31 January 2008 One Comment Print This Post  Email This Post

Whether you are the quintessential cubicle dweller or you are climbing a corporate ladder, I think you should start your own business. I’m not telling you to quit your day job, or even to spend hours on building your business. I’m talking about regularly selling items on eBay, fixing up a house to rent out, even mowing your neighbor’s lawn. I’ve got ten reasons right here that you should start a side business while working your day job.

1. Build wealth. No matter how hard you work for an employer, there’s always going to be a limit to how much you are able to earn. Even with bonuses or commissions, your employer is going to get the lion’s share of the money. A side business has the potential for growth, even if you don’t want to switch over to full-time entrepreneurship. You can always sell a few more items on eBay, or hire a neighborhood kid to take on a few simple projects.
2. Tax deductions. As an employee, you have the ability to claim only a few deductions. In most cases, you are better off claiming the standardized deduction, because your itemized deductions get you less money back. But if you have a side business, you can claim a wide variety of deductions, even if your business isn’t making much money. Even buying printer paper could be a write-off!
3. Teach your children. A small business can provide you with opportunities to teach your children about earning money and building a business — invaluable knowledge that can given them a big leg up in the long run. Furthermore, if your kids are also your employees, there are several opportunities for saving money tax free for their educations.
4. Layoff protection. There are a lot of people worrying about a recession right now, and whether they should be expecting layoffs. If you have a side business and you’re laid off, you still have an income source, even if it isn’t as big as you are used to. That cushion can protect you in a tough job market.
5. Experiment. You can try out new ideas with your own business that you’d have to go through layers of office bureacracy to get approved — if you can convince your employer to take a chance at all. Even better, you get all of the benefits if your idea works out.
6. Career development. In a lot of jobs, it’s next to impossible to build the skills necessary to move up the corporate ladder in your current job. A lot of employees find themselves having to switch jobs or go back to school to get the skills they need to advance. A home business can provide you with a place to develop those skills, which you might even be able to turn into a raise at your day job.
7. Best of both worlds. You can have the good aspects of your job — health care, benefits, reliable salary — and of owning your own business — flexibility, adventure, independence — and still miss out on the negative aspects of full-out entrepreneurship.

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