Cost Benefit Analysis: A Comprehensive Guide (Time x Energy)
Thinking about starting a side business while juggling your full-time 9 to 5 job? You’re not alone. Many people dream of turning their passions into profitable ventures outside of work hours. But before diving in, it’s paramount to consider the cost-benefit analysis—specifically, the costs related to your most valuable resources: time and energy.
The Investment: Your Time and Energy
Let’s be real, time and energy are limited resources. After a full day at work, it’s normal to feel drained, both mentally and physically. No wonder most of us need to Netflix and chill. If you have kids, you won’t have that relaxing time in your bath until they’re in bed!
So, how can you “discover” time and get “energized”?
The idea of spending your evenings and weekends building a business might sound exhilarating at first, but it’s important to weigh how much time and energy you realistically have. It’s not realistic to work without a break. If you want to build something like I did, you also need to know when to stop.
How many hours can you comfortably dedicate to your side hustle each week? More importantly, do you have the energy to maintain a high level of productivity after a full day’s work?
It might be surprising, but the amount of “Netflix-and-chill” activities that we currently do during the week while we’re super busy might be draining your time bank. In a similar way, if you decide to spend some time with others, it might drain your energy if it’s something that you don’t really want to do. You should make a cost-benefit analysis of your activities so that you can then plan for success.
Your Time and Energy are Priceless
Companies hire our brains to work. They hire us to solve problems so their business can grow. Do it for a certain amount of hours a day, and your mental energy bank for solution-solving goes down. No wonder, after work, you want to chill doing activities that allow your brain to recharge. That’s normal.
However, more often than not, we end up over-chilling and giving our priceless time and energy to activities that actually drain us! For example, maybe going for a coffee once a week with a certain friend who loves to gossip is what you think you need. But if, after doing it, your energy levels are drained, perhaps that activity isn’t helping you that much.
This is important because if you want to allocate some time to creating a side business, you’ll need to be super aware of your time and energy levels.
Use Personal Space to Change Your Life
If you’re serious about making the most of your time and energy, consider using tools that can help you track where these resources are going. The Personal Space Notion Template is a fantastic way to understand where your precious time (and money) is going. By using this template, you can also create new atomic habits that will help you massively create a side business.
This will help you easily make a cost-benefit analysis of many activities in your life, including becoming aware of what you do just to please others. I know this is a very complicated topic and something very hard to achieve if you give more than you take. If you’ve been at the last place on your priority list, it’s time to flip it and put you at the top!
Is It Worth It?
At the end of the day, the decision to start a side business while working a full-time job boils down to whether the benefits—both tangible and intangible—are worth the investment of your time and energy. If you can strike the right balance, the rewards can be substantial, from financial gains to personal fulfillment. But it’s essential to go into it with your eyes wide open, understand the costs involved, and plan accordingly.
You can apply this same mindset to anything you do in your life (including attending parties!) You’ll be surprised how much time you get by being aware of two simple things:
- that your time is invaluable (it runs out and never comes back)
- and your energy is something not everyone can afford!
If you’re ready to take things to the next level, consider the Hobby to Business: Bye 9 to 5 Course. This course will provide you with all the information you need to transform your passion into a successful business.
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