Member Article

Stuck in the middle with you – How Generation Xers make the best small business owners

Don’t let the media’s preoccupation with the two generations pillaring today’s business world misguide you, writes Sarah Louise Dean, head of social media at BusinessesForSale.com.

It’s those of us born between 1965 and 1981 – Generation X – who make the best small business owners.

Baby Boomers (born between 1945 and 1965) created a way of life for themselves that was a necessity after the economic fallout from the Second World War. They built up traditional small businesses mostly from scratch, working hard, saving for little short-term reward.

Now, in their 60s-70s that reward is all the sweeter, as they are living longer than any previous generation. With ringfenced pension pots and no mortgages Baby Boomers enjoy the fruits not only of their labour, but of an economy that has turned many into paper millionaires.

Their businesses are no longer their main concern and are inert. Seemingly the least affected by recession, Boomers now take their toll on the public services that are being funded by their children - Generation X.

Generation Y

Let’s not blame Baby Boomers entirely for the present predicament of Generation X. Unfortunately, the very thing that Boomers championed is stymying current small business success. It is Progress – both technological and financial – that has sped up so quickly that the traditional business models favoured by the Boomers can no longer keep pace.

Online media from social networking, through advertising and payment channels like PayPal to truly office-less social businesses has led to the detriment of traditional small businesses. And with these new times comes a new type of entrepreneur.

Never before have business-owners started so young! The double whammy of rising cost of a university tuition and rampant access to online media, has created the Generation Y (or Millennial) entrepreneur. All they need is a strong voice, Wi-Fi and a core audience to make a packet.

The examples are myriad, but if you’ve not heard of Emil Motycka or Jenna Marbles, don’t feel too bad, they are Millennials who make money by providing services to other Millenials. They succeed because they are tenacious with Teflon-coated hides.

Generation X

Generation X has a huge burden on its shoulders. Business Insider discovered that for US Generation Xers, the average 37 year old man is now much poorer than the average person of that age in 1983.

Without the luxury of a full pension pot or the time (and inclination) to start twenty online ventures by lunchtime, Xers are perfect to run small businesses as they’re intelligent enough to run a business, and sensible enough to generate longer-term success.

For example, Generation X can see the virtues of acquiring an existing business where others can’t.

With business ownership comes the satisfaction of being the boss without the headache of a startup. Xers are experienced enough in the workplace to generate a steady income, purchase assets and grow a business without intimidation.

Five reasons why Generation Xers are best

1. Business knowledge. Generation X can flourish in the small business arena by taking the knowledge of working hard for many years and intertwining that with understanding of the future of business – increased customer connectivity. They thus meld the primary skill sets of Baby Boomers and Generation Y to take a more adaptive approach to running a business, increasing customer engagement and customer retention.

2. Financial and business history: People of this generation have been safeguarding funds, paying off debt and sometimes – unfortunately – receiving finance through redundancy, all which will provide the necessary capital needed to buy their own business. Generation Xers also have a number of connections who can help them with their marketing, tax and salesmanship, plus they have working relationships with their bank, accountants and lawyers that other generations cannot hold a candle to.

3. Lack of irrational pride: A Generation X buyer can now buy a fully-formed business that was created by a Baby Boomer and use their hard-working spirit to find the diamond within the coal, something a Generation may not attempt. They realise that there is just as much entrepreneurial skill required in grow a business with staying power than starting one from scratch. Generation Xers are also the peers of both their customers and of current business leaders and decision makers. This means that they understand their key client relationships and are realistic about what their business can achieve and how to achieve it.

4. Flexibility: Where Generation Y are used to texting their friends they use messaging, social media and email as the primary communication tools. But online communication is not always the smart move for the small, local business. Online communications can be ignored and put off, or worse, simply not seen. A Generation X business owner understands personal service, meeting and calling suppliers and customers to discuss their needs and make sales (like a Baby Boomer would do), but also keeps up to date with online promotions. They are agile and flexible business leaders.

5. Timing: Deloitte Consulting recently found that only 37% of Generation X employees will be remaining with their current employers if the economy continues to improve, figures much lower than both Generation Y (44%) and baby boomers (52%). Generation Xers are ready to make the leap to a more meaningful work existence now.

If you are a member of Generation X then pat yourself on the back. You have the correct life experience required to manage and run a small business, in addition, you have a firm understanding of when and where to accrue debt, when to use newer marketing methods and how to sell to your core audience – people just like you.

So what’s stopping you?

How about this for a final thought? Generation Xers will soon have to contend with both Generation Y AND the business pioneers turning 18 this year – Generation Z. And who knows what skills they have up their sleeves?

This was posted in Bdaily's Members' News section by BusinessesForSale .