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A side business goes by several names: part time business, moonlighting, taking a gig, side hustle… it's a business you start in your spare time – typically because your life is busy enough with another job, travel, children, etc.

Why is starting a side business now essential?

Reason #1: We can no longer rely on just one source of income. Traditionally, 9-5 jobs have been seen as the best means of financial security. Not anymore! With the recession hitting incomes, and personal debt levels rising, you another source of income that can add to your finances, should anything happen to your primary income source.

Reason #2: A side business adds that little something extra to your finances. If you're a mom with little kids, you often don't have the time to devote to a full time business. Yet, of all times, having a child is when your finances are taxed the most. By starting a part time business, you can relieve some of the stress caused by the extra expense of your lovable, but very expensive child.

Reason #3: A side business is a great way to test out your business idea. No matter how much market research you conduct before your business starts, nothing else beats getting out there and opening your business. By starting small, you can test out your idea, see what clients want, and then, if you want to, plan for growth and go bigger.

Reason #4: A side business works for those who want the security of an income from their full time job, aren't ready to step out yet. Consider starting a side business as a way to get your feet wet. By having the protective blanket of your job, or other income, while you have a business, you make better decisions, are less stressed and can take your time to determine when you choose to leave your job.

A word of caution though. Don't depend on the security blanket too long, or you might not grow, either at your job or at your business.

Reason #5: A side business allows for balance and flexibility. Starting a side business gives you the balance and flexibility you need. If you have the business only to supplement your income, you shouldn't spend more time than necessary to complete your task. A full time business is different because it's essential to have some structure in place before you start. With a side business, you can just start, once you've identified what business you want to do. You don't have to be tied to your business – if you choose to work on a project or with a particular client, depending on your income needs, you can choose whether or not to take the gig.

Recommended Reading

• To get some ideas for starting a side business, I encourage you to download the booklet on the right: 20 Innovative Ideas to Make Extra Money this Weekend.
• Read why flexibility in business is so important
• More reasons why you should start a side business

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