Boating Industry Canada June 2015 - (Page 29)

marketInG Beating the Boomer Bust BY: JOHN F. DINI Foreword: We do not have the same depth of research and statistics in Canada that is available in the U.S. but this article by John F. Dini is a powerful reflection of where we suspect many Canadian marine business owners are at now. Combine this with the Marine Tech Career Crisis article on page 14 of this issue of Boating Industry Canada and we think a solution will resolve into focus for the Canadian industry - Andy Adams mOre tHan 60% of US business owners are over 50 years old, and many of them are looking toward retirement and the process of attracting and vetting potential buyers to take the reins. The differences in yesterday's and today's business landscapes are stark-as Boomers were raised in a highly competitive environment, many face the problem of having built companies that won't attract a new generation of buyers. Three major trends impact the salability of a business. Understanding these trends can help owners transition successfully in a challenging market, and ultimately identify the buyer who will carry their company's torch going forward. Why Do Boomers Work so Hard? Baby Boomers are 2 ½ times more likely to own a business than the generations before or following. Between 1975 (when the first Boomers turned 30), and 1986 the formation of new businesses in America jumped from 300,000 to 700,000 annually. Faced with fierce competition on the pathway to success, many Boomers chose to chase the brass ring by going into business for themselves. New business start-ups have never again reached that level. The result is that nearly two-thirds of all businesses in the United States with fewer than 500 employees are in the hands of people who are preparing to retire. The impact of the Baby Boomers at each stage of life created a one-time surge in many statistics. They tripled the number of college graduates, and brought over 50 million women into the workforce. Between 1970 and 1980 the population of the United States increased by 11%, but the employment base grew by an astonishing 29%. Replacing such a massive portion of the population in the business sector is no easy feat. the perfect storm There are three major trends that challenge a small business owner preparing to exit. Like the movie "The Perfect Storm," these three trends; demographic, psychographic and sociographic, are combining to create a Tsunami that will change the entire landscape of independent business ownership. * Demographically, the generation following the Boomers (Gen X) is much smaller. From a supply and demand perspective, there simply aren't as many available buyers as the number of potential retirees seeking them. * The psychographic profile of the buyer generation is unfavourable. What business owner hasn't complained about the work ethic of the younger generation? Raised in a forty year period of economic growth (the longest sustained period of expansion in our history) Generation X and their successors (The Millennials) are more likely to choose family first, and perceive jobs and employers as merely the means to a personal end. They aren't wrong. The parents of the Boomers' understood the difference between work and personal life. One started when the other ended. In their drive for success, the Baby Boomers mixed the two and created the term "work/life bal- www.boatingindustry.ca 29 http://www.boatingindustry.ca

Table of Contents for the Digital Edition of Boating Industry Canada June 2015

Insight
Industry News
Impact: Rob Rule
Industry: Marine Tech Crisis
GE Spotlight
Ad Nauseam
Marketing: Beating the Boomer Bust
Made In Canada: Sideshift Thrusters
Made In Canada: Nova Braid
The Boat Shop: NMEA
The Boat Shop: ABYC

Boating Industry Canada June 2015