4 tips for boomer entrepreneurs

Whether doing freelance consulting work, buying a franchise or opening a specialty business, more than half of boomers (54%) have started or considered starting a small business before retirement, finds a TD survey.

Boomers with the entrepreneur bug want to be their own boss (58%); make more money (53%); or have a sense of personal achievement or pride (50%).

Read: 5 pointers for business buyers

Also, boomers believe the greatest challenges to starting businesses include securing finances (42%), taking on additional debt (38%), finding new business or clients (37%) and balancing business and personal finances (36%).

“While thorough planning, access to finances, hard work and passion are a must for all business owners, there are specific considerations boomers should think about,” says Dan Demers, vice president, TD Canada Trust.

Read: Prepare to sell your business

Here are some tips.

1. Consider personal finances. A boomer client should look at his credit rating, personal debt, mortgage payments and retirement savings, as well as the financial situation of his spouse if he has shared assets or debts.

2. Focus on financing for your small business. Access to capital and credit is critical. Start by accurately projecting start-up costs and business expenses.

Read: Help small businesses through big issues 3. Develop a business plan. The plan can be scaled depending on the type of business your client wants to start. However, every plan should include a business model, financial plan, long-term vision and short-term goals.

4. Plan to retire. Whether selling the business, handing the reins to an employee or family member or simply winding down the work, make sure clients have a succession plan.

Read: Boomers keep a keen eye on retirement

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.