What Do You Need to Do to Get Your Business Ready to Sell?

In his recent article in Smart Business entitled, “How to get your business, and yourself, ready for sale,” author Adam Burroughs explores the key points of getting your business ready to sell.  Burroughs points to the truism that, at some point, almost every business owner must sell his or her business.  For this reason, it is critical to think about what it takes to get your business ready to sell.  Simply stated, it is best to explore and plan for selling your business long before you actually need to place your business on the market.  Let’s explore some key points for selling your business.

Broadening Your Options

Burroughs interviews Scott McRill at Clark Schaefer Hackett.  McRill notes, “The sooner you think about your exit, the more options you’ll have for yourself and the business when the time comes.”  A savvy business owner will always want to give himself or herself as many options as possible. McRill wisely points out that early planning is key, and a failure to engage in early planning could lead to a lower selling price.  If you want to get the best price for your business, then planning for the eventual sale as far in advance as possible is a good move.

Planning in Advance

According to Burroughs, business owners should start planning to sell their business at least 2 to 3 years before they actually plan to sell.  Part of the reason for this is so that business owners will have enough time to make operational improvements designed to maximize the business’s overall value.

A Financial Review

At the top of every business owners “preparing to sell” list is to have a third-party review the business’s financial situation.  This is excellent advice for, as frequent readers of this blog know, any serious prospective buyer will look long and hard at your business’s financials.  Getting your business’s financial house in order means that you should turn to an accounting firm for help.  You’ll want to review financial statements for at least the previous 2 to 3 years. This will be a crucial step in arriving at your optimal valuation.

Burroughs points out that when it comes to selling a business, there are many variables that business owners often overlook.  At the top of the list is the management team.

Your Management Team

Prospective buyers can get very nervous about the stability of the management team once ownership has changed hands.  Often, the new buyer may only sign on the dotted line if the owner agrees to stay on after the sale during a transition period.  Having a competent and proven team in place, one that is dedicated to staying with the company will help you get your business ready to sell.

There are a lot of variables involved in preparing to sell a business.  The sooner that you get experts involved in the process, the better off you will be.  A business broker can serve as a guide – one that can point you in the right direction.  Find a broker with an abundance of experience, and you’ll have an invaluable ally who can help you navigate the process.  It can take a lot of time and effort to sell a business.  Working with a business broker can keep you from reinventing the wheel at every step of the process.

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The Year to Come?

Heading into 2020, it feels like a good time to share this infographic tweeted by MIT’s Sloan Management Review and created by futurist Amy Webb. Is your business poised to seize the [next] day? This graphic provides an actionable step-by-step guide to forecasting changes in the social, cultural, and economic landscapes that impact your business and preparing to take advantage of them. Obviously no predictive system is perfect, but it can be a helpful exercise to alternate your approach from time to time. Even if you’re not in big tech, it can’t hurt to consider your business’ and clients’ potentially shifting needs with a fresh perspective. Happy New Year and best wishes for a prosperous 2020!

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Encouraging Employee Engagement

Employee engagement is a hot topic in workplace research. According to a recent Gallup survey,

“The percentage of ‘engaged’ workers in the U.S. — those who are involved in, enthusiastic about, and committed to their work and workplace — is now 34%, tying its highest level since Gallup began reporting the national figure in 2000. The percentage who are ‘actively disengaged’ — workers who have miserable work experiences — is now at its lowest level (13%), making the current ratio of engaged to actively disengaged employees 2.6-to-1 — the highest ever in Gallup tracking. The remaining 53% of workers are in the ‘not engaged’ category. They may be generally satisfied but are not cognitively and emotionally connected to their work and workplace; they will usually show up to work and do the minimum required but will quickly leave their company for a slightly better offer.”

While the engagement increase is good news, it’s still quite likely that something like two thirds of your team is not at peak potential.

Does it matter?

Emphatically yes, according to Kevin Kruse, author of Employee Engagement 2.0. In this Forbes article, he presents arguments from 28 studies detailing the positive impacts of employee engagement. Employee engagement correlates positively to improvements in service, sales, quality, safety, retention, and profit and share holder return.

For instance,

A study of 64 organizations revealed that organizations with highly engaged employees achieve twice the annual net income of organizations whose employees lag behind on engagement. (Source: The Impact of Employee Engagement. Kenexa)

Gallup’s research finds that 70% of the variance between engaged and disengaged teams comes down to management and/or leadership. This has some big ramifications if you are a business owner. It’s probably worth your while to seriously consider the culture of your business and how to facilitate a sense of commitment and motivation in your team.

