Need A Job? Create A Small Business

Unemployed workers who are finding it hard to secure a new job in this economy might want to consider starting a small business instead. Whether you become an independent contractor, a consultant providing similar services to clients who might have used your former employer, or you turn your hobby or secondary set of skills into a money-making enterprise, the best way to get a job in these tough times might be to create your own.

More and more Americans have opted to start small businesses during this decade, which has featured two major recessions. In a 2008 report titled 'The Small Business Economy,' The U.S. Small Business Administration said that the number of nonemployer firms increased from 16.5 million in 2000 to 21.1 million in 2007. The SBA also noted that black self-employment rose 27.6% between 2000 and 2006. With the massive number of layoffs recently, the increase in the number of small businesses and the growth of black self-employment is likely to continue. CNN.com recently reported how many people were using the bad economy as a reason to pursue careers they always wanted to.

The Obama administration is encouraging small business growth by taking steps to increase lending targeted at small firms. Earlier this month, the White House announced a plan to unlock credit to small businesses that includes guarantees of up to 90% of the value of loans made to qualifying small businesses and the temporary elimination of fees the SBA charges on loans to small businesses.

There are also a number of organizations prepared to help aspiring small business owners get started.

The Small Business Administration website offers tools and resources to help you increase your knowledge as a business owner and gain financing to grow your enterprise. You can also apply for contracts to supply the government with goods and services.

The Minority Business Development Agency offers contracting opportunities for minority-owned businesses, as well business development, planning and start-up information that can be helpful.

The Internal Revenue Service lists more than a dozen websites with small business resources -- everything from dealing with work and safety guidelines, to listing local state and city agencies that assist small businesses. Some of these websites help entrepreneurs deal with legal and tax matters that are important to running an enterprise.

Websites like Entrepreneur.com and Inc.com feature articles and other information catering to small business owners. Need some top recommendations? Entrepreneur magazine currently has a feature, "The Best 4 Resources For Start-Ups" and its archives have a compilation of "Small Business Checklists" that is very helpful. Inc. currently has information on "How To Set Up a Partnership Agreement" (for those who don't want to start a business on their own).

The AOL Small Business website also has a wealth of information to help beginning business owners start and manage their firms effectively.

And the National Foundation for Teaching Entrepreneurship is a nonprofit organization that has programs that teach young people how to start and manage their own businesses.

Starting a small business might be your best chance at finally landing the job you truly love.

10 Urban Money Myths

Money Myths That Just Won't Die

There is an awful lot of bad advice out there when it comes to managing your personal finances. Like rumors, these myths get told and retold as if they were true and spread like wildfire even though they are flat out wrong.

Click through our gallery to see 10 urban money myths that you would do best not to believe.

(To see the 10 myths, mouse over the photo at left and click on the right arrow.)

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Money Myth No. 1: This is a Great Opportunity to Buy Stocks

If you believe that, I have some real estate in Florida (with just a little water on it) that's also a great buy. If your financial advisor is telling you that now is the time to buy, fire your broker. Are you kidding me?!

We know that you are desperate to make back some of your investment losses, but buying stocks in this environment isn't the way to do it. The bottom is nowhere in sight right now, and this is no time to invest new money -- don't let anyone tell you otherwise.

Cassandra Hubbart, AOL

Money Myth No. 2: Everyone Needs Life Insurance

Think the insurance agents are behind keeping this money myth alive? Here it is in a nutshell: If you have someone who really DEPENDS on your income -- then, yes, you likely may need life insurance to help them maintain their standard of living if you're gone.

If you're single, retired or part of a dual income household with no dependents, you may not need life insurance at all. And, please, don't count on life insurance as a savings plan or as a source of "emergency money" that you can cash in down the road.

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Money Myth No. 3: Credit Counseling Will Hurt Your Credit Score

No, no, NO! We're going to scream this one from the rooftops till we get through! Credit counseling will not affect your credit score one iota.

In fact, Fair Isaac (the company that calculates credit scores) does not factor enrollment with a credit counseling service into their scoring criteria. However, some lenders will see that "in credit counseling" notation on your credit report as a red flag, so you may have trouble getting new credit while you are in counseling.

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Money Myth No. 4: Money Markets are FDIC Insured

A money market mutual fund is most certainly NOT FDIC insured. However, a money market DEPOSIT account -- which earns interest at a rate set (and paid) by the bank -- IS FDIC insured.

The fact that the names of these two vehicles sound similar may be the source of the confusion. Just suffice it to say that, basically, any deposit-type of account where your bank pays you interest is probably insured (but double check!) That includes any traditional type of bank account -- from checking and savings to CDs and IRAs. All of these are insured by the FDIC up to the limit of $250,000 per qualifying account.

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Money Myth No. 5: You Get What You Pay For

Despite overwhelming evidence to the contrary, this money myth won't die.

While it's true that sometimes there IS a link between price and quality, more often than not, you can get a great product at a great price if you shop around and/or know what to look for.

Take generic drugs, for example. They often use the exact same ingredients as their higher-priced name brand counterparts, and many are considered to be just as effective when stacked up against the big names. So why pay more?

Amey Stone, AOL

Money Myth No. 6: Co-Signing a Loan is No Big Deal

Think co-signing a loan for a friend or relative is "not a big deal"? Think again.

Your signature is essentially telling the lender, "Sure, come after ME if my loved one defaults ... or even misses ONE payment. I'll take care of it!"

And, yes, this even applies to your own children. We know of one couple who co-signed a loan for their grown son -- one day, he just stopped making payments. Guess who's now making those car payments for him ... to avoid ruining their own credit?

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Money Myth No. 7: You Don't Need a Will if You're Leaving Everything to Your Spouse

More than half of Americans die without leaving one. Big mistake.

Don't make the all-too-common assumption that your spouse will automatically get everything -- the house, the car, your investments -- upon your death. Without a will, there's no guarantee. That goes especially if you have children and/or surviving parents. The law in most states will award one-third to one-half of your property to your surviving spouse and divvy up the rest between your children and your parents, if they're still living.

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Money Myth No. 8: Your Debts Will Be Wiped Out When You Die

It's a sad fact: Your debts may live on long after you do. Sure, some of your creditors may choose to forgive your debts, but more often than not, they'll try and collect from your estate.

If you have a trustee, that person is legally obligated to contact and pay off any debts before distributing money or property to your heirs. But, even if you don't have a trustee, your creditors can still stake a claim against your estate.

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Money Myth No. 9: You Need a Certain Amount of Money to Start Investing

Don't let this money myth rob you from investing in your future. Even if you can only invest a few dollars every month, you still have plenty of options.

As a first step, you can open an online savings account that pays interest. Or you can buy stock directly from a company, though a Direct Stock Purchase plan. You can also pick up a low-cost mutual fund for as little as $50.

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