John Hope Bryant (22:43)
Listen to the American west with Dan Flores on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts. A housing supply shot. You know older homeowners will downsize, sale or pass away. This can be business succession crisis. That's what this podcast is about. Millions of small businesses and trillion dollar trillions of dollars in value are owned by boomers with no secession plan. Hello, Please write this down. That was at minute number 16. The opportunity for young Americans is to inherit assets, buy businesses or enter new markets. The risk is that there's a potential concentration of wealth. Especially if most of this wealth is passed down to those who are already wealthy. There's going to be an ownership shift in stocks, real estate, retirement accounts, privately held businesses will change hands. Boomers will sell assets to fund retirement, possibly impacting economic markets. 80 to 90% of this transfer is expected to stay within white families. Don't get angry about it. It's an is, right? And folks who made it legitimately and honestly can do with it as they will. If you made your own money, you'd like to do with your money as you will, right? People say, oh, I, I hate rich people. No, you don't. You hate rich people until you become rich. What you hate is a game system, right? What you hate is a system that no matter how hard you try, no matter how hard you work, you can't get ahead. But, you know, I'm not black in this conversation. I mean, I am black and I'm proud of it. I'm green. That's why I told you about this line of credit that I just inked, literally before I got on the podcast, because I'm going to position myself to do some of the stuff that I'm telling you to do. I'm creating my own private equity effort and go buy some companies that I'm getting ahead of myself. So there are 12 million privately held businesses in the US that are owned by baby boomers. About 31 million, 32 million businesses Overall, by the way, about 12 million privately held businesses that are owned by baby boomers. They value between 10 and 12 trillion dollars. And the heirs don't want them. The people who. So baby boomers are going to, again, they're all trying to get to the exit door at the same time. They're all trying to go play golf and travel at the same time. God bless them, they've earned the right. They're gonna give the stocks, the cash, the bonds, the homes, the real estate to their wives. Husbands, husbands, in the case that the wives made the money. The husbands, wives, the children, the lovers, whatever, but the kids and the. And the mates don't want the businesses. That's work, right? They're like, no, I'm good. By the way, there's a joke. First generation makes it, second generation spends it, third generation loses it. So a lot of people who don't, they pass down their assets, but they don't pass down their hustle. And that's a whole nother podcast for another day. But essentially, that's what this podcast series, and we're on season two now, has been about, is about, is really passing down how to demystifying capitalism, telling you what good capitalism looks like and training you so you can become a good capitalist. You know, the joke would be in social empowerment circles, it's not Black lives Matter, it's black capitalist matter. Or not just black lives matter, black capitalist matter. But this is, again, this is, this is a universal conversation for everybody. But I am supersizing this conversation for black America because we're at the bottom of the economic pyramid and we need to come up and this is a brilliant way of doing it. So let's now talk about, let's get into the actual opportunity. So this is $100 trillion that will transfer in the next 10 to 20 years. It's a once in a lifetime opportunity for black America in underserved communities to advance through strategic acquisitions of aging businesses ownership through. So there are, give or take, you know, 96% of black owned businesses in this country. 96%, 96% don't have an employee. And Operation Hope has created, inspired, advanced about 450,000 black businesses through the 1 million black business initiative. And of the 31, 32 million businesses in America, there are not enough that are able to do what, what I call compounding, which is, well, you build wealth and you're slipping, you sleep, you do that through compounding. So if you only have one employee, which is 96% of businesses, then you're a self employment project essentially and you're just making a living, maybe making a good living. But as soon as you stop that effort, the business stops. But if you have employees, you have systems, you have, you have, you have real estate, you have infrastructure, then when you're asleep, that business is, is growing and you have technology, it's orders are coming in, things are happening when you're on vacation, things are happening, so on and so forth. So clearly you stop, it stops. So we gotta find a way to create black businesses that have the ability to scale. Now you can start a business and if you want to start a business, I'm an entrepreneur, I've started 50 of them. I can't be mad at you. In fact I would encourage that. Generally speaking, 1 MBB 1 million black business initiative, our partnership with Shopify is encouraging that around E Commerce as an example. But there may be a smarter way for you to go about this. And I'm going to commit right now that I'm going to get operational to start training you in mergers and acquisition investment banking, sort