Generations, Growth, and Gaps

Big changes are on the horizon for local businesses, and they’re coming fast. By 2030, many Baby Boomers—who currently hold important roles and own established businesses in our communities—will be stepping down. This demographic shift is a huge deal for our local economies.

A 2023 study found that over 25,000 businesses in Los Angeles are owned by Baby Boomers. If these businesses don’t find new owners, they could simply vanish. This could trigger significant economic disruption, showing up as widespread supply chain issues, increased unemployment, lost tax revenue, and a decline in property values. These businesses are the backbone of how money is made, jobs are created, and goods are traded in our communities.

However, every crisis brings an opportunity. This upcoming generational shift paves the way for Gen X and Gen Z to step into leadership roles within these companies. It offers them a chance to acquire legacy businesses and innovate, transforming them into robust companies capable of sustaining communities for decades to come.

Yet, new opportunities often come with challenges. A primary one is the differing work preferences of Gen X and Gen Z. Gen X typically values stability and a healthy work-life balance, while Gen Z prioritizes flexibility, authenticity, and mental well-being at work.

For businesses to truly succeed, Gen X and Gen Z really need to team up. Gen Z is fantastic with computers and new technology. They can bring fresh ideas that make older businesses, many started by Baby Boomers, run better and faster. By working closely with Gen Z, Gen X can also help ensure these businesses deliver top-notch quality. While Gen Z is used to things moving quickly due to instant-gratification business models and AI tools like ChatGPT and Gemini, they can learn to focus on efficiency over just speed to create products and services that are truly valuable and sustainable.

You might ask, “Why would I buy an old business instead of starting a new one?” Here’s why it’s a great idea: it’s like getting a head start with endless possibilities! These kinds of businesses often come with years of customer reviews, existing staff, established procedures, and a built-in customer base that knows and trusts them. This gives you a strong foundation to make the business even bigger. Some of these businesses might even be making money right away, meaning you start earning from day one! Others might just need some fresh ideas or updated processes to thrive.

It’s already 2025, so we need to move fast! It’s vital to ensure our communities and businesses stay strong for a long time. This includes successfully passing down businesses that our parents and grandparents started.

Honing your craft and finding what works for you will take you far in the coming years. Are you connecting with other business owners who can offer supportive services? Are you partnering with complementary brands? Are you thinking creatively about new opportunities? If you’re an expert in areas like finance, law, or franchising, now is the time to refine your skills and explore your capacity to expand. Also, make sure to connect with others, even those in different industries. There’s power in collaborating and learning from the experiences of others who can help you grow and elevate your brand.