How to go about this?

Purpose emerges in the research as a crucial factor. Employees report far higher levels of engagement when they understand the mission of the company and feel their work advances the cause in a meaningful way. They also need to feel a pathway exists for them to learn, develop new skills, and advance personal goals. According to Deloitte,

We need to make sure jobs are meaningful, people have the tools and autonomy to succeed, and that we select the right people for the right job. This is anything but a simple undertaking…We each thrive on our ability to contribute to a greater good, and management’s job is to set goals, support people, coach for high performance, and provide feedback to continuously improve.

Training, trust (and the other side of its coin, accountability), team, and work-life balance all contribute to a sense of fulfillment as well.

Leadership strategy expert Brent Gleeson outlines these check point questions that your team should be able to answer positively:

  • I know what is expected of me and my work quality.
  • I have the resources and training to thrive in my role.
  • I have the opportunity to do what I do best – every day.
  • I frequently receive recognition, praise and constructive criticism.
  • I trust my manager and believe they have my best interests in mind.
  • My voice is heard and valued.
  • I clearly understand the mission and purpose and how I contribute to each.
  • I have opportunities to learn and grow both personally and professionally.

Onward and Upward

While valuable, facilitating change in your work culture is not a simple undertaking. Gleeson warns that leaders should be prepared for challenges in trying to cultivate work culture. “Change is hard, takes longer and usually has higher hard and soft costs than managers and leaders generally plan for. Change can be intensely personal for employees, causes fear and can actually reduce productivity when approached improperly,” he says.

But don’t be daunted, especially if you are planning to sell your business at some point. A well-developed team who will support the mission even when ownership conveys is a major selling point.

 

 

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Albuquerque “Surging” Ahead: Top 50 Cities to Start a Business in 2020

Quite the week for Albuquerque, which made the Top 50 U.S. Cities for Starting a Business in 2020, according to a study conducted by Inc. and entrepreneurship researchers Startup Genome. These “Surge Cities” leverage local assets, human capital, and development strategy to drive success, with interesting lessons to be learned in each case. Entrepreneurship through acquisition can be a savvy path to business ownership, side-stepping some of the associated risk. Learn about about businesses for sale in Albuquerque and opportunities to join the community of business owners who are enjoying the city’s advantages!

Here’s what Inc.’s write up has to say:

Startups are growing in this desert community thanks to high-density work spaces.

No. 12 Rate of Entrepreneurship; 19 Net Business Creation; 29 Wage Growth

The economic development puzzle is coming together in New Mexico’s largest city, with a shiny new innovation zone downtown called InnovateABQ. It includes a startup incubator, an 11,000-square-foot maker space, and tech transfer offices from all of the area’s research universities and national labs. It also boasts a state-run $20 million Catalyst investment fund designed to bolster local VC investment that’s already seeing results. One promising example, which has received Catalyst backing, is advanced medical lab startup BennuBio. Licensing technology from the University of New Mexico, the company develops and prototypes instruments on the InnovateABQ campus to measure the characteristics of cells. “We’re in the middle of the desert, so we’re resource constrained,” says John Freisinger, InnovateABQ’s executive director. Now with a physical space to bring together entrepreneurs and support organizations, he notes, collaboration within the startup community is getting more efficient. “It’s one stop and you can see what’s available,” he adds. Though Albuquerque’s startup ecosystem is still young, it enjoys a higher degree of founder connectedness than the global city average, according to a 2018 report from innovation policy startup and Inc.’s Surge Cities partner Startup Genome. That’s key to building a strong long-term entrepreneurship culture. –Lindsay Blakely

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Find Work-Life Balance in Albuquerque

More accolades for Albuquerque! The Duke City ranks 11th for work-life balance in American cities. A recently published study compared cities across data representing work intensity, societal/institutional support, and city livability in order to determine where people do—and do not—enjoy well-rounded lifestyles. This is a handy compilation if you’re involved in site selection or debating where to buy a business.

The introduction to the study, by security company Kisi, states,

“We know first-hand how much of a difference it makes to work smarter rather than harder. Whether in or out of the office, we understand the value of time and believe that dedicating too much of it to your job interferes with life outside of work, and vice-versa. To explore this topic further, we conducted a study determining the cities whose residents have the most well-rounded work-life balance, in terms not only of work intensity, but also their livability and the well-being and rights of their inhabitants.”

