Starting a business is relatively easy. Anyone can start a business. Starting a business the right way — legal arrangements, strategic planning, hiring staff, purchasing office equipment, marketing, etc… — will cost money.
When speaking with consultants and other solo-owned practices, I’m interested to learn how they started their businesses, what they invested in and why they made the decisions they did when they opened shop. One area I’m surprised where many new business owners will not put resources is into protecting themselves. It’s an area overlooked because the business owner doesn’t think anything could happen to him or it can be cost prohibitive to provide yourself benefits. Either decision puzzles me because who will protect you if you are injured or your family?
I must make it clear that I am not a financial advisor or endorse any products. Just sharing experiences that I’ve learned from this past year when I started my company. Benefits you should have as a business owner (unless you have a spouse or partner who has coverage) includes:
- Health care — This is not debatable. You need it. Do not expect the federal government to provide it.
- Disability — This is important to have. Do you have enough saved to pay your expenses? What is your replacement income?
- Life –– What will happen to your family if you died early? Is your business covered, too? Term insurance is relatively inexpensive.
- Long-term care — It isn’t just for mature adults. Purchase it while you are young and relatively inexpensive.
Treat yourself like a company. You need to provide yourself and family with benefits. It can be expensive but the alternative of not being protected is unthinkable.
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