b'THE OLDER MAN HAD EXPERIENCE AND CLIENTELE. Retirement wave hitssmall businessesTHE YOUNGER MAN HAD COMMITMENT AND VISION FOR SOMETHING NEW. By Trina KleistGrass Valley Sign Co.s founder, Ed Thompson, is part of THEY GOT HELP DESIGNING THEIR BUSINESSa national wave of baby boomer retirements that is hitting OWNERSHIP TRANSITION. small businesses.Nationally, as many as 9 percent of small businesses AND SO, A LOCAL PRINT SHOPS LEGACY close each year. Of those, retirement of the owner was the CONTINUES FOR ANOTHER No. 2 reason reported for closure in 2015, after low sales. GENERATION. Owner retirement accounts for about one in five closures each year, according to the United States Small Business Administration. From research, we know that the majority of smallbusiness owners are baby boomers, about 69 percent, saysAmandaElliott,directoroftheCaliforniaMain Street Alliance. That covers 2.3 million small businesses nationally, accounting for $5.1 trillion in sales, according to Project Equity. A lot of them are looking to transition their business and not certain about how to do that, Elliott adds. Often, family members are not wanting to take on the business.NevadaCountyalsohaslostsomebeloved establishments to owner retirement. But support abounds for business owners wanting to transition out, sometimes for free or at low cost. HOT TIP - Find Good PeopleThemostimportantthingwhenconsideringan ownership transition? Surround yourself with people who know more than you do, advises business consultant Jill Meeuwsen of Synergy Management Consultants, LLC, who is guiding Brewer through the process.The Nevada County Economic Resource Council offers support to entrepreneurs at all phases of the business lifecycle. For starters, the ERC can connect people to certified public accountants, lawyers and financial planners who understand local conditions, said ERC Executive Director Tim Corkins. How many parts we would pull in depends on the complexity of the transaction, Corkins explains. Were a resource to help put it together.Mostlocalhighschoolsrequirestudentsintheir senioryeartocompleteaproject,whichcaninclude jobshadowingoraninternship.Guidancecounselors can connect students hungry for work experience with employers willing to take them on. Grass Valley Sign has aninternnowfromBitneyCollegePrepHighSchool, Townsend says.Anothermodelgainingtractionnationwidehas employees taking over the business, Elliott says. An owner can transition out entirely, or retain a stake in partnership with the employees. Project Equity is a nonprofit program that helps the two sides analyze the financial feasibility, plan the conversion and structure the deal. It also offers But with an eye toward retirement and his heart beating local,training to the employees as they take over, she adds.Townsend mulled selling. If I advertised or went through a broker,Whenitcomestimetoapplyforaloan,theSmall Id find someone from out of the area that has the money, he recallsBusiness Administration can help. When the SBA approved thinking. He knew theyd look at all he gives back to the communitythe application of William Brewer, Townsends successor, Brewer received multiple bids within days, he says. Offers in discounts, sponsorships and other support, and they would axeincluded one from River Valley Community Bank, locally the relationships he has cultivated. I just didnt want that. I wantedowned in Yuba City and with a branch in Grass Valley. somebody whos worked in the business, who wanted the business, whoMeeuwsen steered Brewer toward River Valley, noting the didnt see it as just an investment, Townsend says. advantages of working with local institutions.I see this as my retirement, Brewer interjects. As you go through each step of the transition, make And maybe hell turn it over to his progeny, Townsend continues. sure you have people who will connect you to resources, challenge your thinking, help you set up a solid financial Continued on Page 22 framework and prepare for contingencies, Meeuwsen says.Business 2020 21'