ENDrepreneurs and the future of small businesses | Nancy Forster-Holt | TEDxURI

14 years ago my husband Steve and I

14 years ago my husband Steve and I bought a business it’s Shah and Tennie

bought a business it’s Shah and Tennie

bought a business it’s Shah and Tennie the second oldest manufacturer of marine

the second oldest manufacturer of marine

the second oldest manufacturer of marine products in the United States 158 years

products in the United States 158 years

products in the United States 158 years old we make wooden oars and paddles and

old we make wooden oars and paddles and

old we make wooden oars and paddles and masts and flag poles and they’re

masts and flag poles and they’re

masts and flag poles and they’re gorgeous and then they hide in plain

gorgeous and then they hide in plain

gorgeous and then they hide in plain sight all around the world in boat yards

sight all around the world in boat yards

sight all around the world in boat yards and marinas and camps our flag poles

and marinas and camps our flag poles

and marinas and camps our flag poles were in the movie Lincoln our oars are

were in the movie Lincoln our oars are

were in the movie Lincoln our oars are in the gondola boats at the Venetian

in the gondola boats at the Venetian

in the gondola boats at the Venetian Casino hiding in plain sight so where we

Casino hiding in plain sight so where we

Casino hiding in plain sight so where we were that we were the average age of

were that we were the average age of

were that we were the average age of people who start or buy a business and

people who start or buy a business and

people who start or buy a business and as you can imagine the discussion starts

as you can imagine the discussion starts

as you can imagine the discussion starts with our work experience what do we know

with our work experience what do we know

with our work experience what do we know what skills do we have we were

what skills do we have we were

what skills do we have we were definitely naive and I know that helped

definitely naive and I know that helped

definitely naive and I know that helped a lot but it’s such a special company it

a lot but it’s such a special company it

a lot but it’s such a special company it had good bones and a great reputation

had good bones and a great reputation

had good bones and a great reputation but it was frayed at the edges its owner

but it was frayed at the edges its owner

but it was frayed at the edges its owner Paul was in his 70s and he had owned the

Paul was in his 70s and he had owned the

Paul was in his 70s and he had owned the business for more than 30 years he

business for more than 30 years he

business for more than 30 years he needed to sell it in order to retire but

needed to sell it in order to retire but

needed to sell it in order to retire but he hadn’t thought about that hadn’t

he hadn’t thought about that hadn’t

he hadn’t thought about that hadn’t planned to couldn’t picture life beyond

planned to couldn’t picture life beyond

planned to couldn’t picture life beyond owning the business and he said to us I

owning the business and he said to us I

owning the business and he said to us I didn’t have an exit strategy I had a

didn’t have an exit strategy I had a

didn’t have an exit strategy I had a heart attack well he did not sugarcoat

heart attack well he did not sugarcoat

heart attack well he did not sugarcoat that one bit but we thought that kind of

that one bit but we thought that kind of

that one bit but we thought that kind of admission was unique to him but it’s not

admission was unique to him but it’s not

admission was unique to him but it’s not in surveys many business owners will say

