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The Secret To Recruiting Echo Boomers (Generation Y)

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Who are Echo Boomers? They are the children of the baby boom and are known as Generation Y, the Echo Boomers, or the Millennials (choose your favorite label). They were born between 1977 and 2002. They are increasingly becoming known more and more as the Entrepreneurial or “E” Generation.

Writing my new book on Business Planning I included a lot of information on one of the growing problems for small business owners - recruiting and retaining employees. When it comes to recruiting young people (Echo Boomers) to work in your business. Back in 2000, I identified this trend, now I decided it was time to offer business owners some practical suggestions for dealing with this very real challenge.

Service, Innovation, and the Customer Experience

Customers demand value and service. You deliver on these demands through people. Either directly (customer service) or indirectly. People are your most valuable asset, but it is difficult to quantify the impact. Value-added and return on investment (ROI) are also difficult to assess.

Tips Dealing With Baby Boomers’ Kids - The Echo Generation

The baby boomers’ kids are called the echo generation. These kids grew up with the Internet, bits and bytes. They’re not afraid of technology. In fact, they embrace it. More so than their parents. Where the child passes the parent in adoption and use of technology is known as the ‘generation lap’. However, there is one important point - they do not see the Internet as technology anymore than a car, radio or refrigerator.

They have become an authority on the Internet, the single biggest innovation in our society. This net-generation is curious, intelligent, focused, willing to adapt to change, self reliant and confident. They have been told that it will be hard to find jobs. This group could well be the largest generation of entrepreneurs. Because they are net-intelligent, they love to collaborate, work together and share information. After all, what good is knowledge and information if it cannot be shared?

Echo Generation - They Know What They Want

They want to make a difference and will not put up with being manipulated by the system or being taken advantage of. After all, they can easily organize on the net! This generation could become an extremely politically active group with significant clout and power. They believe the employer-employee relationship could be reinvented. When they think of employment, they see it as:

• Self-Employment.
• Contract work.
• Temporary work.
• Work from home.
• Contingent arrangement.
• Flexible and mobile.

Stimulate Them!

The echo generation is looking for challenging, exciting and stimulating opportunities. They need an environment of collaboration, and they will naturally develop. Remember, your human resources have a free will. They can up and leave and take their knowledge with them.

As a business owner, it is important to manage the knowledge as well as the information and data. Old style boomers that are technophobes managers will be washed away by a wave of media savvy, confident and peer-oriented workforce. Businesses must avoid this generational displacement. Either boomers will learn from the younger generation or be replaced by them.

This will also be a demanding generation of customers. They have knowledge and power, and they know it. It will not surprise me to see them demanding a portion of revenue generated from the sale of information that is gathered about them online.

I subscribe to everything (almost)

At last count I review, scan, and read about 80 + blogs, ezines etc. Why? Because every so often an article comes by that makes it all worthwhile.

I have been writing about Baby Boomers in Business and am thinking of expanding my swath a bit further to include demographics in general. Do you find this information helpful?

The story I read, was about Boomers Radio Habits, but I like what I am seeing in this chart - Internet gets more time from radio and TV.

Good news if you have a business blog or web site. Anyone out there still questioning whether you should have a business blog and web site?

Aging Workforce: Asset, Liability or Succession Opportunity?

Manpower suggests that using specialized retention and recruiting strategies will allow you to target the single largest available workforce segment – those over age 50. If you are looking for people to staff our business and you are ignoring the 50+ worker you could be in for a tough ride.

Training programs – Mature workers are lifelong learners, and programs that build skills and increase employment opportunities will positively impact employee engagement.

Flexible scheduling options – Studies confirm that non-traditional schedules are one of the top priorities for older workers. Policies that offer part-time, flextime, job sharing, project work or generous time-off plans allow those in their retirement years to have ample time for work and personal pursuits.

Job redesigns – While mature employees want to work, many would elect to bring value to an organization in a different capacity. Whether it’s less travel, fewer responsibilities or a decrease in physical demands, consider job accommodations in order to retain the institutional knowledge and skills of the most experienced employees.

Targeted recruiting strategies – As with any hiring plan, employers should consider how to reach people in the demographics that meet their needs, and older workers are no exception. Look to professional organizations, company-sponsored alumni groups and online communities for possible candidates. Via Aging Workforce

I would want to see what I could do to take advantage of this large labor pool before their Business Dreams and Retirement Collide.

What do you think? Are you now or will you use any of these strategies?

Baby Boomer Retirement Trend - Entrepreneur 2.0?

