59% of the Millenial and Gen Z population, surveyed by HarrisPoll, indicated a strong interest in starting their own business.
Millennials are expected to become the next dominant force in business ownership – a generation known for their innovation, adaptability, and purpose-driven work.
Here at Consolidated Planning, our repeatable process built on protecting, growing, and exiting your business allows us to provide the right resources and support to help you reach your goals.
For those with the entrepreneurial spirit, we’ll help you understand how your unique strengths position you and your business for success. With that, we will share how essential careful planning is to ensure financial alignment, sustainable growth, and a well-structured exit strategy before you purchase or start your business.
Why Millennials Make Great Business Owners
Being a business owner isn’t for the faint of heart. In fact, The U.S. Bureau of Labor Statistics (BLS) reports that about 20% of new businesses fail within their first two years, 45% within five years, and 65% within a decade. Just 25% survive for 15 years or longer.
But the millennial generation has characteristics that can’t be ignored when it comes to building a successful business in today’s day and age.
- Tech-Savvy Mindset: While millennials were likely using AIM to chat with their friends, they didn’t necessarily grow up with technology, at least not like we know it today. However, this generation has learned and excelled with the advancements in technology, automation, and online marketing strategies.
- Purpose-Driven Approach: What will set your business apart from all the others is a purpose. From how you run your business to what the business actually is. With this approach, you can better prioritize your business to align with your personal values, social responsibility, and sustainability.
- Financial Prudence: Having experienced economic downturns, they value financial stability, diversification, and risk mitigation.
- Preference for Work-Life Balance: Millennials often seek businesses that allow flexibility, remote work, or a strong company culture.
You CAN be the business that makes it further than the two year mark, the five year mark, and even the 15 year mark if you adequately plan.
3 Steps To Start Your Business The Right Way
According to that HarrisPoll survey, the biggest barriers for these generations are feeling like they don’t have enough money (39%) or knowledge to start (29%). And that’s fair. But here’s where you should start.
# Protecting Your Business Investment
One day your business will likely be your largest asset. And that asset needs protecting. From day one. Here’s what that might look like for you:
- Legal Protection: Adequate and complete structuring of contracts, like your Buy-Sell Agreement, review of intellectual property, and mitigate liabilities where identified.
- Insurance and Asset Protection: Secure appropriate business insurance, including liability, key person insurance, disability buy-out insurance to name a few.
- Financial Planning: Establish contingency plans for economic downturns, leadership transitions, and unexpected disruptions to ensure business continuity.
#2 Strategizing Your Business Growth
Once you start to understand how to protect your business, you can then work on the growth piece to drive expansion and profitability. Here’s what this piece might include:
- Find and Retain Key Employees: Focus on finding and retaining top talent by offering a positive work culture, professional development, and incentive and retention plans.
- Diversify Revenue Streams: Explore opportunities to offer more to your customers, build strategic partnerships, and alternative monetization strategies.
The organic and attainable growth for your business is all about the people you have in place.
Remember, growing your business doesn’t necessarily mean taking on excessive debt to succeed. This focus on a more organic strategy — steadily increasing your revenue year over year — can be far more sustainable. Especially if you want to be part of that 25% staying in business past year 15.
#3 Planning Your Exit Strategy From Day One
Everyone talks about business protection and growth to a certain extent. But what’s usually missing from the planning phase is an exit strategy. Yes, from day one.
A well-planned exit not only ensures long-term financial stability and business continuity but it provides a road map for your business journey. We know you’re just getting started but here’s what you should consider for your (ultimate) exit:
- Set Long-Term Goals: Define personal financial milestones and business valuation targets to guide strategic decision-making.
- Establish a Succession Plan: Identify potential successors, whether within your business, family, or a third party sale, to ensure a smooth transition.
- Build Business Value: Retain key employees, demonstrate cash flow, and make yourself inconsequential to attract buyers by mitigating risks to them.
- Optimize Tax Strategies: Taxes, taxes, taxes. Understand the right tax strategies to minimize capital gains tax AND maximize post-sale wealth.
Start Building The Foundation For A Sustainable Business
We know this might feel like a big undertaking that is farsighted but building a business requires a strategy focused on business protection, growth and even your exit to help you build a sustainable, thriving business.
To get started on prioritizing your risk protection, strategic growth, and long-term exit planning, talk with a business planning professional at Consolidated Planning about how our process can help you.
Exp. 2/2027
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Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. The information provided is based on our general understanding of the subject matter discussed and is for informational purposes only.
This material contains the current opinions of Ben Decker and Consolidated Planning only. These are not the opinions of Park Avenue Securities, Guardian, or its subsidiaries.