According to the study, Albuquerque residents work an average of 42.3 hours a week, take 9.4 days of vacation per year, and start work relatively gently around 10 am. Burqueños’ Happiness Score is 90.7 out of 100. Not bad at all!

The top 5 American cities for work-life balance were San Diego, Portland, San Francisco, Minneapolis, and New York.

The most overworked cities were Washington, DC, Houston, Atlanta, Seattle, and Chicago.

While Abq just missed the top ten for work-life balance (so close!), it’s worth noting the city did make the top ten for affordability in a recent study by Move.org. By comparison, many of the best rated work-life balance cities are in the top five most expensive.

Significantly, Albuquerque’s low cost of living contributes to its also being ranked one of the top five cities in which to build wealth by pay experts Salary.com. This ranking, “based on census data and Salary.com analysis, focused on local salaries, the cost of living, and unemployment. Secondary factors, such as diversity of the local economy, residents’ education, percentage of population below poverty level, and commute time were also measured,” according to CNN Money.

If you’re looking for the right place to buy a business, Albuquerque also offers an extremely supportive policy and economic environment.

“The Southwestern city is witnessing an entrepreneurial renaissance with the help of startup-friendly culture, excellent universities and a great cultural scene for that ever-elusive work-life balance [told ya!]. Albuquerque’s tech scene is so vibrant that even Facebook is setting up an outpost in the area, and the city has seen a nearly 10% increase in average salaries over the last four years. With STEM jobs galore, Albuquerque also earned a spot on our 2018 list of the Top 10 Best Cities for STEM Workers,” Claire Hannum reports for Livability.

Learn more about opportunities and Albuquerque businesses for sale here!

 

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Multiples, Demystified

Multiples are tricky things to figure out when you’re valuing a business for sale. Lots of opinions are floating around, most stemming from imperfect information. Uncle Bob’s golf buddy sold his widget store for a million bucks based on a multiple of five! Such “buddy wisdom” can lead you astray. Unrealistic expectations can result in a price point that the market simply won’t support. Your business languishes with little to no buyer activity.

First Things First

So, what is a multiple to begin with? Basically, a multiple is a number by which you multiply the economic benefit enjoyed by the owner of a business. With large businesses, this benefit is frequently expressed as EBITDA, an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization. While EBITDA makes sense in the M&A realm, where businesses generating $10 million or more in annual sales are exchanging hands, EBITDA isn’t always the best fit with for small businesses. Besides the difference in sheer size, the owners’ group frequently doesn’t play an active, hands-on role in the operation of these larger businesses. Think passive investors.

In contrast, Main Street businesses are frequently helmed by an owner/operator. It’s also relatively common for the owner/operator to run some personal expenses through the business. These could include their personal health and life insurance, the lease expense for a personal vehicle, which they don’t plan to convey with the sale of their business, or the cell phone plan for their family. After all, such practices are one of the benefits of being a small business owner. In essence, SDE (Sellers Discretionary Earnings, also known as Cash Flow) is EBITDA with a few adjustments, including owner’s compensation and personal, discretionary expenses.

There’s more to SDE than this, but that’s it in a nutshell. While multiples can also be applied to the business’ Gross Revenue, SDE shows how much income a new owner will have to live on and pay off pay debt service incurred by taking out a loan to secure the purchase. When done right, SDE is a buyer’s potential Return on Investment for a given business.

Multiples in Action

How is the multiple determined and used, besides Uncle Bob’s questionable tips? Let’s take a simplified example.

You would like to sell your small to medium-sized business, Widgets R Us. What price should you ask?

Ideally, there’s a lot of market data to inform this decision. In the field of comparable widget stores that have sold (based on sector, size, revenue, location, etc.) what is the average sales price? Say it’s $300,000.

Now, what’s the average SDE of those widget businesses that have sold? Say that is $100,000.

The multiple is the result of dividing the average price by the average SDE. In this case, $300,000/$100,000 = 3.

Let’s further say your business’ average SDE over the last three years comes out to $130,000 because your sales team is really good at selling widgets. Nice! The price for your business would be $130,000 x 3 = $390,000.

Ze Plot Thickens

That is a pared down example. In real life, the process can be complicated by the quality (or lack thereof) of the financials, market trends, client concentration, how dependent the business is on you, and a host of other factors.

