A few days ago, I tumblogged about creating an R&D fund. I have since decided to implement this, although the percentage of income I set aside may be different. However, an interesting fact is that if I do this, I can spend more of my time on billable activities and basically halt most internal projects until there are some funds in the fund. If this were not the case, even 1% would be a stretch to budget for.
I’m going to enjoy trying this out. I can see several benefits from the start:
- Less non-billable time spent on internal projects
- Better execution of internal projects to avoid depleting the fund quickly
- Ability to schedule in internal projects as I do client work
Disadvantage is that it reduces how much I earn “now” (it’s like a tax that I get back later), but, according to my theory, it won’t actually do that in practice since I would earn less if I wasn’t trying this strategy.
This will be fun.