of. This, this next, this thing I'm talking about in this podcast, I'm actually going to get Operation HOPE to do training around that. So I'm walking my talk so, so stay tuned, stay tuned for that. Let's get into $100 trillion in. Why should you care? Let's get to the meat of it. 10 to 12 trillion dollars in small, medium sized businesses of this going to be, be sort of orphans. Nobody wants them. Now keep in mind, I've just said most black businesses are self employment projects. They don't have infrastructure, they don't have systems. Take your finger off the economic button. Stop selling things. They just stop, they stall. So, so you, you've got cash flow, maybe you have riches because you have a contract for income. But as soon as you stop that, the, your outflow sees your inflow and now your overhead will be your downfall. You don't, you've not built any wealth. You haven't built anything you can sell. You're building anything that you, you, you can leverage up, franchise, whatever, right? So you can go start a pizzeria yourself or whatever business you want to start and raise the GoFundMe campaign or whatever, fifty thousand, a hundred thousand dollars or you can go buy something that already exists. Okay, here's the, drop the mic. I'm talking about businesses that have cash flows, that have customer lists, that have real assets, that have infrastructure, that have systems, that have a brand name, right? They, they, they have reputation, they have credit lines and they have an owner that doesn't want it anymore. I'm so excited about this. So again, 10 to 12 trillion dollars in small medium sized businesses that are going to transition into new hands. The children in the family really don't want them. Over 4 million businesses are owned by baby boomers. And again, 70% of these don't have succession plans, no place to put them. Okay? And they're great businesses. Baby boomers are retiring it hold on now. 10,000 a day. There are 10,000 people a day saying I'm out of here, I'm going to play golf, I'm going to shop, I'm going shopping, I'm going to go travel the world and you know, just say 10% of those, a thousand of those, 15% of those a day, 1500 of those have a business that has no place to go. So Black America currently own just 2% of U.S. businesses with employees. This is not charity. I'm talking about, I'm talking about capitalism with capacity. So we're talking about Black Wall Street 2.0 moment, if you want to call it that. It's nationwide and it's inclusive. This is about ownership, which is wealth, influence, jobs and community anchoring. This is if you want to call it Tulsa, you know, or black Wall Street. This is Tulsa in every community in America. And this is not a black business we're talking about. These are great businesses happen to be owned by black people, okay? And when you create wealth, you can then create. You can pass down philanthropy and you can start your own schools if you like, and give, give charity to whoever you like. You can created an entrepreneurship charter school in your neighborhood. You can give to charities. You can be enormously philanthropic and support your family and friends. You're paying your taxes now. All of a sudden, lights are staying on in your neighborhood now. Now you have services. You have the credit scores going up. You have better grocery stores replacing convenience stores. You have banks replacing check cashers. The whole community changes. The tax base goes up. Police are starting to protect you, not. Not prey on you. It's a whole new situation when you turn green from just being poor in whatever. And this is a way again to do this at scale. So let me get very specific now. We're at minute 26 again. You tell somebody, go to minute 26. You have a local dentist in Detroit with a thriving practice. Kids don't want it. Again, you thought I was going to talk about some high tech thing or some startup business? No, no, no. A local dentist. That's a business, by the way, in Detroit. Thriving practice. Customer lists. If you're living in dentist, think about if you live in dentists. If you live in Detroit, think about the dentist that you go to, right? You live in Maryland, you live in Baltimore, you live in Washington, D.C. you live in Hawaii somewhere. You live in. I was just in Arizona just yesterday, speaking at a CNBC CEO conference. You're in Tucson, where I just flew out of the. You're a dent. You go, who's. What dentist do you go to? Okay, they have a thriving practice. You're looking at the owner. You know, you, you can tell who an owner is when you're in a. With a business, by the way, you're looking at the owner because, you know, folks don't wash rental cars. Like, so there's a whole mindset with somebody owns something. You come in my business, you can tell I own something. I've had people tell me, like, you're the owner, aren't you? Right. So that owner, you see that owner, that owner looks 60, 65, 70. They try to get the heck out of there, right? Make an offer. Okay, I'm getting ahead of myself. Family run H Vac air conditioning business. Heating and air conditioning business company in Charlotte. No succession Plan architecture firm in Los Angeles looking for a buyout. A regional black led investment group can buy these businesses and keep jobs local and scale it up. It doesn't be a black led investment group. It can be a limited liability corporation with three friends that get together. I mean, I'm going to get the capital in a minute. Okay. But you know, it does, it doesn't have to be this