Keeping with the same example above, let’s say that you’re the genius behind your business’ eye-popping widget sales. Over the years, you’ve cultivated relationships with key clients who refuse to deal with anyone else at your widget shop. How does this effect the transferable value of your business? You’ll need to wrestle with such questions.

But Wait, There’s More…

Also keep in mind that multiples, no matter how fact-based, are not the end-all, be-all. A sophisticated buyer will also take into consideration the income they’ll be earning, after debt service, based on their down payment. This is known on as the Internal Rate of Return. An experienced broker can work with you to understand and interpret all this information. You can drastically help this process by having well organized, professionally-prepared financial records. At a minimum, we like to analyze the most recent three years of P&Ls, tax returns and a current balance sheet to get a clear picture of the performance of your business. Buyers want to study these in-depth, often bringing in their CPA or financial advisor, to understand what they’re potentially getting into!

If there isn’t a lot of useful data to go on, there are some tricks of the trade that are based on way more experience than Uncle Bob’s sample size of one or two stories. Brokers have access to information that isn’t available to the general public. They frequently have experience selling businesses similar to yours. The best sales data aggregates the actual sales price of businesses provided by financial institutions and certified business appraisers. They check and double-check the information that goes into making up the SDE number.

Onward!

It’s well worth your while to consult a knowledgeable expert to make sure you’re valuing your business at an optimal price to both sell the business and maximize your achievable profits.

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Is Your Business Ready to Sell?

“Even if you build a business with zero intention of selling it for a big payday, and even if you never do actually sell, you should still build your business as if you are going to sell it someday. Building a business with this mindset will make the entire operation run more efficiently—you’ll be able to see how your business is trending overall, maintain a cleaner financial picture, and implement better standard operating procedures,” writes Gregory Elfrink in this Foundr article.

It’s never too soon to prepare. There are all kinds of reasons to sell a business – retirement, cashing in on ROI, moving on to the Next Big Thing. Whatever your reason, you’ll want to maximize your profit. This requires preparation and forward thinking, and we can help.

Here are some areas to consider to make sure your business is sellable.

Money Talks

Buyers want to know they’ll be getting a business that will allow them to make money. The best way to prove your business fits that ticket is to have great financials. This means

  • Records over at least 3 years if possible
  • Strong (and, ideally, improving) cash flow, Seller Discretionary Earnings, and gross revenue
  • Well organized, professional documentation

Buyers understandably balk at weird numbers. If you have missing information or sloppy bookkeeping, they wonder what might be wrong or hidden. Consistent, professionally prepared P&Ls and taxes tell the most compelling story.

Value Proposition

Competitive advantage increases the value of your business. “If your competitors can’t match your differentiation without investing time, money and effort, buyers will pay more to have your edge,” writes Kevin Daum for Inc.

Standing out can be easier within a niche. “To maximize the value of your business, you are better off focusing on one or two areas that your business can do really well.  It’s much easier to duplicate your process with others this way, and it also increases the quality of the work you do as you can train and hire specialists as opposed to generalists,” says Shawn Sparks in this ThinkAdviser piece.

Onward and Upward?

Growth potential is another big factor. Do you have ideas to offer a buyer about how he or she might grow the business? Maybe there are untapped markets? Unexplored marketing channels? Tech-paved pathways to scale?

Identity Crisis

The success of the business can’t be wrapped up in your knowledge, relationships, charisma, etc.  A seller may support new ownership for a transition period, but make sure you have clear, accessible documentation on all operating procedures. If you have experienced managers on your team who can take the reins, all the better. A well-trained staff who will stay with the new owner is also helpful.

A (terribly burdensome!) way to vet your business’ ability to function without you is to take a vacation for a while. See where your systems snag in your absence and respond accordingly—rested and tan.

Distribute Your Eggs Over Enough Proverbial Baskets

Diversity in your client base and supply is important.  Customer concentration is a red flag to potential buyers. A company with more than 15 percent of its revenue dependent on one client is vulnerable. That client might leave shortly after you sell your business. A buyer will recognize this attrition risk. Follow these tips to minimize concentration trap for the potential buyer and better position your business to sell at a premium value. 

