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  • Writer's pictureKenneth Eremita

A Streamlined Business: The Last Bastion of Wealth in the Post-Covid Era

As a millennial, born right in the heart of my generation, I found myself navigating the post-college landscape during the peak of the Great Recession. Back then, jobs were elusive, while real estate and equities were in surplus. Unfortunately, I lacked both a job and the financial acumen to leverage these opportunities. Fast forward to today, and the scenario has flipped. Jobs are plentiful, but the demand for real estate and equities has inflated them to precarious levels. I'm not advocating for overemployment; rather, I believe what's truly overrated is the reliance on conventional assets for passive income.


This paradigm shift has led to the bloating of real estate, stocks, bonds, and even private equity investments. In essence, the underappreciated gems lie in custom professional services and small businesses—entities too nimble for the implementation of AI and robots that larger corporations use to churn out generic services and products.


Across many professions, mine included, a negative replacement rate prevails. The prohibitive cost of education dissuades many from entering, while the consolidation of professional service firms and institutions hinders credentialed individuals from venturing out on their own. Consequently, countless service professionals find themselves grappling with the challenge of competing on price or scale, often leading to retirement or absorption by larger firms. Theoretically, this trend should create a scarcity, enabling independent professionals to elevate their prices. This shift has already begun with trades during the pandemic, and I anticipate it will extend to service-based individuals by the 2030s.


The proverbial elephant in the room is demographics. Presently, the US is witnessing a substantial surge in the 65+ age group, projected to climb from less than 15% in 2020 to over 20% by 2030.



Considering this demographic shift, it's no surprise that people are paying exorbitant prices for income-producing assets—almost a quarter of the population will be retired! This prompts a crucial question: why not create your own income-producing asset?


Fortunately, I believe many independent professionals can achieve this with the right tools and support. In fact, any business owner in their prime working years should prioritize streamlining operations and working smarter, not harder. This approach opens doors to serving more clients, working less, hiring experienced professionals for a better work-life balance, or even contemplating an exit strategy.

It's not the simplest solution, but I believe it's indispensable for any service-based business. After all, you're working anyway, so why not invest a bit more time and resources now to make life more manageable in the future?

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