Top 11 Myths of Home Businesses by Melinda Diebel

I have a small business providing accounting consulting services which is based out of my home. Most days I LOVE it - it is consistently interesting and incredibly fulfilling. The thing that has surprised me the most is the difference between the perception and the reality of what it means to have your own home business. Here's what I've learned:
top 11 home business myths:
11. You will not have enough work to make money from home. Alot of people are concerned that there will not be enough work for them to make money from home if they start their own home business. Before starting your own business look into the regional market for your skills (or check online if you are hoping to work remotely). Depending on the local market for your skills and experience you may find that there is an abundance of work available.
MY TAKE: One thing that I found useful during my start-up phase was to work with placement agencies and other contractors in order to find work. Generally you will make less money working with other contractors or employment agencies however you will make invaluable contacts and it will allow you to work consistently.
10. You will not be able to afford to take self employment vacations. It is a common misconception that owners of home based businesses can not afford to take self employment vacations. Contrary to popular belief, with proper planning and good fiscal planning self-employed individuals have a lot more flexibility in the timing and length of vacations that they can take. Employees generally have a limited amount of vacation available to them and get paid for vacation in one of two ways. Hourly employees often receive their vacation pay as an additional percentage on every paycheck, whereas salaried employees are often paid their salary as usual during their time off. Similar to hourly employees, contractors should include vacation pay in their hourly rates or job bids. While market rates and competing bids will sometimes determine the profit you make, there is some flexibility in the rates you charge and there are many factors to consider when setting your rates (more on this below).
MY TAKE: My personal experience has been that successful self-employed individuals must choose between the money they would make during a time period and their desire to have time off. I have prioritized having time away from full-time contracts periodically over the money I could earn during that time. It allows me to try out my own ideas and fully recharge before starting a new project.
9. You will not be able to get a mortgage or small business loan. It is a long held belief that home based business owners have a hard time getting mortgages or small business loans. This is not true. With small businesses and consulting firms on the rise, financial institutions have recognized the need to provide better services and comparable mortgages and loans to self-employed individuals.
MY TAKE: I was an employee when I applied for my mortgage however I have experience working with self-employed clients and friends to successfully apply for mortgages. The first thing I have learned is that it is important to shop around. Some people will be able to leverage their relationship with their bank to get a great mortgage that they couldn't get elsewhere but it is important to be sure that you are getting the best terms. Mortgage brokers are invaluable for shopping around as they can find out the terms a financial institution would offer you based on your specific circumstances. It is also very important that as an entrepreneur you are able to provide the bank with clear, organized business records that show consistent business activity for the past few years. I have no personal experience obtaining a small business loan or grant. The best sources of information on this are the websites of the major financial institutions and government bodies.
8. You will not be able to get small business health insurance. Many people are hesitant to start a home based business for fear of living without small business health insurance. There are a lot of great benefits providers out there for people who are self-employed. Government and non-profit insurance providers are available for lower income individuals and many other insurance providers have begun offering reasonable health insurance for all self-employed individuals. The key, as with everything, is to do your research.
MY TAKE: My experience seeking benefits for myself has been that there are many companies offering insurance for self-employed individuals but there are some special considerations. Some companies insist that coverage for less than 3-5 individuals will only be offered based on the results of a physical and they may exclude pre-existing conditions from the coverage they offer. It can also be difficult to get coverage in areas such as dental, optical and for specialists such as chiropractors.
7. You will not be able to save for retirement with self employment. Often people fear that they will not be able to save for retirement from self employment without a company pension plan. Financial planning is the key to saving for retirement as an employee or a self-employed individual. Unfortunately many companies are no longer offering pension plans for their employees and therefore the burden of retirement savings on the employed individual is much higher now. Ironically, this shift has meant that self-employed individuals may have an advantage over employees. Most self-employed individuals make their cash up front and pay less in income tax installments and with-holding taxes. This provides them with the cash flow to invest more money in 401ks and RRSPs during the year than employees. Additionally, self-employed individuals often have the option of "soft retirement" by shifting to part-time work before retiring completely.
