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What’s next after Retirement for ‘Baby Boomer’ Business Owners?
May 26, 2008
There are two generations of business owners who are currently contemplating their estate and/or succession planning. Although united with the commonality of dedicating their lives towards building successful businesses that they desire to perpetuate into and through the next generation, there is also wide generational gap that is rarely bridged:
- The “Greatest Generation” who won WWII, braved the Depression, did the jive to Tommy Dorsey, and went on to build modern America. This generation was united not only by a common purpose, but also by common values--duty, honor, economy, courage, service, love of family and country, and, above all, responsibility for oneself.
- The “Baby Boomers” who came of age during the Cold War, cut their political teeth on Vietnam (“make love not war”) with the Beatles and Stones, and witnessed the birth of the space age. This generation sought to build a legacy based upon the values of personal freedom, tolerance, openness, transparency, and equality while desiring to fulfill their higher purpose.
For the WWII generation, retirement has never been an issue, as it’s never been considered as a viable option. Currently in their late 70’s and 80’s, they still come to work every day, maintain voting control of their business(es), are extremely private with their personal affairs (trust is an issue), and plan to die in their chairs. They have carried the burden of living with the underlying fear that one can never have enough put away (there is no such thing as financial security) so they continue to accumulate assets well beyond their needs. Everything they are, their concept of self worth, is wrapped up in their business. Succession planning has been difficult – if not impossible – to achieve, as they do not believe the next generation will care as much or work as hard as they did and still do.
For the vast group of “Boomer” business owners who were born between 1946 and 1964, the hot topics of discussion are now of grandbabies, vacation homes and what’s next after retirement. Now in their 50’s and 60’s, they ravenously reaped the rewards from their parents’ diligence, frugality and hard work. They grew up in an altruistic period where security was not the driving concern, but philosophical, spiritual and artistic growth was encouraged. Starting families later, they remember what life was like before the responsibilities of parenthood and running a business, and are now becoming empty nesters. The internal dialogue is now, “I’ve built a successful business, am financially secure, I have great managers and my children ready to take the helm. What’s next for me? Have I made a difference in the world? What’s my next ‘What’?”
To those readers who are of the Boomer generation, my comments are directly specifically to you:
Your drive and entrepreneurial spirit has provided opportunities and livelihoods for countless families. But, at this point in your life, a question to be asking yourself is, “What is my next ‘What’?”
- How do you wish to invest your time and energy?
- What do you want your legacy to be?
- When do you want to turn over control of the business?
You have proven time and time again that, once you decide what you want to devote your attention and energy to, the “How” is fairly straightforward. The answer to the question of what will fulfill your highest purpose now, in this time of your life, will be the propelling force to clarifying the development of your personal exit strategy from the business.
My next blog will address: Visualizing Life beyond your Business
Posted by Ricci M. Victorio on May 26, 2008 | Comments (2)