If you are 50+ and born between 1946-1964 and an active entrepreneur you are being called a Entre-Boomer and in a piece titled Going Your Own Way Entre-Boomers are discovering the world of entrepreneurship just as they are about to enter their retirement years.

Why the Strong Interest in Entrepreneurship?

Because many Boomers think that selling their experience via consulting as their best path through the entrepreneurship maze.

A 2005 Merrill Lynch survey found that the unpredictable cost of illness and health-care is by far boomers’ biggest fear. They are about three times as worried about a major illness (48 percent), their ability to pay for health-care (53 percent), or winding up in a nursing home (48 percent) as about dying (17 percent).

A Free Agent

There is no doubt that becoming a “free agent” and selling your services creates cash flow it is not a business model that will create wealth for most seniors. However, if you buy a business and then build an exit strategy it might be just the ticket to help you earn some extra income. Another option is to continue to operate a healthy business well into retirement.

In addition, a CGC analysis of government data shows that those 55 to 64 and older represent one of the fastest-growing groups of self-employed workers. Some 1.8 million American workers ages 55 to 64 are self-employed outside of agriculture, up 29 percent from 2000, according to the Labor Department. The number of do-it-your-selfers 65 and older has grown 18 percent to 756,000. And boomers 45 to 54 years old make up more than a quarter of the nation’s 9.6 million self-employed. Overall, boomers and older entrepreneurs now account for 54 percent of self-employed workers, up from 48.5 percent in 2000. Via Going Your Own Way

So if you have been thinking about making your hobby a business or your business into a hobby or just want to take a stab at the entrepreneurial game you are in good company.

Baby Boomer Entrepreneurs Making an Impact

Hugh Hefner may not be a Baby Boomer but USA Today thinks he is the poster boy for aging entrepreneurs. So why are baby boomers seeking self-employment at a time when they are supposed to be slowing down and enjoying life? According to USA Today it is because of:

• Corporate Layoffs: they would rather take the risk of owning a business rather than get forced into the job market after age 50.
• Shifting Values: they want more flexible schedules to spend time with aging parents or on hobbies while easing into retirement.
• Aging Population: The number of Americans age 50 and up will soar by 31 million by 2020, to 118 million, the Census Bureau predicts.
• Innovative Technology: Many start-ups by older entrepreneurs are one-person ventures in home offices with a dizzying array of technology that didn’t exist or was too pricey 20 years ago.
• Business Savvy: entering their 50s, leverage management skills and retirement benefits to invest in start-ups.

I am a baby boomer myself and enjoy coaching baby boomers who want to start or buy a business.

Un-Retirement: Small Business Trends: Baby Boomer Entrepreneurs and Work Life Balance

Anita Campbell writes Small Business Trends - Baby Boomer Entrepreneurs and Work Life Balance…

…not only is there a trend toward Baby Boomers undertaking new opportunities as entrepreneurs, but that in turn is giving rise to new opportunities for enterprising entrepreneurs to serve this huge demographic.

I first began watching this trend back in late 2004 when I was writing my first book, Tips and Traps When Buying a Business and again in my latest book, Tips and Traps for Writing an Effective Business Plan.

Research shows that more individuals are choosing a post-retirement career jump, new business ventures or skipping retirement all together. More baby boomers are seeing retirement as a lifestyle change and a new opportunity rather than the conclusion of a career, and nearly 70 percent report that they expect to continue working well into their retirement years, according to AARP surveys. Anita Campbell, founder and editor of Small Business Trends, has labeled the phenomenon “un-retirement” and says boomers are the driving force toward a new balance of work and leisure. Via Courant

With 70 percent working in retirement, many seeking new business ventures, and viewing this as a “lifestyle change” spells a real challenge for employers with baby boomer employees and an opportunity for business owners that are looking for buyers for their business because they will be looking to Buy a Business, Not Start a Business.

Baby Boomers Starting Real Businesses in Retirement

No surprise to me but Business Week says that Lure of Entrepreneurship Beckons Boomers and their observations include:

• Corporate Jobs Too Insecure.
• Business Experience Reapplied.
• Other Self-Employment Ingredients: pension cuts.
• 97% of baby boomers are in the top 50% of population by net wealth and are twice as likely to pursue self-employment.

Plus they have a total of eight in-depth articles about Baby Boomers foray into entrepreneurship and you can view my nineteen articles in Baby Boomer Business category.

[M]any boomers–or those 78 million Americans born between 1946 and 1964–are leaving corporate jobs to start their own businesses. And it’s not just because they’re ready to retire; though some have the time and money to try life as an entrepreneur, many don’t. They…are often worried about disturbing corporate trends like layoffs and pension cuts that are leaving many in their age bracket with a tough road through retirement.

