The 4-Hour Workweek by Timothy Ferris

The 4-Hour Workweek by Timothy Ferris

Elimination

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The End of Time Management

Being effective vs. being efficient

Efficiency is still important, but it is useless unless applied to the right things.

Pareto principle

80% of outputs come from 20% of inputs

Being busy is a form of laziness

Lack of time is actually lack of priorities

Parkinson's Law: a task will swell in (percieved) importance and complexity in relation to the time allotted for its completion

Identify the few critical tasks that contribute most to income and schedule them with very short and clear deadlines.

Dedication is often just meaningless work in disguise.

Am I being productive or just active?

Am I inventing things to do to avoid the important?

If this is the only thing I accomplish today, will I be satisfied with my day?

Do not multitask

"task creep": doing more to feel productive while actually accomplishing less.

Low-Information Diet

Selective ignorance

Increased output requires decreased input

Ask people "what's new in the world?"

Read one hour of fiction before bed

To learn something new:

Select one book about the topic by someone who already did what you want to do.

Read only the parts relevant to immediate next steps

Use what you read to draft intelligent questions for experts in that field

Replace information gathering (reading, news, etc) with talking to the people in your life

"Will I definitely need this information for something immediate and important?"

The art of nonfinishing

Starting something does not automatically justify finishing it.

The Art of Refusal

Not all evils are created equal

Time wasters

Easiest to eliminate

Create systems to limit your availability via email and phone and deflect inappropriate contact.

Limit email consumption and production

Use two telephone numbers

Treat phone calls as urgent

Respond to voicemail via email

Meetings should only be held to make decisions

Define the end time of meetings

Do not permit casual visitors to your cubicle

Use the "Puppy Dog Close" (ie - "just this once"

Time consumers

Batch activities to limit setup costs and provide more time for dreamline milestones.

Empowerment failures

being unable to accomplish task without obtaining permission or information.

Set or request autonomous rules and guidelines with occasional review of results.

Automation

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Outsourcing Life

Goal is to free your time to focus on bigger and better things

Build a system to replace yourself

Get a remote personal assistant

Don't limit yourself, just ask if something is possible

Eliminate before you delegate

Unless something is well-defined and important, no on should do it.

Refine the rules and processes before adding people

Which VA to hire

Determined by cost per completed task, not cost per hour

Get a trial first

Use a VA firm instead of solo operator

Aviod misuse of your information

Never give them debit cards

Create unique login for VA for your websites

Avoid common complaints

Make special request for type of VA you want at the outset

Give precise directions

Request regualr status updates on tasks

Tasks should be completed in no more than 72 hours (Parkinson's Law)

Send one task at a time, no more than two, and always prioritize

Finding the Muse

Goal: to create an automated vehicle for generating cash without consuming time

Step 1: Pick an affordably reachable niche market

Find a market, then develop a product for them

Be a member of your target market

Which social, industry or professional groups do you belong to?

Which of the groups have their own magazines?

Step 2: Branstorm (do not invest in) products

Pick two markets you are most familiar with that have their own magazines

The main benefit should be encapsulated in one sentence

It should cost customer $50-200

It should take no more than 3-4 weeks to manufacture

It should be fully explainable in a good online FAQ

Option one: resell a product

Easiest but least profitable

Option two: license a product

Dealmaking intensive but higher profit margin

Option three: create a product

Create new product prototype

Find a generic product that can be repurposed for a special market

Sell only through one outlet (to avoid price wars)

Information products

20-50x markup

Time consuming to replicate

You don't have to be an expert

Paraphrase and combine points from several books

Repurpose content that is in the public domain

License content or compensate an expert to help create content

How can you tailor a general skill for your market ("niching down")

What skills are you interested in that you--and others in your markets--would pay to learn?

What experts could you interview and record to create a sellable audio CD?

Do you have a failure-to-success story that could be turned into a how-to product for others?

Read 3 top selling books on your topic and summarize on one page

Join two or three related trade organizations

Give one free 1-3 hour seminar at a nearby university, then at 2 large companies

Offer to write 1-2 articles for trade magazines

Join ProfNet to be a quotable expert for articles

Testing the Muse

Step 3: Microtest your products

Best the competition

Use search term suggestion tools to find related/derivative terms for respective products

Figure out how to differentiate

Use more credibility indicators?

Create a better guarantee?

Offer better selection?

Free or faster shipping?