MY TAKE: Personally, my switch to self-employment has sparked me to be more cognizant of saving for my retirement. In fact, my pension savings more than doubled in my first year as a contractor and have continued to grow steadily since then.
6. Your self employment income will be too sporadic to cover your costs. It is common for employed people to fear the fluctuations in self employment income that many people experience. With good budgeting and planning most contractors are able to spread their income over the full year. In fact as an employee your income is fixed but as a self employed individual you can tailor your work schedule to earn more or less money as you need it. Many entrepreneurs find themselves filling downtime or earning "overtime" with smaller ventures such as project or interim work.
MY TAKE: Since I started my consulting company I have not had any downtime that I did not plan out as vacation, training or transitional time. Personally I enjoy having one to two weeks off between major projects to work on my own projects and take some time away - therefore I plan for this with both my work schedule and my budgeting.
5. Self employment will look bad on your resume. Truthfully, there are still some places that would frown on some self employment experience on your resume as they may see this as a sign that the person is not suited to be an employee. However, many companies recognize the value of having an employee who shows initiative and has a well-rounded variety of experience. Successful business owners demonstrate many skills that potential employers are looking for such as: leadership; project management; accounting and budgeting; initiative and entrepreneurial spirit.
MY TAKE: In my experience recruiters for full-time jobs will often spread this myth in order to convince you to apply for jobs with their clients. Contracting recruiters will claim that the opposite is true. My experience with employers and human resource professionals has been that they recognize the value of hiring people with the diverse and well-rounded backgrounds that self-employment allows. The main questions that potential employers have are: why did you become self-employed? why do you want to return to being an employee? why now? why here? If you can answer these four questions satisfactorily then even the most skeptical employers will consider your application without reserve.
4. You will make more money with small business earnings. Typically small business earnings are based on higher hourly rates than the effective hourly rate earned by employees and therefore people often assume that contractors make more money for the same amount of work. The truth is that the rates charged by self employed individuals include a premium to compensate consultants for the added risk to the contractor; the convenience factor for the hirer; the costs normally covered by an employer (benefits, pension, some government remittances, vacation, statutory holidays, bonus, double-time, training, supplies, overhead, professional dues and medical or maternity leave); and the cost savings to the employer (administrative and human resource costs such as hiring, termination and severance costs). The larger monetary benefits of working as a contractor seldom come from higher hourly rates but come from lower taxes, more cash flow for pension spending and the ability to control your income by working more or less hours.
MY TAKE: My earnings as a contract worker have been similar to the "all-in" salary and benefits+ amount that I was paid as an employee (with the same growth as my employed contemporaries). The main non-monetary benefit to me has been the ability to work less or more depending on my desire and having more choice over whom I work with and what I work on. The main monetary benefit have been the tax savings I have experienced due to both the additional deductions as a contractor and the additional RRSP (401k) contributions I have been able to make due to the up-front cash I have received.
3. You will be your own boss. You probably want to start your own business in order to be your own boss and truthfully there are many areas of work that contractors have more control over than employees however contractors are not entirely without oversight. As a contractor instead of having just one boss you have many bosses. Every client you have is also your "boss" - they determine what you work on, when you work on it, how you work on it and where you work on it. Further, when working on-site for clients it is necessary to comply with all their office rules and guidelines. The other aspect of being your own boss is the responsibility that comes with it. As your own boss you are the one solely responsible for every aspect of your business from beginning to end. You must be comfortable pursuing new work, applying and interviewing for new projects, working at different places on different tasks, and taking care of customer billing and collections.
MY TAKE: As a contractor I can often negotiate my hours, the location of my work, the type of work I do, the companies/people I will or will not work with and the amount of money I get paid. Unfortunately this does not always mean that in the short-term I never have to compromise for a client or project. Some projects dictate that you work longer hours or work outside your region. The main difference is that I have the choice to reject the project or discontinue the work at anytime without legal repercussions.
