60% of Millionaires Own a Business… Here’s The Best Business To Buy Too

Codie Sanchez
25 Oct 202405:50

TLDRThe speaker discusses a significant wealth transfer happening as small business owners, many over 50 years old, retire and look to sell. With about $1 trillion in small businesses set to change hands in the next decade, the opportunity is vast. The speaker encourages everyday people to consider buying these businesses, which are often more willing to sell to locals than to large corporations. Various creative financing options are available, and the speaker suggests visiting local businesses to explore potential deals, highlighting the importance of this wealth transfer for building personal wealth and community strength.

Takeaways

  • 💼 One of the largest wealth transfers in US history is currently underway, with many small businesses up for sale.
  • 🏪 Main Street businesses are the backbone of local economies and present a significant opportunity for individuals to acquire wealth.
  • 💰 Over the next decade, approximately $1 trillion in small businesses will change hands, including laundromats, retail stores, farmland, and manufacturing businesses.
  • 👴 The average small business owner in the US is now over 50 years old, and many are ready to retire, leading to a surge in businesses for sale.
  • 👨‍👧‍👦 Few children are interested in taking over their parents' businesses, leading to a growing number of businesses being sold.
  • 🤝 It's better for everyday people to buy these businesses rather than having them swallowed up by large corporations or investment firms.
  • 💼 Small business owners often prefer selling to local individuals rather than private equity firms, which are increasingly buying up Main Street businesses.
  • 💸 Many business owners are not tech-savvy and may not list their businesses online, presenting opportunities for local buyers to step in.
  • 📝 Creative financing options like long-term payment plans, seller financing, and leases are common in small business transactions.
  • 🚀 Now is the perfect time to explore owning a business, with many small business owners open to selling and a wealth transfer happening today.
  • 💰 60% of all millionaires are business owners, highlighting the potential for wealth creation through small business ownership.

Q & A

  • What is one of the biggest wealth transfers happening right now?

    -One of the biggest wealth transfers happening right now is the change of ownership of Main Street businesses, as many small business owners are reaching retirement age and looking to sell.

  • What is the estimated value of small businesses expected to change hands in the next 10 years?

    -About 1 trillion dollars in small businesses are expected to change hands in the next 10 years.

  • Why are many small business owners looking to retire and sell their businesses?

    -The average small business owner in the US is now over 50 years old, and they are tired after spending their lives building these companies. They are now ready to retire and pass on their businesses.

  • Why is it better for everyday people to buy these businesses instead of 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 demographic trend that is causing many small businesses to be sold?

    -The demographic trend causing many small businesses to be sold is that the current owners are aging and ready to retire, while younger generations are not interested in taking over the family business.

  • How can someone find businesses for sale in their area?

    -Someone can find businesses for sale in their area by visiting business buying sites that have listings, or by visiting local shops and speaking with the owners to see if they are open to selling.

  • What are some of the creative arrangements that can be made when buying a business?

    -Creative arrangements can include long-term payment plans, seller financing, leasing the business, or using SBA or third-party financing. Some deals might also involve putting a small down payment and financing the rest.

  • Why might a small business owner be willing to sell to someone without experience?

    -A small business owner might be willing to sell to someone without experience because they are looking for someone local and trustworthy who can step in and offer a solution, rather than having their business bought by a large corporation.

  • What is the percentage of millionaires who are business owners?

    -Sixty percent of all millionaires are business owners, highlighting the potential wealth that can be generated through owning a business.

  • Why is it important for everyday people to consider buying a small business?

    -It's important for everyday people to consider buying a small business because it can help fill the gap between the small percentage of Americans who own businesses and the large percentage of millionaires who are business owners.

Outlines

00:00

💼 Wealth Transfer and Small Business Opportunities

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, are often not listed online but are available for those willing to approach owners directly. The speaker emphasizes that it's better for everyday people to buy these businesses rather than let them be acquired by large corporations. They mention various ways to finance such purchases, including long-term payment plans, seller financing, and creative arrangements like SBA loans. The speaker encourages listeners to explore these opportunities and consider buying a business to participate in this wealth transfer.

