9 Reasons Why You Should NOT Start a Home Based Business - And How to Overcome Them!

If you're thinking of starting a home-based business, you're probably aware of some of the obstacles you face. But, can you overcome them? Here's a look at 9 reasons NOT to start a home-based business - at least if you're not capable of overcoming them with a little work and determination.

1. You Don't Have a Nest Egg to Start a Business
Regardless of what type of home business you want to start, you need to expect that it will take some time until you start seeing any sort of income that will support you. You can also expect that you'll have some startup expenses and that you'll need to pay estimated taxes. All of these things take money.
Ideally, you should have at least 4 to 6 months of your expenses to draw from. This will give you some time to get your home based business established and, hopefully, establish an income stream from your business.

Workarounds for this Obstacle
If you have access to inexpensive credit or investors who are willing to take a chance on your home based business, or if you have a spouse or significant other who can earn enough to pay your bills while you are getting your business established. You could also consider either starting your home-based business on a part-time basis or taking a part-time job until your business is capable of providing a steady revenue stream.

2. You Can't Get or Afford Health Insurance on Your Own
It's pretty risky to go without health insurance. One substantial illness or injury and you could be bankrupt. If you are going to operate a home business full time, it will be up to you to figure out how you will get health insurance at a rate you can afford. If you have any kind of illness or past medical history, getting health insurance on the open market is nearly impossible, especially as you age.
Ideally, you have a spouse who can get you health benefits on his or her group policy at work. This would provide you with a reasonable premium and in most plans, eliminate the need to pass medical underwriting that might otherwise result in an insurer refusing to cover you.

Workarounds for this Obstacle
You might be able to join a professional organization or union as a self-employed individual that provides group health coverage to its members, although these are becoming increasingly rare and even these policies are getting tougher to afford. Some states do not permit medical underwriting - health insurers are regulated to "take all comers" regardless of any medical conditions you might currently have or have had in the past that have since been addressed.

Higher deductibles can provide affordability to some who are otherwise insurable. A savings program, a tax-deductible medical savings program, or combination of the two, can help you pay your deductibles while you operate your home based business.

3. You Hate Taking Risks
You don't want to place yourself in a situation where you can't sleep at night. Remember, having your own business provides a great sense of freedom and independence, but it comes with the risk of no steady income and making your bills every month can be a very challenging and stressful experience.

Workarounds for this Obstacle
It's very hard to change the emotional part of your dislike for taking risks. The best thing you can do is to provide some sort of safety net. Having that available should make you feel more confident and will go a long way toward reducing your stress levels. Additionally, while many argue that entrepreneurs must be "risk takers by nature", there is such a thing as a foolish risk and a calculated risk. Doing your homework to understand what the real risks are and what their impact could be, will not only help you better prepare for them, but can also help you to better identify which risks you absolutely must avoid in your home based business.

4. You & Your Spouse or Live-In Don't Get Along
If you are married or are living with a significant other or even a roommate or parent, everyone needs to be on the same page. If you are already constantly arguing or fail to see eye-to-eye on most issues, running a home business is going to be extremely challenging or nearly impossible. After all, you don't want to make your day-to-day living situation worse than it already is. With a home-based business, your day-to-day will probably involve being home most days, nearly all day long. That means you'll have little opportunity to escape a tense situation whenever your partner or roommate is also home.

Workarounds for this Obstacle
You need to have frank and honest discussions with your spouse, partner or roommate. Look for ways you can meet half way. Be supportive and try to understand your partner's needs and concerns and ask that he or she do the same. Try to resolve your problems BEFORE you actually go ahead and start your home-based business. Consider counseling if it seems warranted for your specific situation.


5. You Lack the Self Discipline Required for a Home Based Business
Being your own boss in a home-based business will take a tremendous amount of self discipline on your part. There won't be anyone telling you what you should do or when you should be doing it. You'll have the distractions typically found around the home - TV, web surfing, the kids, etc. - competing for your attention every day. If you're accustomed to following instructions and having someone else lay out the details for you, chances are very good that you will not be successful in a home-based business. Success doesn't come easily - it requires persistent hard work - perhaps even harder work than you've ever had to tackle.

Workarounds for this Obstacle
Prevent distractions by setting ground rules in the house. Set a schedule for your daily routine and make sure your family members respect and understand it. Even if your clients aren't setting deadlines for you, set your own and aim to meet them every time. Keep track of the hours you are working on a regular basis. That way, if you slack off you'll see it right away - before it's too late. Set specific production calls - I'll make so many calls today, or write so many articles, etc. and then reward yourself for meeting those goals.

