There’s a growing force of entrepreneurs — Moms, says a BMO Bank of Montreal survey.
It shows that optimism reigns within the female demographic, with 74% of female business owners optimistic about the economy, and three quarters (76%) currently investing in their business. The data was released as part of the BMO Year of the Entrepreneur Series, which will highlight varied groups of entrepreneurs in Canada.
The growing mompreneur trend is one that is offering many entrepreneurial mothers the balance needed to raise a family without putting a successful business career on hold.
In fact, Statistics Canada estimates that women account for 80% of new business owners, and a large percentage of these women are moms.
Industry figures show 70% of mompreneurs are under the age of 40, while one in ten are in the 40-49 age bracket. Mompreneurs aged 50 years and older are the second largest demographic and account for 20 per cent of the segment, increasing at a rate of four per cent per year.
Cathy Pin, vice-president, commercial banking, BMO Bank of Montreal, notes that the transition from life at the office to running your own business can be a difficult one, and that prospective mompreneurs should carefully examine the pros and cons of running their own business before getting started to ensure long-term success.
“An important factor for any successful small business owner, and mompreneurs in particular, is finding that work-life balance,” said Pin.
Ms. Pin offers the following tips for mompreneurs-to-be:
- Do your homework – Leverage the wide array of resources and tools to learn what you need to know to set up your business, including setting up a business number, whether or not to incorporate the business and the potential tax implications, including Harmonized Sales Tax.
- Weigh the lifestyle pros and cons – Think carefully about why you want to start your own business. While being your own boss can offer some flexibility compared to the corporate world, other sacrifices will need to be made over the first few years, including longer hours and potentially less cash flow, to ensure success.
- Put a plan in place – Stress-test your idea and research your marketplace, including what the product and price point will be, who your audience is and what your sales targets will need to be to cover your cost.
- Consult an expert – Speak to an accountant and a small business banker. Many bankers specialize in small business and can provide insight into setting up your business, market competition, personal and business finances and how they may change over time.