2. You will set your own hours and work less. Many people start their own businesses in order to have control over how many hours they work but contractors aren't guaranteed to work less than employees. It is true that once you have established your business you can pursue contracts and projects that allow for more flexible hours and less overtime. There is not guarantee, however, that you will always be able to find such projects. Further, as the one who is solely responsible for every aspect of your business, people often find that they are required to work additional hours in order to establish and maintain their business.
MY TAKE: Personally I have chosen to take contracts with longer hours in past due to other considerations (experience, networking, higher rates, great location, etc...) however for the most part I have strived to find positions with flexible hours and little or no overtime. This has given me the freedom to pursue my own projects and spend more time with my family. This has required a lot of planning and budgeting and has generally led to lower annual incomes then I might otherwise earn however the improvement in my quality of life has made this more than worth it.
and the biggest myth of home based businesses...
1. You will always be able to work at home. The words "home based business" bring to mind images of working at home while wearing your pajamas. Home based businesses often require travel and/or visitation of external offices. Sales and service jobs typically require meetings with clients. Even remote IT personnel often need to visit their head office periodically. The flip side of this is that, the majority of the time, home based businesses can be run from anywhere - with only a phone and laptop.
MY TAKE: I have taken on contracts which require me to work off-site everyday, four days a week or once a week. I have also done work that was completely remote but I find this to be the exception rather than the rule for my field (chartered accountant).As mentioned above though I have also enjoyed being able to work at home, at the cottage, at campgrounds, at family members houses and many other beautiful places. There is definitely a lot more freedom as to where you work when you have a home based business - but you should not rely on the idea that you can run things without ever leaving your home.
Overall, the best way to know what you are getting into is to do some research. If possible talk to someone in your field who has an established business, talk to local recruiters and businesses about the availability of work, look for contract or project listings online. It is also a good idea to sit down and calculate the amount of money you need to earn every month in order to maintain your desired lifestyle - this will provide you with a benchmark to compare expected earnings to. Whether you

Do the Necessary Research on Insurance Providers by Jon Caldwell

According to a study conducted in the U.S. from year 2000-2006, it was found out that the number of uninsured U.S. residents increased by 3.4 million from 2004 to 2006. In the study, it was found that factors like racial and ethnic health care disparities in the U.S. affect whether they would be insured or not. Because of this, it is important that racial disparities be reduced in health care. A step towards achieving this goal is to teach insurance company employees not to be picky in their customers. Another is buying insurance in advance so that people, despite their race, would be given immediate access to healthcare in an emergency.
Life insurance may not be included in the list of 'light topics' that can sparkle up any conversation. However if we think about it, it should be talked about because it is an important topic. There's a lot of things happening, both good and bad, and it is better to prepare for any untoward event than hope for the best and be bombarded with bad news. The right time to deal with it is now. It is not practical to forego buying an insurance until an event compels them to do so. Life insurance should cover your income seven to ten times security. Now that's something worth talking about, right?
In Iowa, the house representatives approves the reform of the health care system. The goal of the reform is to expand access to and improve the quality and affordability of health care in Iowa. The project began by providing health insurance to Iowans and helping small businesses manage the high costs of health insurance. After months of bi-partisan work, there was a noted increase in the quality of health care and thus the project is said to be a success. This is an inspiring example for the rest of the world to follow.
Among the many different type of life insurance in the market today, many people prefer to have a Term Life Insurance. Based from the name itself, Term Life Insurance is specifically designed for a period of time. This length of time is called "term". You purchase this type of insurance and you are guaranteed to be covered for a specified number of years. It may be 10, 15, 20, 25, or 30 years as the case may be. Some insurance companies even offer a term life insurance with an option of returning the premium. This means that you will receive 100 percent of the amount of premiums you have paid for the plan.
Term life insurance is very popular and purchased by many because it is considered the more affordable type of insurance despite the fact that it expires without maturity. However, this type of insurance is normally renewable and it is non-taxable. Because term life insurance is not that expensive compared to other types of life insurance and since it is not permanent, it is best suited for people with temporary need of insurance. It is also for people who are just starting to work and are not financially capable to spend much on life insurance. Unfortunately, the amount of money insured can only be paid if the time of the death of the insured is within the specific term or period of time the policy is still in effect.