Create a one-page advertisement emphasizing differentiators and product benefits

Test the advertisement

Test eBay auction

Dry test with one-page site advertisement

Use real websie to offer free downloadable material

Drive traffic with Google PPC and track results

Invest or divest

Rollout and automation

MBA - Management By Absense

Remove the human element

Place yourself out of the information flow

Contract outsourcing companies that specialize in one function instead of freelancers

Ensure that all outsourcers are willing to communicate among themselves to solve problems

Replace yourself with scalable infrastructure

Phase I: Do it all yourself

Phase II: Add extensive FAQ and use local fulfillment company

Phase III: Use bigger, more sophisicated outsourcers such as end-to-end fulfillment houses

Fewer options=more revenue

Offer one or two purchase options

Do not offer multiple shipping options

Do not offer overnight or expedited shipping

Eliminate phone orders completely and direct all prospects to online ordering

Do not offer international shipments

Not all customers are created equal

Do not accept money orders or checks

Raise wholesale minimums and require tax ID number to qualify resellers

Refer all potential resellers to an online order form that must be printed and faxed in

Offer low-priced products instead of free products

Offer a lose-win guarantee instead of free trials

Do not accept orders from common fraud countries

Look like a bigger company

Give yourself mid-level title instead of Founder/CEO

Put multiple email and phone contacts on website for different departments

Set up interactive voice response (IVR) remote receptionist

Do not provide home addresses

Definition

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Cautions and Comparisons

The Deferrers (D)

Work for yourself

Work when you want

Retire young

Buy everything you want

Be the boss

Make a ton of money

Have more

Reach a big payoff

Freedom to avoid what you dislike

The New Rich (NR)

Have others work for you

Prevent work for work's sake (W4W)

Do all you want to do, be all you want to be

Neither boss nor employee, but owner

Have reasons for making money

More quality and less clutter

Payday every day

Cashflow first

Freedom to pursue your dreams

The Freedom Multiplier

Money is multiplied in practical value depending on the number of W's you control in your life.

what you do

when you do it

where you do it

whom you do it with

Everything Popular is Wrong

Don't play the game, beat the game

Find loopholes in the rules

Retirement is worst-case-scenario insurance

Interest and energy are cyclical

Less is not laziness

The timing is never right

Ask for forgiveness, not permission

Emphasize strengths, don't fix weaknesses

Things in excess become their opposite

Money alone is not the solution

Relative income is more important than absolute income

Distress is bad, eustress is good

Fear-Setting and Escaping Paralysis

Conquering fear = defining fear

Optimistic denial

Being Unreasonable and Unambiguous

Doing the unrealistic is easier than doing the realistic

People overestimate the competition and underestimate themselves

There is less competition for bigger goals

What do you want?

The opposite of happiness is boredom

Excitement is a better synonymn for happiness

ADD: Adventure Deficit Disorder

Dreamlining

Defined steps instead of ambiguous wants

Goals must be unrealisitic to be effective

Activities that will fill the vacuum when work is removed

Liberation

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Disappearing Act

Ask yourself "why not?"

Being bound to one place will be the new defining feature of the middle class

The New Rick are defined by unrestricted mobility

Work wherever and whenever you want, but get your work done

Step 1:Increase investment

Step 2: Prove increase output offsite

Step 3: Prepare the quantifiable business benefit

Step 4: Propose a revocable trial period

Step 5: Expand remote time

Killing Your Job

Principal phobias

Quitting is permanent

I won't be able to pay the bills

Health insurance and retirement accounts disappear

It will ruin my resume

Mini-Retirements

Mexican fisherman story: living a full and busy life

Extended world travel is not just for the ultrarich

3 month mini-retirement is the alternative to binge traveling

Not an escape from life but a reexamination of it

Aim to experience the world at a speed that lets it change us

Not a one time event--take several per year

Learn to slow down

Get lost intentionally

Observe how you judge both youself and those around you

Financial realities

Take advantage of currency differences

Long term stay often costs the same as hotels

Overcoming excuses not to travel

Don't assume that places abroad are more dangerous than your hometown

Take a trial run for a few weeks

Arrange a week of language classes upon arrival

Cut the clutter

Clutter creates indecision and distraction

Sell, donate, store

What 20% of belongings are used 80% of time?

Filling the Void

Postpartum depression

Go nuts and live your dreams

Social isolation

If you find a focus, an ambitious goal that seems impossible and forces you to grow, these doubts disappear.

Most big questions are a complete waste of time

If you can't define it or act on it, forget it

Life exists to be enjoyed and the most important thing is to feel good about yourself

Continual learning

To live is to learn

Languages

Adults can learn languages much faster than children

It is possible to become conversationally fluent in any language in six months or less

Sports, hiking, chess, or any activity that is domestic to the country

Service

Doing something that improves life besides your own

Service is an attitude, not limited to saving lives and the environment

Improve the quality of life in the world