“Baby boomers are looking at starting real businesses–looking for another 10- to 12- to 15-year career, God willing,” says Paul Magelli, senior scholar-in-residence at the Kansas City (Mo.)-based Kauffman Foundation. Via Entrepreneurial Mind from Business Week.

A Lesson in Demographics, Baby Boomers and Planning

I am refining my target market and adjusting my Coaching Practice to serve the Baby Boomer Business Owner marketplace and thought this would make for an interesting discussion. Try answering the questions at the end.

As of 2005 50% of the US population of was between age 50-74, (Source: AARP) and in Canada 2001 the baby boomers represented one-third of the total population (source: Statistics Canada).

Understanding the Age Progression Chart

I took the birth curve of the baby boomers and extended it forward to get a sense of the age progression of the baby boom generation. While actuaries would take issue with my methodology because it does not account for mortality it does provide a visual guide to understanding their ages and life style patterns.

Right now baby boomers range in age 40-59 and the baby busters (Gen X, range in between 27-41 years of age whereas, the children of the baby boomers are between 11-26 years of age.

I am a baby boomer (age 51), a third generation entrepreneur, and have been coaching business owners since 1991.

How I See the Baby Boomer Marketplace

I have made a decision to specialize my coaching practice to meet the needs of baby boomers, not only because it represents a significant business opportunity, but because baby boomer business owners have an opportunity unlike any other generation in history. They have the knowledge, experience, and many have the money - now they want the freedom that comes from owning a business. I hear them telling me that they want to own a business because they:

• Need Money: many baby boomers will live 25 years or longer in retirement some into their 90’s. That is a long time and will require a lot of money to be able to live the lifestyle to which they have become accustomed. Owning a business allows them to leverage their experience, stay active, and generate income.
• Personal Expression and Self-Actualization: on the older end of the baby boom (age 59) I hear baby boomers expressing the desire to own, operate, and manage a business. For them, it is as much about self-actualization as it is the challenge, and the opportunity to make decisions - to see their ideas gain acceptance in the marketplace.
• Start a Business: according to the AARP 17% of baby boomer business owners plan to start a business. The challenge for these new business owners is the same as any other, with one exception, they cannot afford to fail or loose money because they plan to use the proceeds from the new business supplement their income.
• Established Baby Boomer Business Owners: there are a huge number of baby boomer business owners who own a business and have a big problem. Their biggest asset is their business. Unfortunately, the cash they planned to use for retirement is trapped within the corporation. They could sell the business, but do not have a successor or a plan to sell the business plus who would they sell it to, a younger baby boomer or Baby Buster (aka Generation X)?
• Share Knowledge: there is another group of experienced business owners who are not ready to hang up their cleats quite yet. These seasoned entrepreneurs want the best of both worlds. They want the thrill of the hunt and the opportunity to make a difference using their business as a tool to make a social impact or statement.
• Buy a Business or Franchise: in many cases buying a business makes more sense than starting a business. Following the release of my book, Tips and Traps When Buying a Business I also released a report titled ‘15 Reasons to Buy a Business versus Starting from Scratch‘. For baby boomers looking to minimize risk and maximize return, buying an existing business makes a lot of sense.

Examining the Baby Boomer demographic would be incomplete without also looking at the impact of the Baby Busters (aka Generation X) and the baby boomers children the Echo Boomers.

The Baby Busters

The Baby Busters were born between 1966-1979 and range in age from 27-41 they are web savvy, mobile, and have the entrepreneurial bug just like the Echo Boomers (baby boomers children). Compared to the size of the baby boom this segment is relatively small.

Wikipedia has some interesting comments on Generation X (aka Baby Busters):

Sometimes criticized as “slackers”, they nevertheless were widely credited with a new growth of entrepreneurship and the resulting dot-com boom. These former latchkey kids may have remembered their self-oriented at-the-office-all-the-time-even-weekends parents, yet who were downsized. Gen Xers in the work-force then were ‘Work Hard, Play Hard’ employees (and business starters): During work hours, they highly productive, competitive self-starters and contributors; but then left the office promptly, to play-hard at the bar/hobby/recreation or secondary job or ongoing education. In some cases, the Play Hard activity then became their first activity; e.g. a successful band gig could go professional, an arts-andscrafts or technical hobby became business start-ups, or an ongoing education became an inter-company transfer/promotion from factory floor to a desk job.

Who are Echo Boomers?

