Side Projects Kill
fr.anc.is
fr.anc.is
You can't be head down in your business 100% of the time; that's just plain unhealthy. You need time to step back and focus on something else for awhile, so that you can come back fresh and full of new ideas.
The good life is all about balance. You can be the jackrabbit who's always first in line, but I'm still going to get my slice of pie, despite stopping to smell the roses.
Budgeting time is just like budgeting money. You just have to make sure you're spending it well. It's best to be diversified, so spend some of that working time on something which can bring in an alternative revenue stream. It may not pay off right away, but it could pay off huge in the end.
I think it depends on the type of work. We're developing software, and this can be done practically anytime. Personally I go to office very late (to have some time with my kid in the morning), and often return early enough to also play in the evening. Then, after putting her into bed, I can work again until 02.00 AM. But it's also important to mention that your wife (or spouse) has to tolerate this, too! :)
And to side projects: I think they're even more important the more time you invest into a certain single project, to look beyond one's own nose. They keep you open-minded, and sometimes even integrate into your current main project.
Side projects are a way to experiment and broaden your knowledge of technologies. Focus is good, but prolonged focus can lead to boredom and resentment.
Giving employees the chance to vent their creativity with new and fun technologies (via side projects) often leads to much happier employees. There is also a built-in feedback loop that allows that knowledge to flow back into the company with better practices, architecture or just the use of better tools.
Let me summarize it this way: Side projects are the best form of training you can provide for your employees.
And that's why Google has 20% time.
One approach is to look for future needs and do quick startup related R&D projects in place of true side projects. This doesn't have all the benefits of real side projects though. And it has some real disadvantages too. It still feels like work and can lead to resentment and burnout if you aren't careful. But this the best compromise I've found.
Hacker: Scratch your itch, build something!
Freelancer: That itch will cost you money! You could be working during that time.
Compromise: Build something on the side (rather than client work) which will bring in cash. This is good for me because it diversifies my income.