Retiring Baby Boomers Create Opportunity for Young Entrepreneurs

According to a study by Canadian Federation of Independent Business, 40% of small business owners plan to leave their companies within five years, and 70% within the next ten years. Three-quarters of those leaving are planning to retire. The potential impact on the economy is tremendous, with some two million Canadian jobs affected over the next five years. Unfortunately, more than 2/3 of these business owners do not have a succession plan in place, and most of those that do are informal and unwritten.

In addition to highlighting the need for succession planning, this also represents an explosive entrepreneurs, either to take over these businesses or to create businesses of their own to fill the void left as these boomer entrepreneurs retire.

So if you're considering buying a business, start getting to know some of these boomer business owners in your local chamber of commerce, networking groups, etc. While it's still a business transaction and both parties should engage in proper due diligence, networking will help you hear about these opportunities first, and many business owners will prefer to sell their business to someone they know and trust. Read more...

Related: Buying a business
Related: Succession Planning