They are the children of the baby boom and are known as Generation Y, the Echo Boomers, or the Millennials (choose your favorite label). They were born between 1977 and 2002. They are increasingly becoming known more and more as the Entrepreneurial or ‘E’ Generation. In The Secret To Recruiting Echo Boomers I document that this net-generation is curious, intelligent, focused, willing to adapt to change, self reliant and confident. They have been told that it will be hard to find jobs and are ready to pursue their dreams via entrepreneurial pursuits.

Change is Constant

Exactly how these generations will pursue business opportunities in the next decade is still up for speculation. Be sure about this, the changes from the Baby Boom will be swift as their numbers increase substantially between now and 2010.

My coaching services are designed to meet the needs of a dynamic market and the unique needs of the Baby Boomers - to maximize return on investment while minimizing the risk and enjoying the business of being in business.

Practical Application

What do you think of my plan and approach to the baby boomer market? What are the challenges and opportunities you see for yourself? What is your biggest concern?

Options for Baby Boomer Business Owners

The single largest demographic segment, baby boomers, are now between the age of 50-74. This represents a significant business opportunity look at these statistics:

• As of 2005 50% of the population was between age 50-74, (Source: AARP)
• A baby boomer turns 50 every 7.5 seconds.
• 1.5% or 480,000 of US businesses are given away (family, employees) every year. (source: Characteristics of Business Owners, US Census)
• 3.1% or 992,000 businesses change ownership each year (source: Characteristics of Business Owners, US Census)

Is there a Retirement Crisis in the Making?

Baby boomer business owners’ greatest problem is to figure out a way to retire and extract the equity they have built up in their businesses. For many baby boomers, that will mean selling their businesses and converting their equity into cash or retirement income.

The Sellers Concerns

A sellers greatest concern is how a buyer will finance the purchase of the business followed closely by making sure that the buyer is a suitable candidate and a good leader and whether they can get a good valuation of the business. They also spend a lot of time worrying that the business is too dependent on their leadership and involvement.

Most business owners are so highly involved in the operation of the business it is difficult for them to see how it could operate without them. Our coaching process helps business owners to put the systems, structure, and processes in place so they are free to sell the business, keep it, or grow their own successor.

What is a Succession Plan?

According to Wikipedia a succession plan is:

Succession planning is the process of planning appropriate action in the event that a key person within an organization is no longer available to the organization. Scenarios that cause or contribute to this key person no longer being available may be voluntary/anticipated, or involuntary/unanticipated. A “full succession plan” addresses both situations, while a “partial succession plan” addresses only one type of scenario or event.

Almost two-thirds (65%) of businesses have no succession plan and 28% stated they had “no time to deal with the issue” (source: CFIB, Succession Can Breed Success).

Supply and Demand

There is a 50% chance that the person you will be buying your business from is a baby boomer. They have a liquidity problem that is created by one simple economic principle: supply and demand.

Like anything else, supply and demand affects the sale price of a business. The more buyers (the greater the demand), the higher the asking price. Fewer buyers will result in lower sale prices. If baby boomer business owners all try to sell their businesses at the same time, there will be an oversupply of businesses for sale - meaning that asking prices will drop as finding a buyer becomes more difficult. The implications are vast. Without a succession plan or buyer waiting in the wings, baby boomers will struggle to get the full value out of their businesses. This will be bad for the baby boomers, but good for you as a potential buyer.

Options for Baby Boomer Business Owners

1. If they have not planned their business succession in advance, and they’re unwilling or unable to liquidate at a lower price, they may have to continue to work well into retirement. With post-retirement life spans of 25 years or more, baby boomers will need to keep working to ensure they have adequate retirement funds to maintain the quality of life they have become accustomed to.
2. If they have not saved enough money to fund that long retirement, baby boomers may decide to keep running their businesses into their retirement years. If this happens on a large scale, the supply of businesses for sale will drop dramatically, and prices will rise. This doesn’t mean that potential business buyers have no hope, but it does mean that you will have to get creative to find a business owner willing to sell you the business that is funding his or her retirement dreams.
3. Another option is to grow your own successor. As the labor market continues to tighten this option may become increasingly popular because it allows you to groom, train, and develop the ideal buyer for your business.

There’s no way of knowing for sure what will happen as baby boomers retire, but in any event their actions will impact the business landscape. For that reason, it’s important to keep this demographic in mind as you consider buying a business.

If you are a baby boomer business owner and are concerned how to:

• structure your business to enable your retirement.
• want to prepare your business and put it on the market.
• buy a business.
• learn how our coaching services can help you make more money and have more freedom.

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