Brian Wallace, Founder & President, NowSourcing

By 2045, baby boomers are going to pass on over $70 trillion to the next generations. This is more than three times the current U.S GDP, and its implications on society and its recipients cannot be understated. This was the generation to set the current path of the United States, and as they disappear they have the power to yet again set the course.

For many baby boomers, their wealth will go to charities, 14% in particular is predicted to be donated. The largest percentage of their wealth is expected to go to their children and family, those that they spent their life with or those they want to help build a life for. This wealth isn’t just transferred through direct cash or investments though, small businesses are one way baby boomers are moving their wealth that is sparsely talked about.

Today 40% of all small businesses are baby boomer owned. This equates to one in three Americans relying on baby boomer businesses. These businesses are also some of the most reliable and profitable businesses today. All of this together means that baby boomer owned businesses are one essential form of generational wealth, and interestingly, not many are looking to transfer it.

58% of all small business owners have no plans to transition or choose a successor for their business. Many enjoy the fact that their business is their own, and don’t want to worry about setting it up for others. Still, many others are looking to sell, for most baby boomers today have no retirement plans, and the cash influx offered by selling a business is simply invaluable.

This is where the generational transfer exists. The golden goose that is a boomer business is so valuable for a few key reasons. They are highly profitable, they are established, they have strong loyalty, and they likely still have room for growth. On top of this, Millennials today are looking to move away from the corporate world and into the market of small businesses and being their own boss. There are few better places to start for these people than by acquiring baby boomer businesses.

And while this is just one of many resources baby boomers are going to pass down. It goes to prove a point. The future generations of today have had their situation set by the generations before them, no member of Gen Z can claim to be at fault for really any of the problems of the world today. And older generations can’t claim to have had no influence on the world as it exists. So while the baby boomers haven’t been able to create a perfect world for the future generations to exist in, they have a lot of power in their exit to produce one final batch of positive change. 

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About the Author: Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency in Louisville, KY and Cincinnati, OH which works with companies ranging from startups to Fortune 500s. Brian runs #LinkedInLocal events, hosts the Next Action Podcast, and has been named a Google Small Business Adviser for 2016-present. Follow Brian Wallace on LinkedIn as well as Twitter.