New poll shows many could use financial advice
The changing face of Canada’s small businesses is highlighted in a new poll which also reveals a lack of financial planning by many older entrepreneurs.
CIBC’s survey found that more than three-quarters of Canadian business owners aged 60 or older do not have a formal plan for retirement or in the event of an unexpected emergency.
A third of older business owners plan to close, sell or transfer their business in the next year but many do not have a clear plan of how to do this, and to do so without landing themselves with a large tax bill.
"The biggest mistake small business owners make is not having these conversations early enough," says Sean Foran, Managing Director, Business Transition Planning, CIBC Wealth Strategies Group. "It's important to involve a team of experts including lawyers, accountants and financial advisors to achieve a higher valuation, maximize retirement income and reduce their overall tax bill."
At the other end of the entrepreneurial journey, Canada’s young business owners are planning to grow or expand their businesses in the next year, internationally in many cases, and are likely to be seeking investment.
"Business owners typically wait until later in their growth cycle to expand abroad, but it's happening far sooner with the rise of digital commerce and adoption of new technologies that create more cost-efficient growth opportunities," says Andrew Turnbull, Senior Vice-President, Small Business Banking, CIBC. "That's helped accelerate the pace of growth, particularly for younger entrepreneurs."
CIBC’s survey found that more than three-quarters of Canadian business owners aged 60 or older do not have a formal plan for retirement or in the event of an unexpected emergency.
A third of older business owners plan to close, sell or transfer their business in the next year but many do not have a clear plan of how to do this, and to do so without landing themselves with a large tax bill.
"The biggest mistake small business owners make is not having these conversations early enough," says Sean Foran, Managing Director, Business Transition Planning, CIBC Wealth Strategies Group. "It's important to involve a team of experts including lawyers, accountants and financial advisors to achieve a higher valuation, maximize retirement income and reduce their overall tax bill."
At the other end of the entrepreneurial journey, Canada’s young business owners are planning to grow or expand their businesses in the next year, internationally in many cases, and are likely to be seeking investment.
"Business owners typically wait until later in their growth cycle to expand abroad, but it's happening far sooner with the rise of digital commerce and adoption of new technologies that create more cost-efficient growth opportunities," says Andrew Turnbull, Senior Vice-President, Small Business Banking, CIBC. "That's helped accelerate the pace of growth, particularly for younger entrepreneurs."
