The biggest surprise for many baby boomers who start their own businesses is the high cost of health insurance.

"Coming from corporate jobs where they've had employer-subsidized group coverage, many suffer sticker shock when they begin shopping for health insurance for themselves," said Gene Fairbrother, a consultant for the National Association for the Self-Employed.

Premiums for individual policies can easily exceed $500 a month, and that's assuming a pre-existing condition doesn't disqualify someone.

"The best solution is to get onto a working spouse's group policy," said Lynn Karoly, a senior economist with the RAND Corp. "Otherwise, it's catch as catch can."

Diane D'Agostino-Smith, who started a life-coaching consultancy out of her Rowlett home, bought an individual policy through AARP's "health care options" program and pays $540 a month. Before that, she purchased coverage through the National Association for the Self-Employed.

Bob and Cathy Dammeyer's 3-year-old frozen-drink distributorship spends more than $6,000 a month for coverage for the couple and their four full-time employees.

Bob Moos