With job layoffs rising, personal debt at all time highs and home equity values falling, the sensible among us are developing an extra revenue stream. One way to do this is to set up your own online business.

Starting a new online business does not mean that you have to give up your current job. You can set it up doing extra work in your evenings and weekends and keep your income from your current job while the income from your new business grows.

So what do you need to do to maximise the chances of success of your new business?

Find something that you're either good at or passionate about. Then you need to research and plan properly.

Here are 8 questions - answer them in full for your situation and you'll have the basis of a sound plan for your business:

1. What are your skills?

Can you teach? Can you write? Can you sell? Are you technically proficient?

2. What do people want to buy? In a recession.

Luxuries and frivolous things are not going to be at the top of people's shopping lists if they are struggling with the effects of recession. Necessities are.

3. Is there a market?

Is there a demand for it? How much would people be prepared to pay for it? What will affect demand for it (e.g. weather, strikes, competition) and how? How much competition is there? How much is your competition charging?

4. What will the process be?

How are you going to make it? How are you going to market and sell it? How are you going to deliver it? How are you going to get people to pay you for it?

5. What are the dependencies?

Do you need premises - if so what type? Do you need outside suppliers - if so for which parts? Do you need licences - if so what licences? Do you need special equipment? Do you need staff?

6. What are the costs?

Premises, raw materials, suppliers, marketing, delivery, license costs, staff costs, lawyers and accountants, day-to-day operational expenses.

7. How much money can you make?

How much can you sell it for? How many can you sell in a week/month/year? What sales channels will you use? How will you promote it?

8. Do you have sufficient funds?

What are the start-up costs? What are your marketing and promotion costs? How long before you can break even? Where is the funding going to come from?

It doesn't matter what type of business you're thinking of, going through that checklist is a good way to make sure you've got most things covered.

Use the answers to those questions to create your business plan.

The good news is that you can mark a lot of the items above as 'not applicable' if you can start an online business.

With an online, affiliate marketing business, for example, your start up costs would be negligible, your delivery and logistics costs zero, you would have no need for special equipment or premises and no need for separate outside suppliers.

But you still need to develop a plan!

It's important to remember that, whether your business is online or off-line, it's still a business.

Don't be taken in by all the promises of easy money online. It simply isn't the case - if it was everyone would be doing it!

But it IS possible to make good money online - as long as you treat it like a real business.

There are lots of resources available to help you with developing and promoting your online business - just make sure you pick top quality ones.

And run as fast as you can from anyone who promises that you can be making thousands of dollars each month for little or no work.