Reasons to Start a Side Business

Battling that student loan? Trying to whittle down that credit card debt? There are so many people in debt and struggling to stay afloat. Tackling your finances is hard enough for the debt-free but having multiple elements of debt adds a whole other range of difficulty to the task.

It's the usual idea of 'decrease your expenses, increase your income' but for a lot of people, it's simply not that easy with high rent and low wages.

The solution is a side business, something you can run outside of work hours that can bring in funds on top of your standard 9-5 income (and potentially become your future career if that's what you're aiming for.)

Apart from being a way to keep you from going entirely insane, here are a few more financially oriented reasons to start a side business:

Increase your income

Working more than one job has attracted a stigma of poor decisions and poorer lifestyle and such many are loathed to take on a second or third job and complacently struggle away. It doesn't matter what you're doing (though I'm not sure you can pull off a lemonade stand at your age unless its organic, gluten free, sugar free, carb free, paleo, flavour and preservative free lemonade prepared in a commercial skitchen and meeting all qualifying food standards, but there are businesses or jobs you can create or take on to bring in additional income. The teen jobs: babysitting, housesitting, cleaning, delivering brochures, working at a fast food joint or retail store. The adult jobs: contracting your services out of hours ie mowing lawns, doing people's taxes, helping overseas companies with their IT support since your night time is their day time, selling your things, affiliate marketing etc. The entrepreneur: creating your own contracting business, selling goods, creating something out of thin air that changes the entire plain of business as we know it - do the last one, it'd be nifty.

Pay Down Debt

If you're constantly in the red, using overdrafts to pay off overdrafts or credit cards to pay bills, you're in an endless cycle of debt. If you've already tried restructuring your debt with bank loans, starting a side business allows you to chip away at it that much faster. Once the debt is gone, it's far easier to 'save for a rainy day' or for that house deposit and it'll also make it oodles easier to just get through the month without the struggle.

To Change Careers or Start a Business

If you're looking to change careers, you could be out of a job for a few months and even then, depending on their pay cycles, you could be without an income for up to a month. Similarly if you're starting a business, you'll need a lot of startup capital, even if it's not for the business specifically as you;ll have your everyday expenses to cover while you're out of work, preparing to make your millions. Having a side job helps you to make the transition a bit easier, helps you to save and can potentially become that new startup you're planning once you have the funds to put your full focus on it.

To Save For a Specific Goal

Need a new car? Want to go on a holiday? Saving for a house deposit or startup business? How about just an emergency fund for if your cat needs surgery or something breaks down and needs to be fixed immediately? A side job helps you to save because it's money that you otherwise wouldn't have. Set up a separate bank account and have the income from your business or second job go directly into that account. Opt for a high interest or term deposit account to ensure you won't touch it (because if you do, you lose out on all the interest and sometimes get charged a penalty fee). In no time, you'll have a great, growing fund of accessible cash (but not too accessible).

On a non-financial note, a side business or job is also a great way to explore your hobbies in a more professional and passionate capacity. If you love fashion and love to style people then set up a styling business for yourself, contract yourself out to friends and coworkers and start by making a name for yourself. Not only is it a great way to build your brand before you officially launch but it's also a good way to work out if this business is something you can wholly commit to without losing your passion.

Try it out, the average millionaire/billionire has seven streams of revenue. Seven. You can start with two.