Kelley told Code Sports on Sunday

about 11 hours ago
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‘They feel true’: political deepfakes are growing in influence – even if people know they aren’t real

2 days ago
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Sony to hike PS5 prices by $100 as AI and Iran war push up memory chip costs

3 days ago
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Wikipedia bans AI-generated content in its online encyclopedia

3 days ago
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Number of AI chatbots ignoring human instructions increasing, study says

3 days ago
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‘Accountability has arrived’: dual US court losses show shifting tide against Meta and co

4 days ago
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New York City hospitals drop Palantir as controversial AI firm expands in UK

4 days ago