However, the problem with viewing entrepreneurship as the Holy Grail for their sunset years is that it may not help them achieve wealth.Many are choosing a self-employment, consulting route to entrepreneurship. They gained significant expertise within some specific area, and they become a “free agent” selling their service to a variety of clients. While this can create an income flow, it is not a business model that generally creates a path to wealth.
There is often nothing to “sell” when the boomer entrepreneur really wants or needs to retire. 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 on-going 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 boomers didn’t prepare in their working years, they can start a business when they reach retirement age and it will magically create wealth. It just doesn’t work that way.
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