sophisticated thing, although you have to go about it in a sophisticated way. You need to go get you some business training because there's a difference between business and business. Right? Right. And so go to Operation Hope. Go to the Urban League or whoever you like or the sba. Get yourself business trained. And, and we will scholarship you into that as long as we continue to do well at Operation Hope. And we're doing pretty good right now. Thanks for all the support. To our, from our partners, we will scholarship you into at least one year of consumer credit training. If you're a small business owner, you tend to use your own consumer credit in the short term because your business doesn't have credibility. Or we'll get you business training and entrepreneurship training if you want that, in E commerce training, et cetera. So think about these local businesses as you're driving down the street. You're listening to this podcast, right? Look up, there's an office building, right? There are hundreds of little businesses in there. Look to the right of you, look to the left of you, there's storefronts, right? Grocery stores, convenience stores, gas stations, nail salons, barber shops. Help me out here. You guys are watching this. Grocery stores, I've always said convenience stores, shoe stores, boutiques, medical offices. Yes, that's a business. They're everywhere. Literally they're everywhere. I mean, this is unbelievable opportunity I'm telling you about here. So the common barriers of people saying, this sounds great, John, but how do I access capital? I don't have these relationships. I don't have the know how. If you hang around nine broke people, you'll be the tenth. I've told you that you can change what you hang around. But these barriers are, are, are overcomeable. So I want you to look up all this sba, Small Business Administration, lenders, right in your area and go see them, go get to know them. Look at the FDIC insured banks in your area. They have banks have a CRA requirement, Community Reinvestment act requirement. Go see them. If you don't, you're too intimidated. Intimidated to go to the bank directly or you don't know who, who to approach because the Branch manager is not going to be able to help you too much in this what I'm talking about here. You need to get to a level above that to the corporate level at the bank. You can go to Operation Hope and we'll bridge you relationships. But I want you to go to banks and talk to them about CRA Community Reinvestment act and how you might fit in. I want you to go to the to ask them about their did they have any venture capital arms or private equity arms inside of their banks? Go to the sba Small Business Administration. Look for lenders and investors in your area. Look for small business investment corporations in your area. Look up CDFIs, Community Development Financial institutions in your area. If you if I'm going too fast, just rewind the podcast and write it down. Financial education and credit score improvement that's through Operation Hope. That is a form of credit. Yes, sorry, that is a form of capital. Actually if you have a 500 or 600 credit score, I don't care how good your idea is, you're not getting a loan, you're not getting an investment because your credit's toe up in the flow up and no one's going to loan you money because you don't pay it back. But if you get your credit score up 100 points, which is what Operation Hope is doing in 18, 24 months. Get your credit score up 54 months in 6 months, which is what Operation Hope is doing, we're raising credit scores 54 points in six months, lowering debt 32, 33, 34, increasing savings $1,200 for somebody making $48,000 a year. We just made you bankable at prime rates. I'm going to do a whole podcast just on the toolbox called Operation Hope and walk you through the how and the what. Do you like that idea by the way? If you do, let me know in the comments. So I call this the opportunity, the Ownership opportunity pipeline. Identify target industries, healthcare trades, real estate services, whatever you love. Educate Young Entreprene is about M and A, not just startups, mergers and acquisition. Again I'm going to tell you Operation Hope is going to do that, but you can if you know about this, do it in your area. This is a form of financial literacy. More sophisticated form launch acquisition apprenticeships for 25 to 40 year olds. Encourage investors to to back community led buyouts. Right? Use tax incentives and policy tools to support transitions of these small businesses. So go to your mayor, go to your county officials and ask them are there any tools in place to help these businesses transition. Maybe they'll put something in place for you. Local mobile gdp. Most gross domestic product income for this nation comes from cities. Not from the federal government, not nationally. It comes from cities. I mean, Atlanta right now, 10th largest economy in the entire country, right? 580 billion. Billion. Which is the same size economy as Singapore. And it's built on diversity, inclusion, and dynamic economic small businesses. So imagine what I want you to do is imagine 1 million new black businesses by 2035. They're at scale. Not what we're doing just right now with one MBB. Imagine something by 20 that are at scale. These are big businesses or businesses with employees, with pro, with profit centers, cash flows, brands, the next iteration of business. Communities shifting from being renters of their future to owning parts of it. Hello, Can I get an amen?
