The Coming Wave of Small Business Transitions
Northwest Arkansas is on the brink of a small business succession crisis. With nearly 40% of small businesses in Benton County owned by baby boomers nearing retirement, the region faces the real possibility of losing long-standing, community-rooted companies—not due to poor performance, but due to a lack of succession planning.
Industry data suggests that while 70% of small business owners hope to pass on their businesses to family members, only about 30% succeed. Even more concerning: two-thirds of small businesses have no documented succession plan at all.
Without a plan, business owners risk losing not only their personal legacy but also jobs, customer relationships, and community identity tied to their enterprises.
A Local Solution: Buying to Preserve, Not Just Profit
Doug and Anne, recent transplants to Northwest Arkansas, are helping fill that gap. As buyer-operators and co-founders of woman-owned firm 5WS, they specialize in acquiring and growing existing small businesses from retiring owners. Their mission isn’t about flipping companies—it’s about sustaining the vital small business infrastructure that supports local economies.
Rather than start from scratch, the couple focuses on “acquisition entrepreneurship”—an increasingly popular alternative to traditional startups. They seek businesses that already have loyal customers, trained staff, and solid systems, but lack a clear plan for the next generation of leadership.
A Three-Year Runway to a Successful Exit
According to Doug and Anne, the ideal transition process takes about three years. In that time, owners can:
- Clean up and document financials
- Create standard operating procedures (SOPs)
- Secure leases and address ownership-dependence
- Build and train leadership to reduce key-person risk
These steps not only make a business more attractive to buyers, but also help ensure that staff and customers experience continuity during the handoff.
From Tax Strategy to Talent: What Owners Often Miss
A common mistake? Tax strategies designed to minimize profits today can hurt a company’s sale price down the line.
Additionally, businesses where the owner handles all sales or management face lower valuations due to dependency risk. By developing internal leadership and delegating authority, owners not only free up their time—they increase their business’s market value.
Anne emphasized the importance of culture, particularly for women-owned businesses.
Why This Matters for Bentonville and Beyond
As Bentonville positions itself as the global hub of omnichannel retail, its economic foundation still relies on thousands of small businesses. If even a fraction of those vanish due to poor succession planning, the ripple effects could be significant—fewer jobs, lost expertise, and weakened community identity.
Solutions exist, and they start with early action.
Doug and Anne encourage any business owner—whether eyeing retirement or just curious about next steps—to begin planning now.
Legacy, Not Loss
Doug and Anne are currently pursuing their first acquisition in Northwest Arkansas and aim to grow a portfolio of small businesses under their stewardship. Their work highlights a simple but powerful idea: with the right planning and people, local businesses don’t have to disappear when their founders step away.
They can be passed on—and built up—for the next generation.