in surveys many business owners will say

in surveys many business owners will say that not only is the business their job

that not only is the business their job

that not only is the business their job but it’s also their retirement plan so

but it’s also their retirement plan so

but it’s also their retirement plan so they will need to sell it in order to

they will need to sell it in order to

they will need to sell it in order to retire and that is about seven years

retire and that is about seven years

retire and that is about seven years later than a typical employees

later than a typical employees

later than a typical employees retirement if they can even find a buyer

retirement if they can even find a buyer

retirement if they can even find a buyer the owner will likely have to finance a

the owner will likely have to finance a

the owner will likely have to finance a portion of the sale so this perfect

portion of the sale so this perfect

portion of the sale so this perfect storm is called income and wealth

storm is called income and wealth

storm is called income and wealth vulnerability translation all your eggs

vulnerability translation all your eggs

vulnerability translation all your eggs are in one basket so I named this

are in one basket so I named this

are in one basket so I named this unnamed group and tripping or aging

unnamed group and tripping or aging

unnamed group and tripping or aging business owners who are near the end of

business owners who are near the end of

business owners who are near the end of their association with their business

their association with their business

their association with their business there are a lot of us and we hide in

there are a lot of us and we hide in

there are a lot of us and we hide in plain sight to 10,000 baby boomers

plain sight to 10,000 baby boomers

plain sight to 10,000 baby boomers turned 65 every day in the United States

turned 65 every day in the United States

turned 65 every day in the United States at 51%

at 51%

at 51% of all small privately held businesses

of all small privately held businesses

of all small privately held businesses are owned by someone over the age of 50

are owned by someone over the age of 50

are owned by someone over the age of 50 and that age is getting older too

and that age is getting older too

and that age is getting older too since younger people aren’t starting

since younger people aren’t starting

since younger people aren’t starting businesses in the numbers that they used

businesses in the numbers that they used

businesses in the numbers that they used to

to

to due to the burdens of student loan debt

due to the burdens of student loan debt

due to the burdens of student loan debt so in my research I have found that the

so in my research I have found that the

so in my research I have found that the enterpreneurship the unchartered waters

enterpreneurship the unchartered waters

enterpreneurship the unchartered waters can result in some of the riskiest times

can result in some of the riskiest times

can result in some of the riskiest times in a business owners life and like many

in a business owners life and like many

in a business owners life and like many people you might have assumed the

people you might have assumed the

people you might have assumed the Entrepreneurship was more risky right

Entrepreneurship was more risky right

Entrepreneurship was more risky right the early days yeah that’s a very risky

the early days yeah that’s a very risky

the early days yeah that’s a very risky time we all know those odds of success

time we all know those odds of success

time we all know those odds of success are low but if there’s time to recover

are low but if there’s time to recover

are low but if there’s time to recover from an early failure or to make a

from an early failure or to make a

from an early failure or to make a course correction it probably isn’t the

course correction it probably isn’t the

course correction it probably isn’t the riskiest and on the way to making that

riskiest and on the way to making that

riskiest and on the way to making that first sale startups do get a lot of

first sale startups do get a lot of

first sale startups do get a lot of resources and attention including

resources and attention including

resources and attention including workshops accelerators and sometimes

workshops accelerators and sometimes

workshops accelerators and sometimes even and advisers and investors who want

even and advisers and investors who want

even and advisers and investors who want to get in early here’s what Paul knew

to get in early here’s what Paul knew

to get in early here’s what Paul knew that going into business at something

that going into business at something

that going into business at something you’re good at isn’t that hard but

you’re good at isn’t that hard but

you’re good at isn’t that hard but getting out hole 30 years later is hard

getting out hole 30 years later is hard

getting out hole 30 years later is hard for many business owners retirement will

for many business owners retirement will

for many business owners retirement will be their one and only exit from the

be their one and only exit from the

be their one and only exit from the business and they’re not sure how or

business and they’re not sure how or

business and they’re not sure how or when to do that so without an obvious

when to do that so without an obvious

when to do that so without an obvious successor then more risk will come

successor then more risk will come

successor then more risk will come closer to the last sale when you’re more

closer to the last sale when you’re more

closer to the last sale when you’re more likely to be alone out of time and

likely to be alone out of time and

likely to be alone out of time and uninteresting in a country that loves it

uninteresting in a country that loves it

uninteresting in a country that loves it startups what an opportunity though hmm

startups what an opportunity though hmm

startups what an opportunity though hmm for communities to engage in discussions

for communities to engage in discussions

for communities to engage in discussions about business transition and I’m

about business transition and I’m

about business transition and I’m involving all of you oh yeah we’re

involving all of you oh yeah we’re

involving all of you oh yeah we’re rowing together because you either know

rowing together because you either know

rowing together because you either know a pole you work for a pole or maybe you

a pole you work for a pole or maybe you

a pole you work for a pole or maybe you are Paul and you know it’s different if

are Paul and you know it’s different if

are Paul and you know it’s different if an employee wants to test out retirement

an employee wants to test out retirement

an employee wants to test out retirement they can work part-time or seasonally in

