King of the mountain, finally

For many Boomers, retirement is an opportunity to start a business and become their own boss.

15 percent intend to work for themselves until they die, according to a new Ipsos Reid (Canada) study of Boomers who have either retired early to start their own business, or intend to do so, reports MarketingCharts.

Conducted for BMO Financial Group, the Ipsos study further found that one in five (21 percent) intend on running their business for more than ten years into their "retirement," four in 10 (38 percent) intend to do so for somewhere between six and 10 years.

Just 16 percent say that they will do so for less than five years.

Among other findings of the study:

• The workload Boomers are taking on is formidable:
  • 12 percent indicate that they will or are working more than 40 hours a week at their business.
  • Most (44 percent), however, will or are spending between 26 and 40 hours a week, while fewer (32 percent) will or are spending 11 to 25 hours a week working in their business.
  • Only one in eleven (9 percent) are working or plan to work less than 11 hours in their business.
• Major reasons for Boomers' operating or intending to operate their own business:
  • A plurality want to stay active in their retirement years, with four in ten (40 percent) saying they need to keep occupied.
  • 29 percent cite fulfilling a lifelong dream.
  • 26 percent say they need the money.

• Line of work that Boomers are intending to or are involved in:
  • Three in ten (27 percent) indicate that they will become or are currently involved in consulting.
  • Retail (13 percent), entertainment (4 percent) and hospitality (4 percent) are other sectors in which Boomers are starting their own businesses.
  • Male Boomers (33 percent) are significantly more likely than their female counterparts (20 percent) to become involved in consulting work.
  • Women (17 percent) are more likely than men (10 percent) to become involved in the retail sector.
• Risks and fears of operating a small business:
  • Nearly a quarter (22 percent) of Boomers intending to be or that are currently entrepreneurs indicate that their biggest fear is not having enough customers
  • An equal proportion mention that not having enough money is their biggest fear in running their own business.
  • Men (20 percent) are more likely than women (15 percent) to suggest that they do not have any fears when it comes to running their own business.

• Regarding financing their businesses:
  • A plurality (32 percent) indicate that their savings will be the means by which they pay for their start-up costs.
  • Significantly fewer indicate that they will finance their business via a line of credit or loan (19 percent), or income from investment (13 percent).

About the data: These are some of the findings of a BMO poll conducted by Ipsos Reid between October 2 and October 10, 2007.

The online survey is based on a randomly selected representative sample of 304 Boomers, aged 45 to 60, inclusive, who either retired early and are currently running a small business, or intend to start a small business when they retire from their current job.