Are you a baby boomer looking to start your own business? You’re far from alone. The “Boomerpreneur” trend, which involves individuals on the cusp of retirement looking to realize their self-employment dreams, appeals to many for a variety of reasons.
For some, the change has been forced upon them by the tough job market. Others are taking the leap to escape boredom, become their own boss, pursue a passion — or simply in hopes of striking it rich.
Whatever the motivation, entrepreneurs face a tough road.
So how can you beat the odds if you want to join the boomerpreneur boom?
While there are many benefits to opening a small business in retirement, ‘Boomerpreneurs’ should understand that entrepreneurship involves an enormous financial commitment that is best managed with the assistance of a financial professional. Lack of sufficient preparation could have a negative effect on the business owner.
BMO Harris Bank offers the following tips to Boomerpreneurs-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 – 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 be offering, their 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 that can provide insight into setting up your company, market competition, personal and business capital and how it may change over time.