05:01

💼 The Importance of Small Business Ownership

The speaker highlights the importance of small business ownership as a path to wealth, noting that 60% of all millionaires are business owners. They express concern that only 6% of Americans own businesses, creating a gap that needs to be filled. The speaker suggests that buying small businesses on Main Street is a way to bridge this gap. They encourage listeners to visit local businesses like laundromats, dry cleaners, and grocery stores, as these owners might be looking for someone to take over their business. The speaker also touches on the potential for an apprenticeship model where younger generations can learn the business and eventually take it over, benefiting both the retiring owner and the new owner.

Mindmap

Keywords

💡Wealth Transfer

Wealth transfer refers to the process by which assets are passed from one generation to another. In the context of the video, it highlights the significant shift in ownership of small businesses due to the retiring Baby Boomer generation looking to sell their businesses, which presents an opportunity for others to acquire wealth through business ownership.

💡Main Street Businesses

Main Street businesses are small, locally owned enterprises that are integral to the community and local economy. They include shops, restaurants, and service providers found in local neighborhoods. The video emphasizes the importance of these businesses as they are often the backbone of local economies and are currently available for purchase.

💡Demographics

Demographics refers to the statistical study of populations based on factors such as age, race, and income. In the video, demographics is cited as the driving force behind the current wealth transfer, as the average small business owner in the US is now over 50 years old and looking to retire, leading to a large number of businesses being put up for sale.

💡Private Equity Firms

Private equity firms are investment companies that pool capital from various investors to purchase and manage companies. The video discusses how these firms have been increasingly buying up small businesses, which can lead to less favorable outcomes for the community and local economy compared to when a business is sold to an individual who will continue to operate it locally.

💡Seller Financing

Seller financing is a method of payment where the seller of a business allows the buyer to pay for it over time, often with future revenue and profits. This is contrasted with traditional financing methods where a bank or other financial institution provides the funds. The video suggests that many small business owners are open to seller financing as an attractive option for potential buyers.

💡Business Buying Sites

Business buying sites are online platforms where businesses for sale are listed, allowing potential buyers to browse and connect with sellers. The video suggests using these sites as a resource to find businesses for sale in one's local area, emphasizing that many business owners may not have listed their businesses online and are open to direct offers.

💡SBA Financing

SBA financing refers to loans guaranteed by the Small Business Administration (SBA), a U.S. government agency that supports small businesses. These loans can be used for various business needs, including purchasing a business. The video suggests exploring creative financing options like SBA loans as a way to facilitate the purchase of a business.

💡Millennials and Gen Z

Millennials and Gen Z are the younger generations that are currently entering the workforce and considering their career paths. The video discusses the potential for these generations to acquire small businesses from the retiring Baby Boomer generation, suggesting an apprenticeship model where the younger generation learns the business and eventually takes it over.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The video mentions inflation as a factor contributing to the dissatisfaction of younger generations with their wages, which may motivate them to consider business ownership as an alternative to traditional employment.

💡Business Ownership

Business ownership refers to owning and operating a business. The video emphasizes that owning a business is a path to wealth, with 60% of millionaires being business owners. It argues that the current trend of small business sales presents an opportunity for more individuals to become business owners and potentially increase their wealth.

Highlights

One of the biggest wealth transfers in US history is currently happening.

Main Street businesses are the backbone of local economies and are highly profitable.

About 1 trillion in small businesses will change hands in the next 10 years.

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.

It's better for everyday people to buy these businesses than for them to be bought by large corporations.

Private Equity firms are increasingly buying small businesses.

Small business owners are often looking for a trusted local buyer.

Many business owners are not tech-savvy and may not list their businesses online.

Websites like BizScout and BizBuySell can help find businesses for sale.

Some business owners are open to creative payment plans, including long-term payments or seller financing.

SBA or third-party financing can be an option for purchasing a business.

Local businesses are often willing to work directly with potential buyers.

Small business owners may not have a retirement plan and rely on selling their business for income.

60% of all millionaires are business owners.

Only 6% of Americans own a business, creating a gap in business ownership.

An apprenticeship model could bridge the gap between retiring business owners and younger generations.

Now is the perfect time to explore owning a business due to the current wealth transfer.

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