This week I want to switch gears to discuss something that I’ve been learning a lot about these last few years, starting a business. Starting your own business is a lot of hard work but can lead to greater financial and personal freedom. You should not expect to get rich overnight (if at all) but if done properly, starting a business can eventually give you much more control over your future. I also feel that this is the most visible way that most people will ever see their tax dollars at work because when you first start a business you need a lot of help from the government. Yes, taxes can help the economy. I find that the federal, state and local governments are the only organizations with a real interest in helping people start successful businesses since they directly benefit from the tax revenues. For most people, you need 3 things to start a business: a business plan, access to capital, and insurance.

I find that the first thing you need to do to build a business is to develop a business plan. This is a document, which clearly defines what you are going to do, how you are going to market your company, how much money you plan to spend and what the expected return on investment will be. The more detailed a business plan the better. You need to be realistic and conservative in your estimates. The best place to go for help in writing a business plan is a small business development center. There is one located in almost every city in almost every state. Many of these are affiliated with universities and do not charge for their services because these centers are normally supported by your tax dollars.

Access to money can occur in one of three ways, all of which require you to have a business plan: Angel Investors, Venture Capitalists and Small Business Loans. If you do not have a lot of very rich friends or an incredibly innovative idea forget about financing your company with Angel Investors. Venture Capitalists also only tend to invest in cutting edge technologies and they don’t so much want to invest in your company as they want to buy it. Working with a Venture Capitalist is more like working for them since they can fire you if your company is not producing enough profit and they always have an exit strategy (sell or take the company public in a few years). For most people, Small Business Loans are the best way to get started. These loans are backed by the government because if your business fails, there may not be anything for the bank to collect.

The last thing that you need to start your business is insurance (health, life and property). This is the most overlooked but important thing to any small business owner. As a full-time employee of a medium or large company, you can expect your employer to either provide health and life insurance or a means to purchase it. As an individual who is self-employed and starting a new business with no full-time employees, you are on your own. If you have a pre-existing condition such as cancer or kidney disease, you may not be able to purchase an individual policy. Insurance companies are much tougher on insuring individuals than groups, especially if they have a less than perfect health record. Ironically insurance is more important for people who are self-employed because if anything happens to them, their families may be hit with a one-two punch of medical bills and a failing business.

Currently there is no government help for people who are self-employed and uninsured. Hopefully this will change if and when the Obama health-care plan is approved. Until then remember that everything starts with a good financial plan. Go to http://www.FastFinancialAnalysis.com and get yours free today.

According to the Chronicle of Higher Education, college savings and investing in prepaid college plans have increased even as our economy got worse. I see this as proof of the value that many people put in their children’s education. As an educator, I applaud those who sacrificed to continue saving for college. Much of our country’s future depends on this. After all, we wouldn’t have a President Barack Obama if his parents didn’t know the value of an education.

Many people don’t know about the financial difficulties that our colleges and universities are experiencing. Private universities are losing money from their endowments through investment losses. Public universities are losing money from state support. This money was used to lower the cost of student education. As a result of these loses, many of these schools are being forced to raise tuition. The good news is that if you are using a pre-paid tuition plan, these increases in tuition may not affect you.

If you are not already enrolled in a pre-paid tuition plan for your children, I suggest you start. Even if your child chooses not to go to college in your state (or goes to a private school), there are still many advantages to these programs. For help in getting started, develop a budget at http://www.FastFinancialAnalysis.com and start researching pre-paid tuition plans in your state.