A cross-generational 'virtual board' can help young businesses succeed

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Everyone likes to compare the habits of generations. The seasoned generations are critical of young people, while younger generations are skeptical of the older ones, accusing them of being stuck in the past. In my years working with businesses of all sizes, I've seen this tension spark discord, but also remarkable collaboration. People older or younger than you have different perspectives, and that's a strength you can embrace.

The most recent Amex Trendex: Small Business Edition surveyed the attitudes of over 1,100 small-business owners, finding that 92% of all respondents feel confident in their ability to prepare their company for the future, regardless of their age. But the report's findings also highlight that younger and older cohorts face different risks and opportunities, revealing what each generation can learn from others. 

Young entrepreneurs feel confident in their ability to weather unexpected changes. They're boot-strap scrappy and willing to learn from myriad digital resources but may ultimately feel overwhelmed trying to determine which path is the right one for their business. Thinking about their finances, they don't feel connected to institutional banks because they're unsure if large financial service providers can singularly meet their fluid business needs. 

Deepening their skepticism is their experience coming of age during the financial crisis and stewarding their businesses through a global pandemic. Many feel cautious about credit and dubious about taking on debt: Gen Z and millennials are twice as likely (32% vs. 16%) as older generations to turn down business opportunities when they don't feel confident in their cash flow. While they're fearless in many ways, young people may be avoiding making the big bets that can lead to growth. Hiring a bookkeeper, for example, may seem too expensive in the short run, even if offloading those tasks would pay off in the long run. They specialize in the pivot — but they're reaching an inflection point where it's time to dig in. 

Older generations, meanwhile, have also grown accustomed to uncertainty, but are likely to have already accomplished some significant growth goals. Learning how to choose financial tools and partners, then leverage them to capture sustainable growth opportunities, are teachable skills engrained by years of experience. Yet they're slower to adopt new technologies, and there's increasing pressure to innovate with young, digitally native business owners disrupting business across industries and sectors. To stay competitive, entrepreneurs of all ages must be constantly learning. Innovation isn't only competition; it's an inspiration.

Entrepreneurs often try to do too much by themselves. Partners and mentors (regardless of age!) offer enormous benefits. My advice to entrepreneurs is this: Create a virtual board of directors in your mind. Whom can you go to for advice and guidance? Who has a skill set that you're trying to develop? If you find you need an expert in a new area, reach out to trusted contacts and ask for referrals. Build a trusted network and take those people out for coffee and questions quarterly.

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Most importantly, add people from other generations to your inner circle, and keep in touch with individuals who reflect the age and demographics of your customers to better understand how you can meet their needs. Within your company, let digital natives influence your strategy for reaching online audiences, and encourage experienced entrepreneurs who've successfully leveraged institutional relationships to help younger colleagues cultivate their own.

Any business hoping to get ahead prioritizes integrating new technologies into their businesses, but millennials and Gen Z clearly have the edge in embracing and harnessing technology for business success. (60% of millennials and Gen Z said they run a digitally native business, compared to 36% of Gen X and baby boomers.) Older business owners should not underestimate this digital-native superpower: Partnering with one Gen Z tech whiz may allow you to do more with a smaller headcount, saving significant hiring costs in the long term.

A generationally diverse network connects you with suppliers who strike the right balance of experience and innovation. If you're struggling to figure out the right number of suppliers, ask someone who's been in your industry much longer about supplier diversification. Ask what issues they're facing, too, and offer any insight or expertise you might have. Connections and mentorship go both ways, and these touches strengthen your network and keep you connected with your virtual board.

Financial service providers must adapt to the varying expectations of customers across generations, not only in the products and services we offer but in how those services are accessed and supported. Our teams, customers and partners have increasingly divergent viewpoints, which presents both a challenge and an opportunity. The most successful companies will mix perspectives — from seasoned professionals with deep industry expertise to upstart app-savvy innovators — just as we've adapted to provide both always-available digital tools and the comfort of face-to-face customer care. 

Meeting the future head-on requires blending the best of old and new expectations and integrating fresh perspectives with proven strategies. To ensure you're ready to meet the challenges ahead, begin the conversation with colleagues and peers from other generations about how to grow and protect your business. By combining your perspectives, you'll build a stronger foundation for the future.