The situation or context
I’m currently working 3 jobs:
- day job 1: 3 days per week, bringing in $72k/year before tax ($43.7k net after voluntary super contributions plus tax).
- day job 2: 1 day per week, being paid in equity
- side business: ~2 days per week (evenings and weekends), bringing in $35k/year
Plus doing one day per week of carpentry study at TAFE.
My living expenses are $15k. Therefore I have abundant free cashflow at the moment but a marked lack of free time.
I am fitting in work in my business around the edges and often find myself frazzled, stressed and feeling out of integrity when I do business tasks during my day job hours.
My business is growing relatively rapidly particularly with the launch of a new product which has already eclipsed the revenue from all my other products within 3 months:
With more customers, I am finding myself doing a lot of customer support and ad hoc development but don’t really have the time for it.
I also have another product I am meant to be building for the RTO sector but haven’t had the time to devote to it.
One of my goals is to be work optional – to only take on PAYG/consulting work if I really love the company. To get to that point, I need a few things:
- $375k in diversified index funds (currently at $80k)
- >= $15k/year in product revenue (achieved. Currently at ~$35k AUD/year)
- >= $15k in liquid investments (cash and other current assets) to tide me through a period of unemployment. Achieved
The problem statement or frame or primary thesis
I don’t have sufficient time available to build these products (or to enjoy life).
How are your values currently being violated?
- Integrity:
- Having to catch up hours for day job on weekend because I’m getting distracted by the business during the week
- Delivering work behind schedule for clients
- I’ve ghosted a few volunteer commitments because I’ve been too busy
- Not making enough time to spend with my wife on weekends
The variables that govern the situation
- My expenses (are they likely to increase rapidly in the short term? Probably not)
- Relationship with my employer (would going down to 2 days damage the relationship? Probably not because I already told them I was resigning at the start of the year so they know I’m on my way out)
- My other commitments (if I take on new commitments thinking I now have all this free time, I’ll find myself in the same hole I’m in now. I need to be very firm about not committing to anything beyond what I have already committed to)
Is this a high impact, non reversible decision? If not, does it require so much deliberation (note down your rationale here)?
It’s completely reversible. I’ll be starting a new job sometime in 2021 and will probably go back to 4 days per week then. My current job is very flexible and I don’t think they’d mind.
Recognise what you don’t know (as much as what you do)
- How productive will I be with an extra day? Will I squander it?
Do you have an advisor who has experienced these unknowns before that can clarify for you?
I’ve been listening to Startups For The Rest Of Us. They suggest the stairstep model which is basically what I’m proposing.
The complications or complexity as you see it
- How will I ensure that my employer isn’t adversely affected by this change? I have team members who rely on my input and I wouldn’t want them to be blocked on the days I’m not working. I may need to budget 30 mins to answering Slack messages.
Alternatives that were seriously considered and why they were not chosen (think: the work required to have an opinion)
- Shut down the business: possible but seems undesirable when it’s showing promise
- Quit the job completely: possible but I actually like most aspects of the job and don’t want to work on these products full time
Is it possible to trial out your decision? E.g. if you’re considering painting, can you take a week of leave and paint and see how it is?
Yes I’ve asked for two days of leave spread out over the next two weeks and then I have a holiday from TAFE which will mean I’ll have an extra day per week for the next month. This is similar to the amount of extra time I’d have.
Are you leaning?
Yes I want to go down to 2 days.
If you flipped a coin or asked an oracle, what are you hoping they answer?
Do it!
What unique advantages or insights do I have in this situation?
- Flexible employer who wants to keep me on
- Knowledge of the products I’m building
Who is the best person to make this decision? What unique advantages do they have?
Me.
Have you talked through your process with someone (even a rubber duck)?
With my wife. She has no objections.
A paragraph explaining the range of outcomes
- Product might completely fall flat and all the customers I have now might disappear
- Product might grow 10x and then I’d have to decide if I want to do it full time
- Product might grow geometrically
What second and third-order consequences have you considered?
- Impact on other people in my team: I think it would actually be good as it would free up budget to hire a junior developer part time.
- Impact on my mental health: likely positive
- Impact on my relationships: likely positive as I’d have more time and emotional energy
What is the worst-case scenario? Is it acceptable?
- Employer gets outraged I’d propose this and fires me. I can handle it as I have sufficient income from the business + savings to keep me going plus another job.
What is the opportunity cost? By doing this what am I not doing?
- Working at a job I don’t find super stimulating
What is the potential upside beyond the core thesis?
- Helps me to simulate what it would be like to have abundant free time
A paragraph explaining what you expect to happen and the reasoning and probabilities you assign to each projected outcome (The degree of confidence matters, a lot.)
- Employer is fine with it: 90% probability
- Product grows geometrically: 80% probability
- Mental health improves: 70% probability
- Relationship with wife and colleagues improves: 80% probability
How might you feel 10 minutes, 10 months or 10 years from now? (can apply in reverse, how might you feel if you had made the decision 10 minutes, months or years from now?)
- 10 minutes: slightly anxious about how boss will react
- 10 months: probably glad
- 10 years from now: glad I prioritised quality of life
After you make this decision, what will the next question likely be? Will you be able to answer this question?
- What do I do about the other commitments I don’t want to do (e.g. SES, Toastmasters Area Director)? I probably need to write separately about this
The time of day you’re making the decision and how you feel physically and mentally (If you’re tired, for example, write it down, write down any emotions)
I’ve been thinking about this for the last 24 hours and my certainty around the decision has strengthened the longer I’ve spent thinking about it.
Set a review date
In 2 weeks time – I’ll make a call then whether to talk to my boss
Ethical Financial Independence 