{"id":257226,"date":"2025-03-12T05:40:15","date_gmt":"2025-03-12T05:40:15","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/12\/young-professionals-are-increasingly-turning-to-boring-small-business-niches\/"},"modified":"2025-03-12T05:40:16","modified_gmt":"2025-03-12T05:40:16","slug":"young-professionals-are-increasingly-turning-to-boring-small-business-niches","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/12\/young-professionals-are-increasingly-turning-to-boring-small-business-niches\/","title":{"rendered":"Young Professionals Are Increasingly Turning to Boring Small-Business Niches"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\"https:\/\/i3.wp.com\/static01.nyt.com\/images\/2025\/03\/04\/multimedia\/00MakingItWork-Searchers-01-lchj\/00MakingItWork-Searchers-01-lchj-facebookJumbo.jpg?ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Young Professionals Are Increasingly Turning to Boring Small-Business Niches\" title=\"Young Professionals Are Increasingly Turning to Boring Small-Business Niches\" \/><\/div><p> <br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\"><em class=\"css-2fg4z9 e1gzwzxm0\">\u201cMaking It Work\u201d is a series about small-business owners striving to endure hard times.<\/em><\/p>\n<p class=\"css-at9mc1 evys1bk0\">When Nicole Rizzo saw the \u201cFor Sale\u201d listing for Die Cleaning Equipment, the first detail she liked was that it was run by a married couple. Ms. Rizzo, then 43, was searching for a company to run alongside her own husband. But her husband, David, was puzzled by the name. Was it something involving janitors?<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Die Cleaning Equipment, as it turned out, employed welders. The company in Phoenix made machines that cleaned other machines \u2014 specifically, aluminum extruders, which force the metal into shapes useful for everything from bumpers to stethoscopes to gun parts. Steve Smith oversaw the shop, where a small team assembled vats and pumps out of stainless steel. His wife, Kristin, handled the finances.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The Smiths had carved out their niche-within-a-niche from scratch, with Ms. Smith initially moonlighting as a church secretary to keep food on the table. But as the couple approached their 70s, they dreamed of a new relationship with aluminum, involving monthslong trips in an Airstream trailer. <\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">A younger couple like the Rizzos were not the obvious choice. Neither knew much about aluminum. Ms. Rizzo had worked in local government, and Mr. Rizzo had held mostly corporate jobs in farming. But a visit to the Smiths\u2019 shop near the Phoenix airport proved illuminating.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cI saw the machines and I was like, This is the coolest thing I\u2019ve ever seen,\u201d Ms. Rizzo said. In June 2021, the Rizzos bought the company for about $600,000. Ms. Rizzo became chief executive. Almost four years later, the couple have recovered their investment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The ranks of \u201csearchers,\u201d as prospective buyers like the Rizzos are often called, are growing. That\u2019s partly a product of demographics \u2014 the generation in their 30s and 40s <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/02\/business\/economy\/33-year-olds-millennials.html\" title=\"\">is the largest ever<\/a> \u2014 and also of a surge of workers pivoting toward greater autonomy. On <a class=\"css-yywogo\" href=\"https:\/\/www.bizbuysell.com\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">BizBuySell<\/a>, the popular listings site where the Rizzos found the Smiths, \u201ccorporate refugees\u201d ditching the 9-to-5 have surged to 42 percent of buyers, roughly double the 2021 figure. Meanwhile, <a class=\"css-yywogo\" href=\"https:\/\/www.lendingtree.com\/business\/small\/best-places-for-boomer-entrepreneurs\/#:~:text=According%20to%20the%20U.S.%20Census,22.8%25%20are%2065%20and%20older.\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">nearly a quarter<\/a> of American small businesses are owned by people 65 and older, making the Smiths part of a \u201csilver tsunami\u201d of sellers.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Enrollment has soared in business school courses on \u201centrepreneurship through acquisition\u201d \u2014 the art of building upon success, rather than hatching it. But an M.B.A. is no requirement. A legion of influencers on YouTube, LinkedIn and TikTok bear advice for how to \u201cthink niche\u201d and \u201cbuy boring.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cPeople are realizing that buying a business is a much less risky proposition than starting a new one,\u201d said Bob House, the president of BizBuySell.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Part of the appeal are loans from the Small Business Administration that can require as little as five percent down from small-business buyers. But borrowers are on the hook for failure. More than a third never find a buyer.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Among searchers, one adage is to fall in love with the economics of the business first. Prepare, then, to be fascinated by the day-to-day details \u2014 and challenges.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Brittney Orellano, 39, first learned about \u201cthe search\u201d in 2022, through a podcast interview with <a class=\"css-yywogo\" href=\"https:\/\/www.youtube.com\/@CodieSanchezCT\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">Codie Sanchez<\/a>, a YouTuber who often posts about the virtues of acquiring a \u201cboring business.\u201d Ms. Orellano and her husband, Ray, 46, had built a property management company together in Kansas City, Kan. But it had never occurred to her that she could buy a business that was already successful.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The Orellanos\u2019 search was immediately \u201ca full-court press.\u201d She downloaded more podcasts and quizzed her accountant, her friends, her plumber: Was anyone looking to sell?