6. You Don't Know What Kind of Home Based Business You Want
I often receive email from readers indicating they are anxious to start a home based business and they want me to tell them what home based business they should start. The point is, no one can tell you what home-based business you should start - you have to decide that on your own. If you know you want to start a small, home based business but don't know what to do - wait until you've figured that out. Otherwise, you'll go from business to business and never realize success.

Workarounds for this Obstacle
You need to do your homework, and that includes understanding what makes you tick, what turns you on and what you are good at. You need to have a good idea of what your passion in life is all about because if you can follow your passion, your chances for success in your home based business are much greater because it will drive you to do whatever is necessary to succeed.

Also, don't expect to be successful right off the bat if you have no experience or skill level related to the home-based business you want to start. You would be far better off getting experience from someone else first before going it alone. That way, you'll have a broader understanding of the challenges and potential pitfalls that await your home-based business before you encounter them and you'll increase your chances of being able to overcome them. You'll also be better able to market yourself since you can point to your first-hand experience and be better able to explain to a prospect why they should pick you over your competitors.

7. You Lack the Self Confidence Needed to Run a Home Based Business
Running your own home-based business means you have to believe you can succeed. If you don't you're basically wasting your time and money. You need to be able to handle rejection - not every prospect will turn into a paying customer, and you need to have confidence in your abilities or you won't be able to convince others to have confidence in you.

Workarounds for this Obstacle
Start small - preferably even before you start your own small home-based business. Look for something you can accomplish and then do it to the best of your abilities. Be proud of your accomplishment and start building on your success. It also helps to have others who believe in you - especially when things aren't going so well. Occasionally we all need a pep talk to get back in the game or get back up on the horse.

Believe that you DESERVE success and that you are very capable of achieving it. This is very difficult to overcome if you've spent most of your life with self-esteem issues, but it doesn't mean it's impossible. Sometimes a trusted partner who can help you with your small business can also get you through the rough times.

8. You Don't Have the Time to Run a Home Based Business
Starting and running a home-based business is going to take up a LOT of your time - probably much more than you ever thought it would. Even before you start, you'll need a considerable amount of time to plan and research. After your small business is up and running, you'll need plenty of time because it's likely that you'll be working more hours than you worked as an employee because you'll be wearing all the hats.

If your time is already over-extended - with social activities, family obligations, etc., you need to be sure you can devote the time your business will need to survive and prosper.

Workarounds for this Obstacle
It's easy to say that we're too busy - for exercise or for operating a home-based business. If you really want your own business you're going to have to find and make the time. See if you can get other family members to help you with some of your obligations. Try to set aside specific times for your home based business - including the time you'll need for preparation.

Keep track of the time you spend on your business and non-business activities because it will help you find areas where time is being wasted or could be better spent on more fruitful activities. You may also discover that you really do have the time - you're just not 100% sure you want to start a small business and you've been using time as an excuse or "safety valve" to protect you from your fears. If that's the case, this is probably not the right time for you to start your business.


9. You Have No Tolerance for the Record Keeping Needed in a Home Based Business
Maybe you're the type who just wants to go out there and DO IT. However, operating a home-based business takes some discipline in bookkeeping and record keeping in addition to all of the fun stuff you'll be doing. At the very least, you'll need to keep good records for tax purposes, like earnings and expense and you'll also need to keep good records on your clients so you can stay on top of who's paying on time and who isn't.

Having a good record keeping system and documentation on your business also helps make it easier to sell your home-based business should you want to do so later on. Just because your business is home based doesn't mean you can neglect your record keeping.

Workarounds for this Obstacle
If you just can't stand keeping records, you could look for software to help you manage your bookkeeping and record keeping tasks. You could also consider having a partner or friend with good small business bookkeeping skills handle the bulk of these tasks for you.

Even if you don't prepare your own tax returns, your records need to be well organized and complete to make things easier on your tax preparer and to make sure you get the deductions you have coming to you.

25 Ways to Save Money on Healthcare

This article first published in Parents Mag, has some great information about healthcare savings! While this "Healthcare Bill" may or may not be coming through soon, may or may not be a good thing and may or may not break the bank all at the same time...  Get discounts on prescriptions, negotiate with your doctor, bargain-shop for a health plan. In this economy, you need to take more control over your family's medical bills.


Find the Best Plan  
1. Shop for the Best Plan
When selecting a health plan, don't just choose the one with the lowest monthly premium or the one you used before. Benefits can change significantly every year -- as can your family's health needs. The best way to bargain-shop: Jot down your family's average number of doctor visits per year, routine prescriptions, dental cleanings, and other services. Compare what you'd pay over an entire year for these items on each plan. Don't forget to include monthly premiums and deductibles.