they can work part-time or seasonally in

they can work part-time or seasonally in a bridge job it’s really popular for

a bridge job it’s really popular for

a bridge job it’s really popular for retirees and it’s a win for companies

retirees and it’s a win for companies

retirees and it’s a win for companies too but it’s different for the owner

too but it’s different for the owner

too but it’s different for the owner they can’t count on ramping down like

they can’t count on ramping down like

they can’t count on ramping down like that so I’d like to see entrepreneurs

that so I’d like to see entrepreneurs

that so I’d like to see entrepreneurs talking earlier about exiting their

talking earlier about exiting their

talking earlier about exiting their business while there’s time for

business while there’s time for

business while there’s time for decisions and advice that can add value

decisions and advice that can add value

decisions and advice that can add value I know I know it’s kind of icky it’s

I know I know it’s kind of icky it’s

I know I know it’s kind of icky it’s like asking the newly married couple

like asking the newly married couple

like asking the newly married couple wins the divorce and that’s rude that’s

wins the divorce and that’s rude that’s

wins the divorce and that’s rude that’s rude but this is a commitment for better

rude but this is a commitment for better

rude but this is a commitment for better or for worse entrepreneurship is small

or for worse entrepreneurship is small

or for worse entrepreneurship is small business strategy and retirement

business strategy and retirement

business strategy and retirement planning small firm finance and personal

planning small firm finance and personal

planning small firm finance and personal financial literacy all of that can be

financial literacy all of that can be

financial literacy all of that can be taught and learned what’s not taught

taught and learned what’s not taught

taught and learned what’s not taught what is learned business owners

what is learned business owners

what is learned business owners mortality the power of their attachment

mortality the power of their attachment

mortality the power of their attachment to the company and their identity that

to the company and their identity that

to the company and their identity that comes from it Steve and I love the

comes from it Steve and I love the

comes from it Steve and I love the business but we ask and he works there

business but we ask and he works there

business but we ask and he works there but we ask how long can you do this

but we ask how long can you do this

but we ask how long can you do this Steve and we think we have a plan but we

Steve and we think we have a plan but we

Steve and we think we have a plan but we sure do understand how Paul didn’t so

sure do understand how Paul didn’t so

sure do understand how Paul didn’t so the European Union is starting to get

the European Union is starting to get

the European Union is starting to get their heads around this issue they

their heads around this issue they

their heads around this issue they believe that the economy the communities

believe that the economy the communities

believe that the economy the communities business owners and employees are all

business owners and employees are all

business owners and employees are all better off if conversations like these

better off if conversations like these

better off if conversations like these happen early and not under duress they

happen early and not under duress they

happen early and not under duress they honor the attachment that the business

honor the attachment that the business

honor the attachment that the business owner has to the business with a

owner has to the business with a

owner has to the business with a transition that involves a bridge job

transition that involves a bridge job

transition that involves a bridge job freedom from having to finance the sale

freedom from having to finance the sale

freedom from having to finance the sale sometimes they ramp up the new owner

sometimes they ramp up the new owner

sometimes they ramp up the new owner yeah but all those eggs in two different

yeah but all those eggs in two different

yeah but all those eggs in two different baskets and that’s a level of attention

baskets and that’s a level of attention

baskets and that’s a level of attention expertise excitement and respect that

expertise excitement and respect that

expertise excitement and respect that startups get that’s a big idea for small

startups get that’s a big idea for small

startups get that’s a big idea for small business the United States isn’t having

business the United States isn’t having

business the United States isn’t having conversations like this yet yet hmm I

conversations like this yet yet hmm I

conversations like this yet yet hmm I wonder what we can do here in Rhode

wonder what we can do here in Rhode

wonder what we can do here in Rhode Island where 96% of business is small

Island where 96% of business is small

Island where 96% of business is small and population is aging rapidly or what

and population is aging rapidly or what

and population is aging rapidly or what if we don’t talk about it

so Paul lived across the street from the

so Paul lived across the street from the factory and he became a friend and the

factory and he became a friend and the

factory and he became a friend and the master martini maker on Fridays at 5:01

master martini maker on Fridays at 5:01

master martini maker on Fridays at 5:01 shake shake shake shake shake shake

shake shake shake shake shake shake

shake shake shake shake shake shake shake shake he’d come across the street

shake shake he’d come across the street

shake shake he’d come across the street and the shop dog would wag her tail and

and the shop dog would wag her tail and

and the shop dog would wag her tail and bark a happy greeting hmm we all bark –

bark a happy greeting hmm we all bark –

bark a happy greeting hmm we all bark – happy greeting he always made a toast

happy greeting he always made a toast

happy greeting he always made a toast sometimes just to Friday so his health

sometimes just to Friday so his health

sometimes just to Friday so his health declined and he passed away about seven

declined and he passed away about seven

declined and he passed away about seven years ago but he would have loved this

years ago but he would have loved this

years ago but he would have loved this conversation and he had learned a thing

conversation and he had learned a thing

conversation and he had learned a thing or two about unchartered waters before

or two about unchartered waters before

or two about unchartered waters before we leave the shore

we leave the shore

we leave the shore he’d christen this boat and of course of

he’d christen this boat and of course of

he’d christen this boat and of course of course he’d have a toast to the

course he’d have a toast to the

course he’d have a toast to the intrapreneur thank you

intrapreneur thank you

intrapreneur thank you [Applause]