Tackling Business Financing and Health Insurance When Starting A Business

Entrepreneur Business Financing and Health Insurance

5 Successful Women Entrepreneurs Share Tips On Tackling Business Financing and Health Insurance When Starting A Business

Two of the most common obstacles to starting a business are navigating the world of health insurance and finding ways to finance your new business.

Even when a business has low overhead, income is still needed to support your regular household expenses. Health insurance is a multi-layered issue, and health insurance coverage is essential for someone like me who has autoimmune conditions (so, a chronic illness).

For some women, this is not an issue. For instance, some women have spouses who can include them with their health insurance. But this solution does not work for single women or women with children.

"I want every little girl who’s been told she’s bossy to be told again she has leadership skills." — Sheryl Sandberg, COO at Facebook

Last week, I polled a women's entrepreneur Facebook group. Here's what I asked, followed by answers from three of the group's members.

The Questions I Asked

If you left your career in the last four years to work for yourself: 

  1. How were you able to fund your business?
  2. How were you able to find health insurance?
  3. Do you have any other tips?

Answers From Five Women Entrepreneurs

Janice —

  • I think it depends on what you are doing and the risks you can take. For me, it was building a nest egg (the ability to live normally for 6-12 months with no income - it took me almost three years to get here financially and mentally). Also, I'm not sure what your corporate role looks like, but if you have the option to ramp down slowly, do half-time, consulting, etc., that can be a nice Segway into having more time for your business while maintaining some income.
  • The marketplace isn't a great option, but it's okay. There are also lower-cost (barely any coverage) options for catastrophes.
  • Also, depending on your personality, having a supportive team (financial advisor, mindset/business coach, therapist, etc.) to be better prepared mentally and otherwise. When starting a business, mental stamina is needed for the ups and downs and accountability. It can be scary going into the unknown, and others can help lighten our deepest fears. Having a team of trained people can be super helpful.


Paula —

  • I needed a nationwide health insurance plan because I travel. And I found a great agent who helped me out with that. He showed me quality, affordable, and tax-deductible plans. That's what I did about my health insurance.
  • It's wise to wait until your business is at least generating an income and has proven viable before leaving your job. Beyond that, sometimes, you have to take that leap of faith!
     

Jennifer —

  • I still had money in the bank.
  • I used a health insurance agent.


Michele —

  • I retired from my job, so I have a small pension - I was able to take an early out.
  • I am an independent insurance broker, so I help others with their health insurance, depending on their state of residence.

 

Ashley —

  • Don't leave your day job without first stockpiling at least three months of expenses.
  • Compile a comprehensive Business Plan. You'll want it for the research value and to use as a blueprint, but you'll need it if you're financing, regardless of whether that's conventional or otherwise. Not for money — not even for the support! A great many people self-finance. But I'd quickly become accustomed to not relying on friends or family!
  • Go through your state for health insurance.

In Summary

My takeaway is that there are a variety of approaches to tackling the health insurance challenges and varied strategies for funding a new business. Each person with a goal of starting a business needs to self-evaluate and find the best process. It may be one of the options mentioned above, or it may be something else entirely. Do your research and find a coach. Starting a business and being your own boss is within your reach.


What's your takeaway? Share your answer in the comments! I'd love to hear your thoughts. 
 

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About Marcia 

Marcia Hylton spent a decade and a half planning and allocating multi-million dollar annual marketing strategies for Fortune 500 companies. She later launched a national award-winning marketing agency, which served hundreds of small business owners, NBA celebrities, and Fortune 500 companies. 

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