Cool Shit Budget

A framework for allocating time and money towards activities that don't have clear ROI but can lead to unexpected benefits and innovation.

Core Concept

• Allocate 10-20% of time and money towards things without clear ROI
• Focus on activities that are fun, interesting, or amusing
• Similar to Google's "20% time" policy which produced Gmail
• Like Facebook's hackathons that created the Like button

Key Benefits

• Can lead to unexpected innovations
• Good for culture and creativity
• Creates space for experimentation
• Allows for serendipitous discoveries
• Removes pressure of immediate results

Implementation Examples

• Random meetings with interesting people
• Experimental projects
• Creative content creation
• Fun side projects
• Activities purely for learning

Success Stories

• Google: Gmail came from 20% time
• Facebook: Like button came from hackathons
• Shows value of unstructured innovation time

Guidelines for Use

• Don't expect immediate ROI
• Focus on things that sound fun or interesting
• Allow for complete failures
• Keep it separate from core business metrics
• Make it a consistent part of operations

Why It Works

• Creates space for unexpected connections
• Removes pressure of immediate results
• Allows for creative thinking
• Can lead to major innovations
• Builds better culture

The key is having a dedicated budget (time and money) for things that might not work but could lead to unexpected positive outcomes.