Boomers may be hitting retirement age or find it tough to land a job in this economy, but many of them aren’t quite ready to quit. Instead, they’re starting businesses as “boomerpreneurs.”
Some just find retirement boring, others are pursuing a passion or a lifelong dream to work for themselves. Still others just want to keep following the American dream of someday striking it rich. But regardless of motivation, they face the same tough road as all entrepreneurs.
There is even a website dedicated to them: Boomerpreneur.
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 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.
Learn all the facts before starting your own business.
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