BMO: Business Booming for "Boomerpreneurs"
- The psychology behind 'Boomerpreneurs' - many boomers start their own business because they want to work for themselves, not because of financial need - Over the past decade, the number of self-employed workers has increased by 17 per cent; 40 per cent of workers over 65 are self-employed - Entrepreneurial trend could lead to a boost for the Canadian economy - BMO offers financial advice to "Boomerpreneurs" launching new businesses
TORONTO, ONTARIO, Oct 09, 2012 (Menafn - MARKETWIRE via COMTEX) --With a third of the Canadian workforce predicted to retire over thenext five years, a growing number of retirees are looking to use theopportunity to start a business.
According to Industry Canada, 40 per cent of workers over 65 areself-employed and, over the past decade, the overall number of selfemployed workers has increased by 17 per cent. The "Boomerpreneur"phenomenon could lead to Canada experiencing a surge of newbusinesses that, planned and managed prudently, could provide aneconomic boost in the long-term.
"For an increasing number of Canadian boomers, their retirementpicture isn't a definitive shift from work to leisure," said Tina DiVito, Director of Retirement and Financial Panning Strategies, BMOFinancial Group. "Rather, it's more of an extended transition thatinvolves a combination of both."
With Canadians on the cusp of retirement looking to realize theirself-employment dreams, the "Boomerpreneur" trend appeals to many fora variety of reasons. According to Ms. Di Vito, these caninclude:
--Being drawn to the sense of independence that comes with owning one's
--The chance to realize a long awaited dream, but never having had the
time or capital to do so; and
--The desire to keep the mind active and the opportunity for social
interaction that can come with operating a small business.
Ms. Di Vito also noted that, while the additional income generated by abusiness can be helpful, many boomers do not chose to start abusiness for this reason alone.
While there are many benefits to opening a small business inretirement, 'Boomerpreneurs' should understand that entrepreneurshipinvolves an enormous financial commitment that is best managed withthe assistance of a financial professional. Lack of sufficientpreparation could have a negative effect on the business owner.
BMO's Tina Di Vito offers the following tips toBoomerpreneurs-to-be:
--Do your research: Take advantage of the resources and network you have
built over the years and learn all you need to know to set up your
company. This includes gaining industry insight, arranging a new phone
number, deciding whether or not to incorporate the business and looking
into the potential tax implications.
--Consider the pros and cons: Think carefully about why you want to start
your own business. Being your own boss can offer some flexibility.
However, other sacrifices, such as longer hours and a possible decrease
in cash flow - both starting up, and potentially over the life of your
retirement - may be necessary to ensure your success.
--Develop a plan: Stress-test your idea and research your marketplace,
including what products and services you will offer, the appropriate
price point(s), who your potential customers will be and what your sales
targets will need to be to cover your costs. Keep your end goal in mind
as you build your company and maintain a positive - yet realistic -
outlook as you progress.
--Seek outside advice: Speak to an accountant and a small business banker
- financial specialists who can provide insight into setting up your
company, market competition and personal and business capital needs.
For more information on starting a small business, please visit:http://www.bmo.com/home/small-business.
Get the latest BMO press releases via Twitter by following @BMOmedia.
Rachael McKay, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver
SOURCE: BMO Financial Group and BMO Bank of Montreal
Copyright 2012 Marketwire, Inc., All rights reserved.