BMO Harris Bank Financial Tip of the Week: Advice to 'Boomerpreneurs' starting their new business

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Oct 25, 2012, 11:35 ET

CHICAGO, Oct. 25, 2012 /PRNewswire/ -- As part of BMO Harris Bank's ongoing commitment to financial literacy and Helping Make Money Make Sense, BMO Harris is providing weekly financial tips. This week's tip offers financial advice to "Boomerpreneurs" launching new businesses.

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 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.

About BMO Harris Bank

Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.