Baby Boomer Entrepreneur? There’s A Downside
Some baby boomers are thinking of starting their own business, namely consulting firms in which they could use their life and work experience to help others. One downside to this is that say some experts is that without that boomer running it, there is no way for someone else to buy the business and keep the money flowing. Another problem is most boomers don’t know much about selling, especially if they’ve spent much of their time in the corporate world.
Jeff Cornwall, director of the Center for Entrepreneurship at Belmont University in Nashville says, “A consulting business is tied to the activity of the owner and has no residual value that someone will be able to buy. A business has value to a buyer if it creates ongoing cash flow into the future. If the boomer entrepreneur/consultant retires, the cash flow from his/her consulting activities ends. There seems to be a myth that entrepreneurship and self-employment are secret paths to wealth. If these Entre-Boomers didn’t prepare in their working years, they believe that they can start a business when they reach retirement age and it will magically create wealth. It just doesn’t work that way.”
Via Usa News
Comments
2 Comments on Baby Boomer Entrepreneur? There’s A Downside
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Razib Ahmed on
Tue, 11th Apr 2006 7:42 am
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Anthony Lorizio on
Sun, 10th Jun 2007 7:40 pm
Consulting business is most of the time a one man show type of work. Jeff Cornwall, director of the Center for Entrepreneurship at Belmont University in Nashville is right but I am sure this would not discourage the baby boomers.
There is an interesting phenomenon taking place in this exit of the “Baby Boomer” (BB) period. While there are many BBs who will retire from public companies, there are dramatically more BBs who have to sell their company to turn their assets into cash. As these folks exit their businesses their expertise will surely be valuable to up and coming business owners in the private sector of corporate America.
I say, if you want to be a consultant after you turn your assets into cash…go for it!
If you need some help feel free to contact me through the BLOG published at http://www.babyboomerbusinessblog.blogspot.com
I will be happy to share my connections with you. You see, I am a BOOMER too!
This is a great BLOG, keep up the good work.
Tony
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