The Next Generation of Business Owners

This past week I had the pleasure of speaking to an incredibly sharp group of high school students at Verona Area High School in Verona, Wisconsin. This was a special event for me — Verona is my alma mater.

Much has changed at the school — when I graduated, there were just over 700 students. Today, enrollment is over 2,000 students! Needless to say, much has changed since I attended.

The VP of the DECA Club had found me on LinkedIn, seen my background, and asked me to speak to the class on the topics of business and entrepreneurship. It has been many years since I was in a high school classroom and I really wasn't sure what to expect.

I kicked off the presentation giving an overview of my experience which included working as a stuntman in Hollywood, founding a chain of martial arts schools, buying and selling businesses, launching a marketing firm, and finally ending with my current position at Collaborative Commercial Business Brokers.

What amazed me about this group was how inquisitive they were. The questions asked were thoughtful and several caught me a bit off guard — a true testament to the quality of thinking going on in many of today's classrooms. When I've presented to high school students in the past, the questions typically focused on my experience in Hollywood. While that was a fun chapter in my life, it wasn't the most impactful chapter.

This group of future business leaders mainly asked questions related to my experience in business and entrepreneurship — here are some of them:

1. "What do you look for in a mentor?"

2. "What were some of the principles you embraced to successfully build your businesses?"

3. "What is one piece of advice you would give when it comes to investing?"

4. "How do you stand out in a crowded and competitive marketplace?"

5. "Do you think an MBA has a good return-on-investment?"

6. "Can you create demand in a marketplace where demand doesn't exist?"

7. "How helpful was the network you developed in college to your success today?"

8. "How do you know when you should keep pressing forward with an idea versus throwing in the towel?"

9. "What mistakes did you make along the way?"

I couldn't help but think that these students were light years ahead of where I was at the same age. Which brings me to my next question...

What does the next generation of entrepreneurs and business owners look like?

By "look like," I don't mean demographics or physical appearance; I mean traits. Every generation is markedly different than the previous generation — each one being a product of their parents and the events that occurred during their formative years. For example...

Baby Boomers (1946-1963) were impacted by the Vietnam War, JFK and MLK, and events like Woodstock and the Civil Rights Movement.

Gen X (1964-1981) saw the Berlin Wall come down, the Challenger Shuttle explosion, the rise of personal computers and technology, and the fall of the Soviet Union.

Millennials (1982-1996) were the first generation to grow up with the internet, many lived through 9/11, The Great Recession, and the beginning of Social Media.

Gen Z (1997-2012) were kids when COVID-19 arrived and were the youngest generation to experience the beginning stages of Artificial Intelligence.

Gen Alpha (2013 forward) are currently children and teens between the ages of 1 and 15.

What does this mean for business owners who will be selling in the next five years?

The impact of younger business buyers is already impacting the marketplace. Many Baby Boomers are having a difficult time passing the torch — often, their children don't want to take over the family business and choose to venture off on their own.

However, these businesses have incredible value to buyers who aren't afraid to put in some hard work. Here are some trends we're seeing when it comes to buyer demographics and behavior:

• "Main Street" businesses are being purchased by Gen X and Millennials. This comes as no surprise because these two generations are next up in line for their shot in business. Because of this, sellers need to be aware of the nuances of how each of these generations think and behave.
  

• Gen X and Millennials differ greatly in what they value. Because Gen X is closer to retirement, they typically don't think as much about work-life balance as the Millennial generation. Gen Xers also grew up with less technology than Millennials. Generally speaking, the Millennial generation has a higher comfort level with diverse social media platforms which now play a key role in just about every business.
  

• AI is changing how business is done. It's also changing how every generation thinks about business and goes about their work, but surely will influence Gen Z the most — Gen Z will be the first generation of native-users of AI and have the longest runway using it prior to becoming tomorrow's entrepreneurs.

Advice for Buyers and Sellers

If this feels overwhelming, don't worry, you're in good company. Whether you're a buyer or seller of a business, the principle to take away is this: adapt to the generation you're negotiating with.

This is no easy feat. Younger generations struggle to understand their older counterparts and many of the older business owner we work with don't have the energy or patience to adapt to younger business buyers. However, bridging this communication and cultural gap may be the difference between success and failure.

Here's to your success - regardless of what generation you come from!

To your success,

Jason Huett Business Broker | CEO | CMO

Collaborative Commercial Business Brokers, LLC.