<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Six months into their search, the couple acquired Radio Controlled Garage Door &amp; Gate for just under $1 million, financed primarily through an S.B.A. loan.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But they soon realized that, in their excitement, they had \u201cmissed some red flags.\u201d The seller walked away with boxes of physical sales records, leaving them without a customer database. The person described as a \u201cgeneral manager\u201d was merely a dispatcher. To turn off one of the vans they inherited, they had to pop the hood and unscrew a valve.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Still, nearly two years later, Ms. Orellano doesn\u2019t regret the venture.<span class=\"css-8l6xbc evw5hdy0\">  <\/span>She was proud of offering an everyday service over a glitzy one \u2014 even as she avoids boring friends with the finer details of garage door clickers. <\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-6\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Most searchers, Ms. Orellano realizes now, are more calculated. The average search is about 18 months and involves browsing through online listings, bonding with reputable brokers, and sending cold emails to potential retirees in the search for a hidden gem. Certain criteria prevail: strong revenue, a \u201cfragmented\u201d industry where small operators can thrive, room for growth.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cA lot more people are getting in the game,\u201d said Nick Haschka, 39, an entrepreneur and investor known for his advice<strong class=\"css-8qgvsz ebyp5n10\"> <\/strong>on LinkedIn and X. In 2017, after a failed startup endeavor, he and a business partner bought the Wright Gardner, a 30-year-old San Francisco company that maintains indoor office plants. His friends had questions: He was doing <em class=\"css-2fg4z9 e1gzwzxm0\">what<\/em> with his M.I.T. degree? Landscaping? He was far younger than most of his 11 employees.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cI don\u2019t think I had any grand expectations to go and rule the world,\u201d he said. \u201cIt was almost the opposite.\u201d If he could not be a tech titan, he could water their ficuses.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Today, would-be entrepreneurs also face growing competition from \u201c<a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/15\/business\/entrepreneurs-startups-search-fund.html\" title=\"\">search funds<\/a>\u201d run by recent business school graduates who partner with outside investors, and from private equity firms. Mr. Haschka advises searchers to consider overlooked trends. He had recently begun buying generator businesses, reasoning that the disruptions to California\u2019s power grid aren\u2019t going anywhere.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In Phoenix, the Smiths were proud of their products, which safely automated a hot and caustic process. But they struggled to find a buyer who wanted to keep the business and its employees where they were. \u201cWe didn\u2019t want our baby to die,\u201d Ms. Smith recalled. .<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Then came the Rizzos. They had considered Jiffy Lube franchises and inquired about a port-a-potty service, but it had already sold, it turned out, to their real estate broker.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">When the deal closed, it was an adjustment. Two days in, an expert welder \u201cwent to see about her horses,\u201d Ms. Rizzo said, and never returned. They were midway through building two machines at the time.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But another welder stepped in, and the contracts kept coming. The couple, who are currently looking for a bigger space, have added services like installations. If they have any complaints, it\u2019s that success in a niche can be lonely. \u201cOnly a few of our relatives think it\u2019s impressive,\u201d Ms. Rizzo said. \u201cMost people are like, whatever.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If they want to \u201cget nerdy\u201d about aluminum, they still have the Smiths. Every few months, the two couples have breakfast together. Mr. Smith recently teared up when he heard about their latest contract. \u201cHis greatest fear was that the person who bought the business would fail,\u201d Ms. Rizzo said. Each new machine was a sign that he had put his baby in the right hands.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">It was time for the Smiths, at last, to go camping.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2025\/03\/12\/business\/young-professionals-boring-small-business-niches.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cMaking It Work\u201d is a series about small-business owners striving to endure hard times. When Nicole Rizzo saw the \u201cFor Sale\u201d listing for Die Cleaning Equipment, the first detail she liked was that it was run by a married couple. Ms. Rizzo, then 43, was searching for a company to run alongside her own husband. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":257227,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static01.nyt.com\/images\/2025\/03\/04\/multimedia\/00MakingItWork-Searchers-01-lchj\/00MakingItWork-Searchers-01-lchj-facebookJumbo.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[3789,198615,34255,198614,198613,3026,56368,198618,38021,76710,198616,198617,5589,1723],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/257226"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=257226"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/257226\/revisions"}],"predecessor-version":[{"id":257228,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/257226\/revisions\/257228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/257227"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=257226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=257226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=257226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}