My post from yesterday has created some great discussion at the blog, via e-mail and among business owners I have talked with.
Several folks told me that the high cost of healthcare is keeping them, or people they know of, from starting a business. Let me offer a couple of things to think about on this.
First, when I advise entrepreneurs I tell them that they need to build a business that takes care of their needs. This includes income needs, wealth needs and lifestyle needs. Income needs includes the cost of your total lifestyle. If your business model is unable to give you adequate income to cover your expenses -- including healthcare -- then the model is not right for you to pursue. And for goodness sake make sure you can cover these expenses until your business is profitable through other income and personal savings.
Second, there is no such thing as free healthcare. Socialized healthcare is going to cost money. We will need to raise this money as a country through either increasing taxes or borrowing more money. If we increase taxes that will decrease your income as an entrepreneur. If we run up the federal deficit even further to pay for healthcare, we will at some point very soon stoke the flames of inflation. That will squeeze your operating profits as a small business owner. Entrepreneurs get hit hardest during inflation due to their lack of market power -- their costs go up faster than they can increase prices.
So, once again I have to be the dream-killer for those who want to assume that if they could only get "free" healthcare they could start their businesses. It sounds to me like these aspiring business owners need to get a better business model before they take the entrepreneurial plunge.
Several folks told me that the high cost of healthcare is keeping them, or people they know of, from starting a business. Let me offer a couple of things to think about on this.
First, when I advise entrepreneurs I tell them that they need to build a business that takes care of their needs. This includes income needs, wealth needs and lifestyle needs. Income needs includes the cost of your total lifestyle. If your business model is unable to give you adequate income to cover your expenses -- including healthcare -- then the model is not right for you to pursue. And for goodness sake make sure you can cover these expenses until your business is profitable through other income and personal savings.
Second, there is no such thing as free healthcare. Socialized healthcare is going to cost money. We will need to raise this money as a country through either increasing taxes or borrowing more money. If we increase taxes that will decrease your income as an entrepreneur. If we run up the federal deficit even further to pay for healthcare, we will at some point very soon stoke the flames of inflation. That will squeeze your operating profits as a small business owner. Entrepreneurs get hit hardest during inflation due to their lack of market power -- their costs go up faster than they can increase prices.
So, once again I have to be the dream-killer for those who want to assume that if they could only get "free" healthcare they could start their businesses. It sounds to me like these aspiring business owners need to get a better business model before they take the entrepreneurial plunge.
I think it's a great idea to socialize healthcare as long as everything is covered medications, dental etc. and may be vote on what is considered cosmetic surgery.I know it will be more expensive tax wise but here's the problem doctors are not going to take Medicare and Medicaid patients when I'm in my 60s I'd be willing to pay the price now versus go bankrupt from surgeries that I might encounter when I'm older.I look at it like insurance and insurance is a product that you cannot buy buy when you need.