Madison business owners and the city share a symbiotic relationship. When one succeeds, the ripple effects of that success is often felt by the other. But that symbiotic relationship can also share negative effects as well. Thankfully, Madison is currently in a good place — at least by pre-pandemic standards.
Madison Is Growing
The great city of Madison and its successful culture is heavily influenced by the Wisconsin State Government and the University of Wisconsin—Madison. However, throughout the last decade, this trend has started to shift as Madison’s economy evolves more towards growing health, biotech, and advertising industries.
Consumer services and high tech businesses have been moving into and around Madison at an accelerated rate. The metropolitan product gross for the city is north of $51 billion(1), according to the most recent numbers.
Needless to say, Madison is growing — and growing well.
However, a recent article (2) on the Madison-based website In Business cites research from Ready for Next Cities (RFN Cities), a preparedness and business retention program. The findings are a clear concern for the future of the rest of Madison’s businesses.
The Pending Silver Tsunami in Madison
According to the research, 50.42% of Madison-area business owners are over the age of 55 and 20.64% of those owners have no documented transition plan. This introduces concerns as we look ahead to the next decade of Madison.
“At the end of the day, Madison has roughly 56,000 baby boomer business owners making a transition decision in the next five to 10 years that will affect 113,000 jobs in your city,” says Kim Powell, director of marketing and communications for RFN Cities.
The economic impact of business owner retirement could be substantial. However, there’s a more concerning percentage to keep an eye on.
The 20.6% of those Madison baby boomers that don’t have a documented transition plan for their businesses is alarming. This is a growing trend within all of Wisconsin as well. State-wide, almost 20,000 Wisconsin businesses have no succession or transition plan in place.
Despite these businesses being smaller to mid-size, the amount of business owner wealth at risk is a drastic $11 billion.
What Can Business Owners Do to Save Madison’s Future?
For you baby boomer owners out there, there’s no time better than today to reach out and seek a financial professional that can help you through your transition process.
Even if you’re not a business owner that is close to retirement age, you should be searching for a financial professional soon to prepare for your future — for a number of reasons.
1. Preparing for Unexpected Events
Life can sometimes get in the way. The threat of unexpected injury, death, illness, and divorce — not to mention a global pandemic — can rock the world of your business and personal finances.
When you have a transition plan in place, you and your family will know what steps to take. The old adage, “Better safe than sorry,” could never be more true when it comes to transition planning.
2. Seeing the Metrics to Decide IF You Want to Retire
When you sit down with a financial professional and go through the metrics of your business and finances, you’ll face the realities of potential retirement. Sometimes those realities will open your eyes to the fact that you can retire — and retire comfortably. Sometimes they’ll show you that you are not yet ready to walk away.
3. Succession Plans
Perhaps you’re not ready to let your business go — but you’re ready to step aside and hand off the reins to another. Transition plans are perfect opportunities to develop succession plans that will allow you to choose the right successor for you and your business.
But now is the time to prepare.
Not just for you, but for the future of Madison’s business districts.
Madison needs its businesses. Some are destined to close as business owners move on to bigger and better things — or a comfy chair on a beach in the tropics. But others are destined to live on as part of this great city.
Triumph Wealth Management utilizes the unique process of doing what is right for you — the business owner — when it comes to your financial planning. For us, it’s not about what you’re worth. It’s about finding out what transition plan is best for you, your family, and your business.
1.Total Gross Domestic Product for Madison, WI, December 12th, 2019
2. Could a silver tsunami sink Madison?, September 15, 2020 by Jason Busch
To discuss your financial plan and how we can help, contact our office at firstname.lastname@example.org to schedule a meeting.
Securities and investment advisory services offered through qualified registered representative of MML Investors Services, LLC. Member SIPC (www.sipc.org). Supervisory Office: 525 Junction Road St 8100N, Madison, WI 53717 (608)829-00015. Triumph Wealth Management, LLC is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. CRN202209-271838