Why have a side business?

Welcome to the 5th edition of the Notes by Chris B Co newsletter. We’ve hit 20 subscribers (hi, Mum!). Glad to have you with us. I’ve also reached the end of my first month at Quad Lock and a milestone for my business, Chris B Co.

Here's what I've prepared for you today:

• CB Co Update: Why have a side business?  

• Productivity Tip: Using your Flow State 

• What to listen to this week: Scaling up with Ayman Al-Abdullah

Please find any of my previous editions here if you've missed them.

01 / CB Co Update

Why have a side business?

I was going to open today with the news that I’ve just engaged my first client of the new business - before realising I’m yet to explain what I’m doing.

Chris B Co is a reboot of my original freelance business.  My first client as a designer came in my 3rd year of Uni in 2006.  After graduating at the end of 2007, my first roles were in education and more freelance work.  I wasn’t earning enough to pay GST, but I registered a business and ABN and put together the barest of professional admin-type documents needed to get by.

Over the years since, you can see I’ve had a small number of roles as a Designer and now a Product Design Engineer. All the while, I continued to operate the freelancing but without ever promoting it.  I never really stopped “freelancing”, but I let my business fall into neglect for a few years while focusing on another venture.  That venture ended in January 2023, and after a few months of considering my future, Chris B Co was reborn from the ashes.

But I’ve just started a new job, why have a side business?

It comes back to a few long-held beliefs and some that I’ve come across in my last nine months of reflection.

Diversify

If you’ve done any research into investing, one of the key points is to diversify your investments.  That way, if one investment struggles, the pain is spread. If you invest all your money into one stock, and it tanks, you’ll have lost nearly everything.  But the losses are contained if you invest 25% into four different stocks. Hopefully, the other stocks will have grown and covered your losses.

I think about this in the same way with my work. Although unlikely because of the steps I take to remain current in my industry, what would happen if a dramatic shift in technology overnight made my role half as valuable as it is now? If that work were our family’s sole source of income, we would immediately be under pressure to meet our mortgage repayments and living expenses.  

In my state Victoria, the government introduced a system of limited taxi licences in the 1960s. It existed for decades until the early 2000s, when the Victorian government began deregulating the taxi industry. This deregulation allowed taxi companies to charge higher fares and operate more flexibly. However, it also led to an increase in the price of taxi licences.  In 2016, the Victorian government legalised Uber and other ride-sharing services. This significantly impacted the taxi industry, as Uber offered riders lower fares and greater convenience. As a result, the demand for taxi services declined significantly.

The price of taxi licences has fallen by more than half, and many taxi drivers were forced to sell their licences at a loss, while others have been left with large debts.

I’m the CEO of my life

I came across this idea recently in a podcast (discussed further below) where you are the CEO of your own life.  Ayman Al Abdullah says that a CEO is typically interested in investment.  Where are they to invest the company’s money and expect a return. 

As the CEO of your life, you should use the same mindset.  Where best can you invest your resources (time and money) to expect a return?  They are both precious.  Time is a non-renewable resource that should be spent wisely. 

I’d say that I’m investing most of my “free” time (when my kids are asleep and wife is doing her own things) on building something that will provide a return.

Bring together many ideas

A secondary benefit of diversifying is how it leads me to learn from more people and places. Instead of working in one industry and on one range of products - I can work in many sectors and on a much more extensive range of products and projects.  Of course, I’m dedicated to my employer and extremely honest and dedicated with my time.  My employment contract is for 38 hours a week.  As a designer, limiting yourself from thinking about your projects 24/7 is challenging.  It is a learned skill, being able to switch off and spend time with your family or think about your hobbies.  Yes, sometimes there is overflow, but if you keep that to a manageable amount - the variation in your projects and tasks will supercharge your development.

Previously, I’ve written about incremental improvements and compounding interest's power.   As Sam Davies said, “Changes that seem small and unimportant at first will compound into remarkable results if you’re willing to stick with them for years.”

The other benefit I’ve enjoyed from having my projects and clients is the ability to test more ideas than you might sometimes be able to with a sole employer.  Most employers will have a process to follow and rules to abide by.  When you become your own boss, you can experiment with the best of the techniques and ideas you’ve encountered.  Perhaps there are more efficient ways of doing things, quicker or cheaper, to reach the intended result.  And don’t forget the compounding effect.  The more you can experiment and fail, the faster you will learn the best elements to take you forward.

How this benefits myself and my primary employer

What is in it for my employer?  Well, I become a better employee.  I bring with me more experience.  As a designer, I can draw from a broader range of projects than another designer without those opportunities.  My personal development is fast-tracked.  My ability to consider wider implications, like business outcomes tied to product development, is heightened.  My communication skills are better refined.  All in all - I think an ambitious designer seeking out their own clients is an excellent hire for an employer.

What are my goals with the business?

In no particular order

• Give more to others

• Earn additional Income

• Exploration and experimentation

• Personal growth via upskilling and learning

• Lead me to a place where I can work less in the future

• Build a machine and become an engineer of the systems that manage it

Summary

The game of life has always interested me, and I have no intention of sitting by and letting it unfold around me.  I want to make a positive impact for my family and those that I love.  The idea of my own business still serves me well now, as it has in the past.  Until it is no longer required or part of my future, it will continue to be something I invest in and learn from.

02 / Productivity Tip

Using your Flow State

This week, I completed Ali Abdaal’s Productivity Masterclass on Skillshare.  It’s a short course at just under two hours, with a series of modules and questions after each module to reflect upon.

The module on the topic of The Mythic of Multi-tasking asked:

What’s one or more situations when I was in my “flow state”? 
What circumstances and mindsets led to that?
Can I manufacture those conditions for other stuff I need/want to do?

I found it easy to identify when I’m in my “flow state” as it’s typically when I’m in my happy place, 3D modelling in Solidworks.  I think that the circumstances leading to this “flow state” are the design concept work required before modelling to set up the boundaries for the project. I would know the desired outcome, product features needed, and elements that must be catered for. With these lined up, I can get into the flow and build with my mind and the software acting as a tool.

My challenge now is to manufacture these conditions for other aspects of design projects to get into a “flow state” more often.  To achieve this, I think I need to set clear goals for each task and understand what it will take to achieve that goal.  I will keep you updated on how I progress in achieving this.

03 / What to listen to this week

Scaling up with Ayman Al-Abdullah

Ayman Al-Abdullah is the former CEO of AppSumo and now coaches CEO’s on how to scale their business from seven figures to nine.  You might think that the league he operates in is well outside where you and I are in our daily lives.  But he comes across as thoughtful, understanding and focused on what he has to offer.

I always enjoy Chris Do as a host, and this episode is no different.

Thanks so much for reading.
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