When opportunity knocks, answer the door
In 1945 the Second World War ended and the soldiers went home.
In 1946 the babies starting being born, which occurred at a steady rate for the next 18 years. This economic group was called the “baby boomers” and is to date the largest economic group known.
One very astute American businessman saw this group for what they are, an economic boom. The businessman was Lee Iacocca. Before joining Chrysler he had a career at Ford where he developed the Mustang, which he sold to the soldiers returning from war. Lee explained the baby boomers affect all markets they pass through and likened it to pushing an American football through a garden hose to illustrate how much this group distended the markets they pass through.
Iacocca followed the boomers into their next life phase, which was marriage and the birth of their children. Again he saw the need to create a family vehicle because a Mustang was not a family car, and launched the MPV (Multi-Purpose Vehicle).
Let’s fast forward to 60 or 65, you now have the leading edge of the baby boomers starting to retire and will keep retiring until 2029.
A whole new retirement industry has already been formed to care for them, which includes lifestyle villages.
But what characterises a baby boomer? Boomers are people who have been successful in life, own their own businesses and employ many people, to the extent where it has been reported that boomers could control as much as 85 per cent of the world’s wealth.
We are talking here about Donald Trump, Alice Walton, Oprah Winfrey, Bill Gates, Christo Wiese, Whitey Basson, Cyril Ramaphosa, Tokyo Sexwale, Johan Rupert, Larry Ellison and Patrice Motsepe, among others.
There is a list of some 1 826 billionaires with a total net worth of $7.05 trillion (R105 trillion) between them.
Boomers would own one or several homes, take holidays overseas and have two or more German or Italian cars parked in the garage, with boys’ and girls’ toys like Harley-Davidsons.
This is where opportunity knocks, since boomers are retiring, and in order to retire they need to sell their businesses or close them down.
Many of their children will not take over these businesses, since their children, having been encouraged to study, are probably successful in their own right, being attorneys, doctors, engineers or even business owners.
Succession planning was not a priority for these boomers.
The businesses run by these boomers have all the value drivers in place that makes a business successful. What an opportunity for an entrepreneur!
For those who are courageous enough, now is the time to take hold of one of these businesses and become like boomers who have funds to spoil their grandchildren, sport designer clothing, and have plenty of electronic toys.
This is therefore a great opportunity for entrepreneurs to get their fair share of the boomer Rands.
* Article written by Derek Fox, President of the Greater Boksburg Chamber of Commerce and Industry.
