Once again, Joe has hit the mark. Stimulating the economy, one small business at a time by equipping and empowering those that have skills but lack resources. Thank you for your thought leadership, Joe.
So very true. Shamelessly self-promoting a wonderful company I invested in: Baton (https://www.batonmarket.com/)
In their words, Baton gives every small business owner—and future owner—the insight they need to plan their next big move. We’re working to make small business ownership attainable for everyone. And that starts with universal access to reliable data and trusted expertise.
Loved this piece. I’m currently very interested in the home services industry, as I believe there’s so much efficiency to be created through technology in the quoting/negotiation processes in this industry. Coming from a family that focused on home service businesses, I’ve been super interested in thinking about how tech can streamline some of the processes I mentioned above
Another area that could help is opening up small business loans to the broader retail and institutional market. SMBX which was founded a number of years ago has tried to get this idea off the ground, but it's really hard and slow going.. SBA loans have super low default rates and pay attractive yields. If the market could be opened up it could be a win win - rates will come down because the market will no longer be closed and one could build liquidity poops via mutual funds and ETFs. Regional banks have become glorified mortgage lenders and more and more have backed away from small business loans - a trillion dollar market hiding in plain sight that has not been yet opened.
I understand the need to equip small businesses owners with the tools to acquire and solidify their businesses, which are indeed the backbone of America. And good on you for providing resources to that effect.
But I do not see a crisis in many
older business owners retiring and moving on, with their businesses either being shuttered or sold. Hasn’t that always been the way? Won’t there always be someone else to take up the business baton from a business which has closed, so long as there is a case for the business to continue? I suspect that America will always have more than its share of small businesses, if for no other reason than we believe in individual freedom and don’t always want to work in a corporate setting.
It’s a crisis not because older business owners are retiring and moving on, but because they’re going to do so at historically high rates, all while less than half of these listed for sale are ever sold, as Joe mentioned. The points made in the blog regarding why they’re not successfully sold frequently also makes a lot of sense, as PE looks for bigger buy outs… and ETA typically doesn’t bring along the relevant skills necessary to successfully operate these businesses.
Relying on someone to eventually take up the business isn’t a reliable solution, when there’s a clear opportunity to put experienced operators in the position to do what they do best, without dealing with the administrative hassles that come with running a business, and being provided the technological resources to run the business very efficiently.
I believe this is an important matter/crisis to deal with if we want the quality of these businesses that function at the roots of America to continue to strive and drive economic development, all while keeping the American dream alive.
Entrepreneurship Through Acquisition should be taught at every University. More resources should go into outside of that too—it’s one of the greatest opportunities available today. Rather than gambling on venture capital, or starting from scratch almost anyone with enough grit and some SBA funding can acquire established businesses that took decades to build.
The challenge is even larger in Latin America. Its unbelievable how big the succession problem and opportunity is.
These guys are tackling it with a great model of employee ownership as the goal.
Great idea. I've seen PE take over some auto shops and plumbers, wrapping them into a "chain". But it's been a negative for me,.as a customer. I ditched my auto shop and went back to using the dealer, because it became hard to tell.the difference.
Anything that retains individual ownership seems like a far better idea.
you should let American workers invest some of their 401k in this vehicle so American workers get to own small business while letting the best people operate it and they get to diversify away from mag 7
Once again, Joe has hit the mark. Stimulating the economy, one small business at a time by equipping and empowering those that have skills but lack resources. Thank you for your thought leadership, Joe.
So very true. Shamelessly self-promoting a wonderful company I invested in: Baton (https://www.batonmarket.com/)
In their words, Baton gives every small business owner—and future owner—the insight they need to plan their next big move. We’re working to make small business ownership attainable for everyone. And that starts with universal access to reliable data and trusted expertise.
Love this. Small business represents the soul of America.
Loved this piece. I’m currently very interested in the home services industry, as I believe there’s so much efficiency to be created through technology in the quoting/negotiation processes in this industry. Coming from a family that focused on home service businesses, I’ve been super interested in thinking about how tech can streamline some of the processes I mentioned above
Another area that could help is opening up small business loans to the broader retail and institutional market. SMBX which was founded a number of years ago has tried to get this idea off the ground, but it's really hard and slow going.. SBA loans have super low default rates and pay attractive yields. If the market could be opened up it could be a win win - rates will come down because the market will no longer be closed and one could build liquidity poops via mutual funds and ETFs. Regional banks have become glorified mortgage lenders and more and more have backed away from small business loans - a trillion dollar market hiding in plain sight that has not been yet opened.
Timely exposition of a looming situation.
I understand the need to equip small businesses owners with the tools to acquire and solidify their businesses, which are indeed the backbone of America. And good on you for providing resources to that effect.
But I do not see a crisis in many
older business owners retiring and moving on, with their businesses either being shuttered or sold. Hasn’t that always been the way? Won’t there always be someone else to take up the business baton from a business which has closed, so long as there is a case for the business to continue? I suspect that America will always have more than its share of small businesses, if for no other reason than we believe in individual freedom and don’t always want to work in a corporate setting.
It’s a crisis not because older business owners are retiring and moving on, but because they’re going to do so at historically high rates, all while less than half of these listed for sale are ever sold, as Joe mentioned. The points made in the blog regarding why they’re not successfully sold frequently also makes a lot of sense, as PE looks for bigger buy outs… and ETA typically doesn’t bring along the relevant skills necessary to successfully operate these businesses.
Relying on someone to eventually take up the business isn’t a reliable solution, when there’s a clear opportunity to put experienced operators in the position to do what they do best, without dealing with the administrative hassles that come with running a business, and being provided the technological resources to run the business very efficiently.
I believe this is an important matter/crisis to deal with if we want the quality of these businesses that function at the roots of America to continue to strive and drive economic development, all while keeping the American dream alive.
Great idea!
Love this!
Entrepreneurship Through Acquisition should be taught at every University. More resources should go into outside of that too—it’s one of the greatest opportunities available today. Rather than gambling on venture capital, or starting from scratch almost anyone with enough grit and some SBA funding can acquire established businesses that took decades to build.
The challenge is even larger in Latin America. Its unbelievable how big the succession problem and opportunity is.
These guys are tackling it with a great model of employee ownership as the goal.
https://equityx.co
Great idea. I've seen PE take over some auto shops and plumbers, wrapping them into a "chain". But it's been a negative for me,.as a customer. I ditched my auto shop and went back to using the dealer, because it became hard to tell.the difference.
Anything that retains individual ownership seems like a far better idea.
you should let American workers invest some of their 401k in this vehicle so American workers get to own small business while letting the best people operate it and they get to diversify away from mag 7