Likewise, multiple suppliers for all your products are important. According to Elfrink, this adds value in the following ways:

  • Profit Margin Increase: [Foundr has] had ecommerce sellers say flat out that they increased their profit margins by double percentage points simply by finding a different product supplier that gave them a much better deal.
  • Avoid Shutdowns: What happens if you only have one factory making your product and that factory suddenly goes out of business? You’re out of luck. You need backups for emergencies like this. Without a good supplier, you are effectively out of business.
  • Avoid Suppliers Getting Leverage on You: The supplier knows that without a product, you have nothing to sell, and they may try to increase their price over time, thinking that you will just accept the price hike. Having multiple suppliers will greatly increase your ability to negotiate for better terms.

Recurring Revenue

High-volume, reoccurring revenue indicates stable, ongoing success. Customer renewal saves on acquisition, indicates a satisfying product or service, and provide a bankable model, according to “exit guru” John Warrillow. “If you currently eat what you kill, find a way to make your product or service renewable and addictive,” he suggests.

Timing

So many factors are involved in determining if the time is right to sell your business. What are the prevailing market conditions? How are your financials trending? Do you have everything in ready, in ideal order to maximize your profit? A business broker can help identify and answer all the questions you should be asking.

Contact Us to Learn More

If you’d like to learn more or sell a business, contact us! We can help you assess all these criteria and perform a valution to determine the right price to bring your business to market.

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Stories We Tell (About Our Brands)

A recent article at First Round discusses the importance of a good story. Narrative is one of the most relatable ways to communicate your identity and value—as a business, as a leader, as a person—to customers, employees, or investors. That communication establishes connection and builds genuine trust and excitement.

The article goes into lots of juicy detail. Here is quick summary, with some reflections, of key takeaways and actionable tips.

Pass the “Bar Test”

Would someone get your point and pay attention to you if you were telling your story at a bar? Your message should be concise and interesting enough that your audience sustains engagement, even in the face of distraction (be it the temptation to check emails about the next meeting or order another round). Nicole Kahn, formerly Senior Director of IDEO’s Design for Change Studio, says a compelling story should include these key elements:

  • A through-line that connects the dots
  • Anecdotal descriptions that draw the listener into the story
  • Moments of reflection that give your audience cues to linger on a particular thought or feeling

Language like “At this point, we often hear questions like X” or “And here I think Y is so important” can help guide your audience to the points you want them to consider.

Be Persuasive

Persuasion is strongest through clear messaging.

“Because they’ll remember random parts, you want to construct a message that — when sampled at any point — reinforces your argument and remains persuasive,” says product leader for Google Chrome Tyler Odean. “Keep it to the highlight reel and stick to a very short, simple message that you repeat in different ways again and again. When there are fewer things to remember, your audience is more likely to remember what matters.”

The Failure Story

There has been a lot written on the topic of leveraging the power of failure lately. Read more here.

Story as Culture

Molly Graham, former Culture and Employment Branding Manager for Facebook, suggests writing your own story—and sharing it with your team—to focus on what your stand for and reinforcing people’s association between you and those values.

“It can be four sentences or one paragraph or 3 values. But it needs to make it clear what you are and what you aren’t as a company,” says Graham. It also needs to give you language that you can re-use again and again in the press, in hiring, in product announcements, and at all-hands meetings to reinforce what your company is about, who you want to attract, and why you’re doing what you do.

Perspectives on Position

“Brand positioning” tells the story of what you’re building, why, and for whom.  Lean Branding author Laura Busche defines brand as “the unique story that consumers recall when they think of you.” She continues, “This story associates your product with your customers’ personal stories, a particular personality, what you promise to solve, and your position relative to your competitors. All human aspirations are opportunities for brands to build relationships.”

That last line might sound a little intense, but this opportunism need not be calloused. Listening to the stories of customers’ aspirations can help your business sincerely respond to their goals. Storytelling goes both ways. Good listeners make better storytellers because they have learned more about their customers’ (also, just generally human) experience.

Startup adviser Gibson Biddle recommends you gather and compare as many perspectives as possible to “capture and articulate” what others value about your company. Specifically:

  • What is it?
  • How does it improve customers’ lives?
  • What is its personality?

If the team lands on a different set of descriptions than you’d hope, try to answer why. Also try to answer the question, “What word do you want customers to associate with your brand?” Innovative? Healthy? Reliable? Efficient? Whatever it is, consider what your business will have to do over the next ten years in order to “own” that word.