2. Consider an HD Plan It might feel like a big switch if you're used to paying $20 office co-pays. But a high-deductible (HD) health plan can save you hundreds of dollars per month in lower premiums. These plans (which have an annual deductible of at least $1,100 for individuals; $2,200 for families) are great if your family is healthy and doesn't usually visit the doctor too often. Another benefit: Most HD plans qualify you to open a health savings account (HSA), where you can sock away (on a pretax basis) money to pay your insurance premiums and out-of-pocket health expenses. Better yet, unused HSA money continues to grow tax-deferred, year after year. An HD plan might not be right for you, though, if family members have chronic (and costly) health conditions, you're not disciplined about saving money in your HSA, or if having such a high deductible makes you uneasy.

3. Join a Discount Club If you don't have dental insurance, look into plans like AmeriPlan (thisisap.com), Careington International (careington.com), or HealthInsurance.com's dental-discount cards. Participants in these plans agree to give members up to a 60 percent discount. You'll pay a monthly membership fee (ranging from about $12 to $30), and you'll probably need to pay cash at the time of service. Check each plan's coverage in your area -- some regions have fewer participating providers than others.

AmeriPlan
Careington International
HealthInsurance.com 

4. Join the Farm Bureau Believe it or not, you don't need to be a farmer to join your state's farm bureau. Simply by paying an annual membership fee (usually less than $50) you're eligible for all sorts of benefits -- including discounted group health insurance in some states. If you or your spouse are self-employed, this might work for you. For more information, type "farm bureau" and your state's name into your Internet search engine.

5. Always Have a Safety Net If you or your spouse are switching jobs and have to wait for your new health insurance to kick in, ask whether you can extend your policy from your old employer. (The COBRA law requires some, but not all, companies to let you.) If it's not possible to keep your old plan, buy a short-term family insurance plan so you're never without coverage. These policies are relatively inexpensive and can usually be activated within a day or two. Compare plans online at ehealthinsurance.com.

Know Your Coverage 
6. Take Advantage of Extras
Your health plan may offer valuable services you don't hear much about, so poke around its Web site to learn what's available, says reader Kimberly Hoody, of Phoenix. Some carriers, for example, have nurses on call 24/7. They can tell you how to safely remove a splinter or whether or not your child's cold symptoms warrant an immediate doctor visit (and another co-pay, ka-ching!). Some plans also offer discounts on acupuncture, gym memberships, massage treatments, and weight-loss programs.

7. Get Regular Checkups Don't skimp on well-child checkups just to save money, says Jessica Banthin, a healthcare expert at the U.S. Department of Health and Human Services. These exams are usually inexpensive or are fully covered by insurance, and they help your doctor detect health problems early. Routine vaccines will also lower your child's risk of illness -- and your risk of facing high medical bills.

8. Look for Special Services Many health plans have programs for patients with ongoing conditions like asthma or allergies, including discounts on preventive care, helpful newsletters, and more. Reader Jaimee Starr's son Austin, 8, has asthma and gets chronic bronchitis in the winter months. After talking with her health-plan representatives, the Springfield, Ohio, mom learned she could buy a home nebulizer from them for just $55 instead of renting one from her pharmacy for $180. Health-plan reps also steered her to a drugstore that offered lower prices on her son's asthma medication.

9. Flex Your Spending If your employer offers a flexible spending account (FSA), you'd be nuts not to use it. FSAs are tax-sheltered accounts that you can use to pay for out-of-pocket medical costs such as office and prescription co-pays. Reader Lisa Chavez-Melo, a human-resources professional in Albuquerque, New Mexico, suggests "guesstimating" what you'll spend on medical expenses each year and putting about 20 percent less into your account so you don't have to worry about scrambling to find last-minute ways to spend it before it disappears. (FSAs are a "use it or lose it" plan and the money must be used within the year.) Some good ways to spend that last bit of FSA money: replacement glasses or contacts, dental cleanings, and even certain over-the-counter items like bandages, infant pain reliever, and contact-lens solutions.

10. Read Bills Carefully Up to 50 percent of your doctor or hospital bills may contain mistakes that end up costing you money, says Jane Cooper, president of Patient Care, a consumer-advocacy group in Milwaukee. Something as simple as an incorrect billing code could prompt your insurance to pay less than expected or even reject your claim. Other common errors: mistakes in an account number, claims with incomplete information -- even claims sent to the wrong insurance-company address by a doctor. Read your benefits booklet carefully to make sure your plan is paying all it should. If you catch an error, send a certified letter to your insurer. Follow up in a few weeks to make sure the mistake is corrected.

11. Don't Accept "No" If your insurance company won't pay for a service you think you deserve, don't just give up. Appeal the decision. If you're denied again, contact your state insurance commission. That agency can mediate a dispute between you and your insurance company. If you win, you could save yourself hundreds, or even thousands, of dollars.

