“Small businesses are the economic engine of our communities and they need our support during these unprecedented times.”

– Catherine Cortez Masto, U.S. senator, Nevada 

"Mitigating Retirement Without Savings: 5 Ways Small Business Credit Financing Can Help Sell Your Business"

Introduction

The retirement of baby boomers is presenting a significant challenge for businesses and individuals alike. With a negative replacement rate of employees and a significant portion of workers employed by small and medium businesses owned by retiring baby boomers, the potential impact on jobs and the economy is substantial. Additionally, the low retirement savings of baby boomers is a concerning issue. To address these challenges, businesses and individuals need to start planning and strategizing for the future, with succession planning and retirement savings being critical components. This article will explore the importance of succession planning for small and medium businesses and provide tips on how individuals can mitigate the impact of retiring without savings by using small business credit financing to sell their business.

As baby boomers continue to retire at a higher than usual rate, the workforce is facing a significant challenge in terms of employee replacement. This challenge is not only limited to the United States but is being experienced globally. The replacement rate of employees is negative, meaning that there are fewer new entrants into the workforce than those exiting it. This trend is expected to continue, given that the number of baby boomers retiring will continue to increase.

Another issue stemming from the retirement of baby boomers is that 33% of all American workers are working for small and medium businesses owned by retiring baby boomers. These businesses are at risk of closing down or being sold, leading to potential job losses. The impact of these closures or sales is not limited to the employees but impacts the local economy as well.

The low retirement savings of baby boomers is also concerning. This generation is facing a retirement crisis as they have not saved enough to maintain their current standard of living post-retirement. This issue is further exacerbated by the fact that social security benefits are not enough to cover all their retirement expenses.

To tackle these challenges, businesses need to start planning and strategizing for the future. Succession planning is essential to ensure business continuity, especially for small and medium businesses. It is crucial to identify potential successors and train them to take over the business when the owner retires. This will ensure that the business continues to operate and that jobs are not lost.

Individuals also need to start planning for their retirement as early as possible. This includes saving for retirement, exploring alternative retirement options, and seeking professional advice. Governments need to take action to support individuals in their retirement planning by increasing access to retirement savings plans and providing incentives for retirement savings.

Here are 5 ways to mitigate retiring without savings by using Small Business Credit Financing to sell your business:

1. Secure financing to sell your business: Small business financing can provide the necessary funds to sell your business to a potential buyer.

2. Leverage the value of your business: By selling your business, you can use the proceeds to support your retirement needs.

3. Consider alternative retirement options: Explore alternative retirement options, such as part-time work or consulting, to supplement your retirement income.

4. Seek professional advice: Consult with financial professionals to help you plan and execute a successful retirement strategy.

5. Plan for succession: Ensure business continuity and job security by identifying and training potential successors to take over your business.