Many small businesses are for sale in Australia right now, including many newsagencies.
While some talk about economic conditions as the reason (queue the cost of living spin cycle of news outlets), the bigges reason I can see is the age of the business owners selling. Typically, they a boomers planning for retirement.
The baby boomer generation, born between 1946 and 1964, comprises a substantial portion of small business owners in Australia. As this cohort reaches traditional retirement age, a natural wave of business transitions is occurring. Whether they make the decision to see or hand the business to family members depends on their own circumstance.
While this demographic shift has been predicted, not many took notice. Instead they are worrying as if something unpredictable and bad is happening. It’s not.
In my experience, many baby boomer business owners lack formal succession plans. This can stem from various factors, including the absence of interested family members or employees capable of taking over.
Consequently, selling the business becomes the most viable option for owners seeking to secure their retirement, which places us where we are today.
Plenty of baby boomers have accumulated ‘wealth’ or assets tied to their businesses. As they transition into retirement, they seek to liquidate these assets to fund their post-working lives.
The sheer volume of baby boomer-owned businesses coming onto the market creates a unique opportunity for aspiring entrepreneurs, particularly younger generations. It also makes for a challenge for those seeking to exit – especially in sectors where there are plenty for sale, like newsagencies. This plays into price and the easy of finding a buyer.
Smart small business owners, including newsagents, have acted long ago to create profitable businesses knowing that they are likely to make more from the day to day trade of the business than when they sell. I have written about this plenty of times here and elsewhere. Make every day your payday.
Too often I see small business owners who have not planned for a profitable exit make emotional decisions and strike out against others as if they are responsible for decisions the small business owners themselves have made.
It’s a buyers market right now. It’s not too late, though, to focus on making every day count for more value for you, making the selling less stressful and sharp.