Wyoming Biz Tips for September

An occasional look at issues facing Wyoming business owners and entrepreneurs from the Wyoming Small Business Development Center (SBDC) Network, a collection of business assistance programs at the University of Wyoming.

By Steen Stovall, regional director for Converse, Natrona, Niobrara and Platte counties, Wyoming SBDC Network

As many Wyoming business owners approach retirement, the state faces a major business succession challenge. Baby Boomers own nearly half of all privately held U.S. businesses, and many plan to retire within the next decade. Yet, fewer than 15 percent have a formal exit plan, putting many businesses -- and local jobs -- at risk.

While some businesses are passed to family members or sold to other companies, many close simply because no successor is available. Employee ownership offers another path, allowing owners to sell their business at fair market value while preserving its legacy and keeping jobs in the community.

What Is Employee Ownership?

Employee ownership is a business model in which all employees have an ownership stake or share in the company's value. Unlike stock options or ownership limited to managers, employee ownership is designed to benefit the entire workforce.

Common Employee Ownership Models

-- Employee stock ownership plans (ESOPs): ESOPs are retirement plans that invest primarily in company stock. ESOPs are best suited for larger businesses -- typically those with 40 to 50 or more employees and at least $2 million in annual revenue.

-- Worker cooperatives: Worker cooperatives are businesses owned and democratically governed by employees. Worker-owners elect leadership and vote on major decisions, often with lower setup and administrative costs than ESOPs.

-- Employee ownership trusts (EOTs): A newer option in the U.S., EOTs use a trust to hold company shares on behalf of employees. Workers typically benefit through profit sharing, while the trust helps preserve the company's mission and long-term stability.

Getting Started

The Main Street Employee Ownership Act expanded access to financing and technical assistance for businesses interested in transitioning to employee ownership. For owners planning retirement, employee ownership can provide a practical succession strategy that rewards employees, preserves business continuity and supports local communities.

If you'd like to learn more about selling your small business, contact your Wyoming SBDC Network adviser who is available to provide no-cost, confidential assistance. To get started today, go to www.wyomingsbdc.org/sign-up/.

The Wyoming SBDC Network offers no-cost advising and technical assistance to help Wyoming entrepreneurs think about, launch, grow, reinvent or exit their business. In 2025, the Wyoming SBDC Network helped Wyoming entrepreneurs start 42 new businesses; support 2,017 jobs; and bring a capital impact of $12.8 million to the state. The Wyoming SBDC Network is hosted by UW with state funds from the Wyoming Business Council and funded, in part, through a cooperative agreement with the U.S. Small Business Administration. Full funding disclosures are available at www.wyomingsbdc.org/about.

To ask a question, call 1-800-348-5194, email [email protected] or write Dept. 3922, 1000 E. University Ave., Laramie, WY 82071-3922.

For more information, go to www.wyomingsbdc.org.

All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.