Sunday, 27 September 2015

Why Ms. CEO has a New Business Department

Ms. CEO's organization has a number of departments. One of them is the new business department.

My current business is essentially the day job I am in. It serves me quite well, pay my bills, give my parents an allowance, feed me, and let me have occasional luxury, some savings -- but no house and no car though.

So, you must be wondering why I spend more time and effort having new businesses (or additional income streams),

How much side income is needed?

I want the side income to be able to cover my current expenditures.

I predict that I would need $4800 per month of side income, based on current expenditues.

As a side note, I will really suggest that all of you do an estimate of how much you need each month too. I was quite shocked when I see the figures, as I thought I didn't live an extravagant life. Well, the main expense would be the ILP that I bought. Luckily the premiums for one of them is due next May (though I get the value after another 5 years), and it will drop the ILP expense to $700, But I may be buying property soon, so this may soon be replaced by mortgage (and more).

So I guess, my aim is to work on how to build up a $4800/ month side income for 2016. Another side note, my current day job is my sole main income for now. Ops!

Why have new businesses (side income)?

Income Security

Yes, I am someone who feels very insecure easily, So having additional income will ensure that if something doesn't work out, I at least income from somewhere else. 

So the main reason for having new businesses (side income) is for income security. 

If you were to look at the amount I am targeting for side income, you will notice that I based it on current expenditure. 

Right now, I am putting all my eggs in one basket -- the day job paying for all my expenditures. However, as we get older, the chance of getting retrenched, and trying to find a job that pays equally may not be some simple. In addition, by being not held hostage by your day job to meet your daily expenses, work will become more enjoyable (I think).

For side income, most likely, you are the boss. The only difference is, while you will always be employed, you may not always get a salary (no business, no money. Simple!). 

So both the day job and the side income both have risks, but at least having alternatives to turn to is much better than being dependent on just one income stream, isn't it?

Diversify Your Skills

I am not thinking of working in the same line as my day job (for my side income). It is in the employment contract anyway, and I don't find it's fair for my company if I use the skills they have trained me in, for other jobs. Also, just like I don't like to have income from just one basket, I do not like to have skills from just one basket. If one day my current engineering skill is obsolete, then I will be obsolete too. Ya? Who knows, the skills that were developed from my involvement in my side income, may come in handy for future day jobs as well,

It's good to be master in at least one trade, and at the same time, be better than Jack in some other trades. 

See things from a different perspective

I am an engineer. And sometimes, working with people from some departments don't hit a chord. 

I mean it is common that for business background people, to be less concerned about potential safety issues, reliability, fit for purpose etc in general, and more concerned about dollars and cents. For instance, a sprinkler is a sprinkler for many (most don't think much about k- factor, temperature rating, etc.). As long as a place is protected with sprinklers, it's good. But some sprinklers cannot be used for protecting warehouse.

Well, while I can't ask people to see things from my perspective, perhaps I could learn things from others' perspective, and fully understand the true implications they are trying to convey.

How to start off with a side income?

I haven't started on it, and thus, not in a good position to tell you how. But in my blog, I will continue to share with you my progress in developing a side income (target $4800/ month) while holding my current day job. Hopefully, I will see the $4800/month in the near future.

Well, but my plan is to start off with what I am interested in or good at first. And work on scaling it progressively to meet $4800/ month . I also need to think of how much time it takes, since I do have a day job (so I can only work on weekends and after work).

I believe the most important thing to do is to research in these two fields:
- internal research to understand your strengths and interests
- external research (on what is currently viable, and what you need to do to achieve that).

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