12. Remember to Network When making an appointment, always double-check that the doctor is still in your insurance plan's network. (Many come and go.) And ask to see in-network providers when you go to the hospital or an urgent-care center. Just because a facility participates in your plan doesn't mean every professional (the nurse-practitioner or radiologist, for instance) does. Also, if you need to see a doctor when you're out of town, call your insurance provider's toll-free phone number to find out the best way to get services that will be covered.

13. Split the Cost If you need extensive dental services, ask your dentist about starting the work in December and finishing it in January. Depending on your dental-plan benefits, you may get better coverage by splitting the cost between the two plan years.

 Discuss Options with Your Doctor 
14. Bring a List
Get a copy of your insurance company's list of covered prescription medications (a "formulary") and share it with your doctor. Many insurers separate drugs into several pricing "tiers," so some medicines cost you more than others. If your doctor knows what's on your insurer's list, he can select the best medication for you at the lowest price. Also, if your plan requires you to get a referral to a specialist, take your insurance plan's preferred-provider list to your primary-care appointment. Your doctor can easily pick out the best specialist who participates in your plan.

15. Be Upfront About Finances
Are you short on cash? Do you have a high insurance deductible? Don't be embarrassed to tell your doctor or dentist. He may be able to suggest less-costly treatment options or even agree to lower fees. In fact, a Wall Street Journal/Harris Interactive poll found that three out of five people who negotiated with their doctors received discounts.

16. Slice Your Pills
Believe it or not, many high-dose prescription pills, from allergy meds to antidepressants, require exactly the same co-pay as their lower-dose counterparts. Ask your doctor whether you can safely split a higher-dosage pill in half, and cut your costs too. (You can't do this with controlled-release medications.)

17. Ask to Sample It
Your doctor's cupboards are full of free drug samples, courtesy of the pharmaceutical industry. If your child is getting shots, ask for a trial-size pain reliever in case he needs it later. If you're trying a new antibiotic or rash cream, your physician may even have enough samples to cover your course of treatment. Also, check out the drug company's Web site, which sometimes offers coupons or free samples.

Take Preventative Measures  
18. Watch Your Head
Make sure you and your kids wear helmets when you ride a bike, a scooter, or a skateboard, since most serious injuries are the result of falls.

19. Get in a Lather
Americans plunk down big bucks every year on cold remedies and flu treatments when the best preventive medicine is plain old soap and water. Teach everyone in the family to scrub their hands for about 20 seconds before eating, after playing outside, or after being in contact with someone who's already sick.

20. Prevent Tooth Traumas
Starting around their first birthday, kids should get twice-yearly checkups from the dentist, says Keith Morley, DMD, president of the American Academy of Pediatric Dentistry. Preventive care nips problems in the bud before they become more costly. You should also talk to your dentist about getting sealants for your child's molars. (Sealants are a liquid plastic material applied to your child's back teeth to prevent them from decaying.) Many insurance companies cover the cost, but even if they don't, get them anyway: They'll probably save you money in the long run.

21. Steer Clear of the ER
Never use the emergency room as a substitute for your regular doctor. You'll pay much more, and you'll probably wait longer to be seen, says Parents advisor Alice Domar, PhD. If your child feels lousy on a Friday morning, make an appointment with the doctor for that day so you don't end up in the ER over the weekend.

22. Save on Supplements
Don't spend your hard-earned money on vitamins, mineral supplements, and herbs since there's not enough data to support their effectiveness, says Dr. Domar. Most vitamins and supplements will pass right through you, which means money down the toilet -- literally! The notable exceptions: calcium and vitamin D supplements, which have been proven effective.

Shop Around 
23. Pay Less for Prescriptions
Go generic, for starters. In almost every case, generics are just as good as name brands and are much cheaper, says Catherine Tom-Revzon, a pharmacist at The Children's Hospital at Montefiore, in New York City. Second, compare costs since prices vary significantly from store to store. Your best bet may be a warehouse club like Costco or Sam's Club. (You don't even need to be a member.) Another option: If your plan has a mail-order pharmacy, you might be able to get 90 days' worth of prescriptions mailed to you for two co-pays.

24. Keep an Eye on Discounts
Remember that you don't have to buy glasses or contact lenses from your optometrist or ophthalmologist. Federal law requires them to give you a copy of your prescription so you can buy lenses anywhere you like. Even if you don't have vision coverage, insurance providers may offer discounts on glasses or contact lenses. If not, look elsewhere: Some Automobile Association of America policies include eyewear discounts. Warehouse clubs and online retailers also offer deals.

25. Go to Dental School
If you need expensive dental care, consider a clinic at a local dental school. Well-supervised students staff these clinics and charge between 20 and 50 percent less than what you'd pay at a professional dental office -- big bucks if you need a costly crown or implant. Search for dental-school programs in your area at ada.org.