Daniel, known as the "POV Husband" on TikTok, YouTube, and Facebook, has captivated a strong following by sharing his cooking talents and life stories, infused with quirky humor. But his journey was far from the life he leads today. Growing up, Daniel worked tirelessly to support his immigrant family, who made significant sacrifices for his success. His vision of the American Dream was rooted in achieving financial freedom and becoming his own boss.
In a recent TikTok video, Daniel opened up about his path to self-employment. After graduating college, he spent eight years climbing the corporate ladder in finance, eventually becoming a vice president with a six-figure salary. Despite the financial success, he felt "unhappy" and "miserable" in the traditional 9-to-5 grind. Seeking more fulfillment, Daniel and his wife, Eunice, decided to pursue a different path by investing in a recession-proof business with solid cash flow, breaking away from corporate life to take control of their future.
Choosing The Right Business And Financing Acquisitions
Daniel shared that leaving his high-income job was difficult, but he soon realised it was his best decision. He understood that a lot can be accomplished quickly if you invest in yourself or your business. "The bills come every 30 days. 30 days is a long time to make something happen. When in survival mode, you quickly realise you're a lot smarter than you think and reaching out to people opens up many opportunities," he said.
The couple started scouting for various businesses, be it dry cleaners, subway franchises, or gas stations. They stumbled upon a family business that operated seven burger shops, each netting around half a million dollars annually despite having the worst Yelp reviews. The couple realised it was a niche they could break into. After eight months of searching for similar businesses, they finally bought their first burger store and quit their finance jobs. They decided to finance the business acquisition through a small business administration (SBA) loan and repaid the debt in one year.
Although the couple entered the burger business, they lacked business skills and had to spend extra hours at work to make it profitable. In one year, the couple acquired another burger shop with the goal of buying a couple of stores annually with the same business skills they learned on the job to generate more money. The strategy was followed by employing a team of dedicated employees who would oversee operations while the couple focused on acquisitions.
They acquired the third store within six months of buying the second burger shop. The couple followed a simple formula: buying rundown burger shops from retiring owners, carrying out minor renovations, creating takeout apps, and doubling down on promoting their "addictive teriyaki" recipe. The couple began generating so much cash that they paid $2,000 for a meal, bought expensive liquor, and experienced a major lifestyle upgrade.
However, challenges at the burger shops were omnipresent, like how they received a 'C' rating for a roach infestation, accidents with the meat slicer, random people damaging properties, and equipment breakdown.
Despite the issues of running a burger shop business, the couple felt that becoming business owners was the ideal way to earn more cash compared to their corporate jobs. Many millennials are also arriving at a similar juncture of choosing between their high-paying jobs with mundane routines and potential business ventures they are passionate about.
Boomer Retirements Driving Small-business Takeovers By Millennials
A Forrester Research 2023 survey found that over 64% of people buying businesses were millennials or those younger. Potential millennial business owners like Daniel also look for an existing skilled workforce, robust client partnerships, and functional equipment when purchasing small businesses. Furthermore, the LA couple understood that financing a business acquisition could be simpler than funding a new business as sellers often help with funding options like accepting staggered payments or shares in future earnings that significantly reduce the up-front costs for buyers.
Millennials could be experiencing the maximum financial stress as they tackle student loans, credit card debts, and volatile housing markets while figuring out how to save for their golden years. However, buying existing businesses with solid reputations and customer bases can help them create wealth, learn business and people management skills, and ultimately follow their passion by choosing the industry of their choice.
Over 50% of small businesses in the US with a single owner and up to 500 employees are owned by people above 50. Furthermore, NewEdge Wealth projected that boomer-owned US businesses are worth around $10 trillion.
However, most of these boomers are unable to retire peacefully until they have figured out what to do with their businesses or who will succeed them. They are often torn between choices like whether to hand over the business to a family relative or a long-time employee or if they should close it down or sell to private equity firms. Edie Ellis of Agent of Change Consulting in Chicago recently told Business Insider that many small business owners realised their kids didn't want to take over, which compelled them to look for potential suitors.
Ellis explained that kids of small business owners often avoid taking over their parents' businesses because they grow up seeing them work 24/7 without a day off, something the children don't want to do.
Overall, BizBuySell data revealed that small-business sales have recovered substantially from the pandemic-induced lows of 2020. Over 35,000 businesses were listed on its platform in Q2 2024, with a median revenue and asking price of $700,000 and $395,000, respectively. While all companies up for sale might not be suitable investments, finding the right business opportunity can offer more efficient wealth-building routes than traditional investments.
Realising A Different Passion
Going back to Daniel, after a brief time of feeling they had achieved the American Dream, the couple with former corporate finance jobs soon realised they weren't destined to run burger shops, given the challenges around employees and lease contracts. They sold two of the three restaurants and are figuring out their next move.
However, Daniel recently received a broker's license, which he thinks could open up new opportunities. People transitioning from corporate jobs to small businesses often lack the temperament to handle the flat hierarchy and dynamic priorities. Ellis also urged millennials eyeing small businesses to ensure they are free of hidden problems, like outstanding dues to the IRS, missed bill payments, or pending legal cases.
