“Am I aging too fast” is a question that has gripped the nation and many Anchorage businesses alike. What happens when a successful entrepreneur, who has built a thriving business from the ground up, gets feedback from others that they are “too old” to continue as they have? What if these entrepreneurs have spent the last three, four, or five decades moving forward with their foot on the gas pedal? Do they hit the brakes, head for the nearest exit, pull over to the slow lane, or just stop on the side of the road and consider it? What happens to the entrepreneur, the company, and the people who work there?
In the last few weeks, I have received calls from business owners asking themselves this question. Often, these business owners do not have employees who can buy or take over the company. One caller said, “None of my employees have enough money to buy this business. A few of them might be able to survive if they did it together, but then that opens up a whole new set of problems.”
Another said, “I have two or three employees who want the business, but each of them expects me to finance them. That would put me at risk if they failed. And if I pick one of them, the others will leave.”
The third said, “I’m getting older. I’m not as sharp as I used to be, and some of my employees seem to be taking advantage of that. Also, two days ago I found out that my best employee was circulating his resume. I called him into my office and asked why. He said he needed to protect his future and his family’s and didn’t know how long I was going to keep the company going, or if I was going to just shut it down without warning.”
“My current employees are talented,” said the fourth employee. “However, they all have a lofty idea of what owning a business is all about. I’ve been through some tough times, and I don’t know if any of them have that ability. And, I have to admit, I’d rather close my business than sell it cheap.”
The stakes for these entrepreneurs and those who work for them and rely on a steady paycheck are high. I suggested to several owners that they consult a business broker, only to receive a call back that the broker had given them the hard truth — that without them at the helm, their business could not be sold. “I would have to commit myself to the buying company for three to five years if I sold,” one owner said. “Why would I do that if I wasn’t sure I wanted to work that long?”
A recent Wall Street Journal article, The Age Question Looms Over America’s Bosses, reported that more than half of private businesses in the U.S. are owned by people over the age of 55. The Bureau of Labor Statistics projects that there will be twice as many employees age 75 and older in 2030 as there were in 2020, many of whom are high-powered professionals who have chosen to work past the traditional retirement age.
So what is the answer if you are a business owner who realizes that you are not who you used to be, but you are the person that clients and employees trust, and without you your business will be nothing? Do you give up or keep going?
The hard truth: Entrepreneurs need to decide the answer to this question before they burn out. For many business owners, that was three to 10 years ago, which means they don’t have many options right now.
