Millennials are some of the most ambitious people on the planet, and they’re using this trait to their advantage — especially in terms of small business ownership.
Millennials (Generation Y), people born in the eighties and nineties, are the current driving forces behind small businesses. This generation also possesses the motivation do well in the game. In order to succeed, they must follow the footsteps of their predecessors on the path of being informed buyers.
Anatomy of a Millennial Buyer
While some Generation Y entrepreneurs prefer to build their business from the ground up, others are willing to take a risk by buying existing companies. Their move to purchase small businesses from sellers and retiring baby boomers shapes the marketplace in several ways.
Diversity is an important factor. A study from 2014 reported that millennials with purchasing power are more diverse compared to the older generation of buyers. Only 48% of millennial buyers (ages 18 to 29) part of the demographic identified as Caucasian.
The racial diversity offers a positive shift in the market. Because of the growing mix of Asian, African American, and Hispanic buyers, small businesses receive a variety of benefits and a more inclusive workforce.
Setting Off on the Right Foot
Twenty- or thirty- something buyers may already have some experiences in the industry, but several steps need to be taken so they can get off to an even better start.
For example, working with an existing network is helpful in uncovering potential business opportunities. In order to maintain confidentiality, sellers should not advertise their listings. A millennial owner’s network should be opportunities that are not yet on the market.
Devoted-Business.com, a coaching consultancy company, recommends focusing on apprenticeship opportunities. In some industries, an apprenticeship paves the way for valuable connections and skills development at the same time.
Patience is a Virtue
Finally, millennials should never underestimate the saying “Patience is a virtue” because it really is. Buying a small business is not easy — there will be bumps along the way. From choosing the right company to closing a deal, the entire process will definitely test patience.
A clear set of goals is what every millennial business owner needs to succeed. By establishing parameters and trusting good support, Gen Y can avoid the pitfalls of small business acquisition.