“Am I getting too old too fast?” is a question that has transfixed the nation and is occurring in many Anchorage businesses. What happens when successful entrepreneurs who have built thriving businesses from the ground up receive feedback from others that they are “too old” to continue as they have been? What happens when these entrepreneurs have been pushing forward, keeping their foot on the gas for the last 30, 40, 50 years? Will they hit the brakes, take the nearest exit, stay in the slow lane, or pull over to the side of the road and think things through? What happens to the entrepreneurs, the businesses, and the people who work there?
Over the past few weeks, I’ve fielded calls from CEOs asking these same questions. In most cases, they haven’t hired anyone capable of buying or taking over the company. “No one on our team has the money to buy the company,” one caller said. “Maybe a couple of people could work together, but that would create a new problem.”
Another said: “I have two or three employees who want to start a business, but they all expect me to help them financially. Then if they fail, I lose out. If I pick one of them, the others will quit.”
A 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 one of my top employees was circulating resumes. I called her into my office and asked her why. She said she needed to protect her and her family’s future, and that she didn’t know how long I would continue with the company or if I would close it down without notice.”
“My current employees are talented,” a fourth says, “but they all have exaggerated ideas about owning a business. I’ve been through tough times and I don’t think any of them have what it takes. And to be honest, I’d rather close the business than sell it cheap.”
The risks are high for these entrepreneurs and the people who work for them and rely on a regular paycheck. I’ve suggested to several business owners that they consult with a business broker, only to receive calls from brokers who tell them the painful truth: they can’t sell their business unless they take the reins. “If you sell, you’ll have to commit yourself to an acquisition company for three to five years,” one business owner told me. “Why do that when you’re not sure you want to work that long?”
According to a recent Wall Street Journal article, “Age is a Looming Question for American CEOs,” more than half of private companies in the U.S. are owned by people over the age of 55. The Bureau of Labor Statistics projects that by 2030, there will be twice as many employees over the age of 75 as there were in 2020, many of whom are high-ranking professionals who choose to work beyond the traditional retirement age.
So if you’re a business owner and you realize you’re not the person you once were, but you’re the one your customers and employees rely on and the business is worth very little without you, what’s the answer? Give yourself some “time” or carry on?
Painful truth: Entrepreneurs need to determine this answer before they run out of gas. For many business owners, that was 3-10 years ago, meaning they have few options today.