Hero’s Journey

Pixar veteran and Apple Manager Oren Jacob reminds us that great stories have structure—a beginning, middle, and end. “The best meetings are the ones where the [stakeholders] in the room want to take this journey with you. To ensure this, you have to hit all the stops they’re anticipating. Lay out the map for them at the beginning: ‘I am going to talk about engagement; I am going to talk about monetization; I am going to talk about our team and features and potential competitors,’” Jacob says.

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Motivational Failure

Some clichés endure for good reasons. Cat posters exhorting us to “hang” in there adorably/annoyingly acknowledge a universal truth: you’re going to mess up.

Own it. Learn from it. Use it to grow and teach others.

A recent First Round article highlights the importance of stories. What is a compelling example of a time you failed, persevered, and prevailed? As a leader, how can you share that experience with your team in a way that encourages courage?

Communicating vulnerability can make you more relatable and can instill your team with the confidence to take risks. Don Faul, CEO of Athos and formal Pinterest Head of Operations, suggests crafting language around failure and inspiration carefully in advance. It’s important, he says, to make sure the story leaves the listener with a sense of potential. Faul also recommends experimenting on one or two trusted colleagues and tweaking your story based on their response. “It gives you a chance to strike your own balance between vulnerability and confidence.

This is an important point. Keep in mind the value in these stories is to help build confidence from a feeling of empathy, not to wallow in doubt! In another article, Senior Gametime Strategist and Fast Company writer Jackie Berkery suggests “vulnerability in moderation.”

The benefits of vulnerability get sidelined when your team hears you doubt your own management skills. Most of the time, your team needs someone who can inspire confidence, display composure and consistency, and lead by example. While there’s still ample room for showing empathy, owning your mistakes, and developing an approachable, open management style, expressing doubt in your abilities as a manager is not an effective strategy.

If “motivational failure” seems like an oxymoron, the NY Times recently published a piece with helpful examples. Researchers from Northwestern University compared two cohorts of young scientists. The groups were statistically identical except that one  had narrowly succeeded in a attaining a National Institutes of Health grant whereas the other had narrowly failed. Ten years later, the initially less successful group had gone on to more impactful careers. After controlling for various factors, the research team concluded that the higher performing group’s later success was causally connected to its initial setbacks.

The same article also suggests keeping a “failure résumé.” Despite seeming a bit daunting, such a record can be a powerful tool to track your lessons and progress. It can also,  somewhat ironically, help to build confidence. Dr. Melanie Stephan, a lecturer at Edinburgh Medical School and the first to popularize the failure résumé says, “Sometimes I look back on them and see how much I’ve actually struggled to be where I am. That’s a powerful reminder that I deserve to be here.”

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Millennial Money

New Mexico is moving up in the ranks of states for millennials to live, according to WalletHub—all the way from last place to second to last place! The penultimate spot does not tell the whole story, though.

Albuquerque is a pretty great place for millennials, in fact. The low cost of living, proximity to gorgeous outdoor scenery and recreation, and rich culture contribute to a high quality of life. The burgeoning film and tech industries are creating jobs and contributing to the “cool factor,” and supportive economic policies make it an opportune place to run a business.

According to Albuquerque Economic Development, “The region has a favorable ratio of residents in the key working age group of 20-34 years. Current estimates show that 19 percent of the population is in this key age bracket, compared to the national average of 18 percent. Albuquerque’s 20-34-year-old category is also projected to expand by a greater rate than the national average.”

This matters, even if you eschew avocado toast and Instagram, because millennials are a crucial market. They are projected to become the largest generation this year and currently represent 21% of all discretionary spending in the United States.

CNBC summarizes a recent report by Coldwell Banker Global Luxury and WealthEngine that studied some of the economic and life choices of “millennial millionaires”—of whom there are apparently about 618,000.

The population of wealthy young people is growing, the report finds. And they’re getting richer: “By 2030, millennials will hold five times as much wealth as they have today, and are expected to inherit over $68 trillion from their predecessors in the Great Transfer of Wealth.”  The “Great Wealth Transfer” refers to the trillions of dollars that will be passed down to millennials from their baby boomer parents, who are considered the wealthiest generation in history.

The same study also found that millennials are choosing to live in more affordable markets and second-tier cities where it’s easier to get ahead financially. As we’ve reported, Albuquerque ranks in the top 10 affordable cities and top 5 for building wealth.

So factor millennial spending power into Albuquerque’s phenomenal economic growth potential. If you’re a millennial thinking about where to move,  take that WalletHub report with a grain of salt. And read about opportunities to own an ABQ business here.

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