Make work great again: Small business can do what politicians only talk about

MW Make work great again: Small business can do what politicians only talk about

By Codie Sanchez

Trump administration should expand tax breaks and affordable loans for entrepreneurs and local business owners

Americans need and want work that provides stability and ownership.

Work is about to change in a big way, and Americans are ready for it. You can see it in the popular shows nowadays. WeCrashed, Severance, and Silicon Valley have shattered our startup fantasies. Beneath the glamorous surface lies a culture plagued by burnout, isolation, and a troubling lack of humanity. Black Mirror warns of big tech's endgame: lonely humans serving algorithms instead of communities.

The book "Bullshit Jobs" exposes the astonishing number of meaningless roles filling corporate offices. And to top it all off, Succession and The Assistant reveal the sociopathic elites using us as pawns in their power games. Behind the glossy façades lurk predators who exploit and destroy the people beneath them.

So where does this leave us? Will Corporate America remain a soul-crushing machine? Will Silicon Valley promise freedom but deliver digital feudalism? Will the gig economy turn independent work into algorithmic servitude?

Real American prosperity wasn't built on startups, side gigs, or corporate jobs - it was built by local business owners on Main Street.

Americans are seemingly fed up with empty promises, including those from corporate America and big tech. Donald Trump's presidential election victory points to a collective desire among the American middle class to bring back real, grounded work - meaningful work that supports our communities.

Love it or hate it, Trump's "Make America Great Again" is about restoring purpose and wealth through local businesses, the backbone of America. The U.S. election results point to that shared sentiment. Americans need and want work that provides stability and ownership, while remaining human and connected. The incoming Trump administration would do well to bring new policies that will help local businesses thrive, including:

-- Tax incentives for local entrepreneurs: Offer tax breaks to small business owners who use their profits to hire more local workers, purchase from nearby suppliers, or support community initiatives like local events or infrastructure improvements.

-- Succession support for retiring business owners: Introduce tax benefits for retiring business owners who use seller-financing to transition ownership, ensuring profitable businesses are preserved and passed to new, committed owners.

-- Affordable capital access: Establish low-interest loan programs that make it easier for everyday Americans to purchase or expand small businesses, democratizing economic opportunity and encouraging local investment.

Real American prosperity wasn't built on startups, side gigs, or corporate jobs - it was built by local business owners on Main Street. A plumber could own their business, send their kids to college, and retire comfortably. A hardware store owner could become a trusted resource and cornerstone for their neighborhood. A local manufacturer could provide stable jobs for generations. That wasn't just a dream - ownership was the reality for millions. And here's the thing: it still works today. We've just forgotten.

The average U.S. small business owner has a net worth of $320,000 - that's two-times more than the average employee

Here's what we've failed to teach American workers: Owning or buying a Main Street business is still the most reliable path to prosperity. These businesses offer what startups, corporate jobs, and freelancing can't: steady income, family time, and deep community roots. And the numbers don't lie. According to the U.S. Small Business Administration, the average U.S. small business owner has a net worth of $320,000 - that's two-times more than the average employee. Acquired small businesses have a five-year survival rate ranging between 70%-90%, compared to just 50% for startups,

One person who proves the power of this strategy is Wayne Huizenga. He started as a college dropout working as a garbage man, barely making ends meet. Then he made a move that changed his life: Instead of starting from scratch, he bought a small garbage route from his boss and kept buying more.

Eventually Huizenga transformed his single truck into a fleet, building his company, Waste Management $(WM)$, into a national giant. Later, he used the same buy-and-scale method to turn Blockbuster and AutoNation $(AN)$ into industry leaders. Today, Huizenga is a billionaire. His story shows how smart acquisitions and grit can create incredible wealth, even starting from humble beginnings.

Make Main Street thrive again

Close to 10,000 small business owners retire daily. Most of them lack a successor.

Right now, baby-boomer Americans own more than 2 million profitable Main Street businesses. All of these businesses need to transfer ownership within the next decade, or risk closing forever. While politicians talk about making America great again, this is our chance to actually do it.

When local businesses win, entire communities thrive. Take Chatham County, N.C. Jobs were scarce, and many local shops were closing their doors. Unemployment was at 6%, and the town felt stuck. Then government incentives brought in major projects like the Wolfspeed factory and Vinfast plant, creating more than 7,500 new jobs. Today, unemployment has dropped to 3%, and local businesses are buzzing with new customers. Families now have steady incomes, more people are buying homes, and schools and public services have more funding. Smart policies don't just help business owners-they make entire communities stronger, safer, and more vibrant.

If you're skeptical about money-making opportunities in America, I get it. This path isn't fast or easy. But it is battle-tested - the most reliable way for regular Americans to build real wealth. Here's how you can do it:

-- Identify a retiring Main Street business owner ready to exit. Close to 10,000 small business owners retire daily. Most of them lack a successor, which often results in the company shutting down permanently. That's where you can step in and prevent the closure of their profitable business. This transition preserves their life's work and opens your path to wealth.

-- Offer to keep their legacy alive. Show your commitment to carrying on the values, reputation, and community role they've built over the years. By stepping into their shoes, you ensure that the business, its employees, and loyal customers continue to thrive.

-- Opt for a profit-sharing structure instead of an upfront payment. Rather than a traditional buyout, propose a plan where they receive a share of monthly profits. This setup provides them with a steady retirement income and reduces your initial costs, allowing both sides to benefit from a sustainable, low-risk path to ownership.

How to buy - and build - your business

But let's be real - there are challenges. First, do your homework. Dig into the financials. Check for customer loyalty and any hidden debts. Make sure the business has a solid reputation in the community. Use a CPA or business broker to avoid costly mistakes.

Negotiating with the retiring owner takes some finesse. Many are attached to their businesses and want to see them in good hands. Show them you're serious about preserving their legacy and keeping the business strong. Have a plan for a smooth handoff, including keeping key employees happy and making sure customers stick around.

For financing, think outside the box. Instead of a bank loan, consider asking the owner for seller financing. In other words, instead of one lump sum payment, you pay them a small percentage of the profits every month. This can mean lower interest rates and more flexible terms. It also keeps the owner invested in the business's success.

Another smart move? Buy the business from your employer. If you already know how it runs, you're in a great spot. When the owner is ready to retire, make your offer. Your familiarity will make the transition smoother and boost your chances of success.

Watch out for potential pitfalls. Be ready to manage cash flow carefully, especially in the early days. Plan for unexpected expenses, like broken equipment or shifts in demand. And always get professional advice to stay on track.

The next chapter of American work isn't about escaping to tropical beaches with a laptop, or chasing unicorn startups, or isolating ourselves in service of algorithms. It's about reclaiming ownership on Main Street. It's about owning real businesses that create real long-term value, for real communities, while earning real profits. That is the real unicorn- and it's possible for just about anyone to achieve.

Codie Sanchez is the author of "Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses" (Penguin, 2024). She is the founder and CEO of Contrarian Thinking, a financial education company. Sanchez owns many Main Street businesses, including car washes, laundromats, and roofing, painting, and handyman companies. Learn more at ContrarianThinking.co.

More: Small-business owners voted for Trump. They won't get everything on their wish list.

Plus: Small businesses have never been more uncertain, and it's holding back spending, trade group says

-Codie Sanchez

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November 25, 2024 07:45 ET (12:45 GMT)

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