Be an Ethical Entrepreneur, Marketer, and Business Builder

How hippies created the New Rich while influencing your ideas of time and money

August 28, 2010 by 3 Comments

If you don’t know who the New Rich are keep reading because we’ll get to that… First, some history on how they were created… The history is important because it will explain a bit about your personal conflicts and struggles in balancing work and a career with your need for excitement and family.

Let’s start 3 generations ago… Think post World War 2 and the 1950’s – commonly known as the baby-boomers. These people viewed jobs, income, being rich and, quite frankly, a whole lot of things differently. Life for the average American was pretty straight-forward:

  1. Go to school
  2. Get a job
  3. Keep job for life
  4. Raise a family
  5. Go to church every Sunday
  6. Teach family athletics, manners, and respect
  7. Take vacation every year
  8. Get the entire family together for major holidays
  9. After 40 years retire with the money you saved, move south, golf and/or fish and spend time with the grand kids
  10. Being rich means having a nicer house, car, and boat than your neighbors.

Life was centered around family and work. Pay was based on a combination of:

  1. Education or Skill
  2. Experience
  3. Number of hours worked

In other words you put in your time in the form of schooling, work-experience, and a long work-week and you were paid well.

Then in the 1960’s and 70’s the hippies came along and decided they didn’t much like their parents out-dated, sheltered, closed-minded and limited view on the world. They questioned and reexamined everything they were taught and decided life was about new experiences more than family or a steady-income. Their lives were a bit different:

  1. They found new experiences in drugs, travel, music, sex, politics and just about anything else.
  2. They stopped going to church or at least as much.
  3. They stopped having large families.
  4. They stopped keeping the same job forever.
  5. “True” hippies tried not to work at all or just enough to fund their next adventure.
  6. Work was no longer a sense of pride but simply a means to an end. A job. Work became a 4-letter word.
  7. Retirement? Don’t you have to have a job to retire from first?
  8. Wealth is about having more experiences and a better understanding of yourself than your neighbors.

Sunset over Jackson Lake in Grand Teton National Park

However, even with their new ideas about the world, pay was still based on the 3 items listed above and all directly related to time input. Obviously not all members of the hippy generation decided to travel down the hippy highway. Quite a few followed in the footsteps of their parents and particularly the “work hard to get ahead” mantra stuck with them. However, they couldn’t fully escape the free-spirited influence of their friends.

Then comes along generations X (1962-81) and more particularly Y (1982-98). We are being raised by parents and in school systems that try to educate us to, “work hard to get ahead” and to “put in your time and it will all pay off.” While at the same time being taught to have balance in our lives. Don’t become a workaholic. Take time to see the world since travel is so cheap these days. And the advice I’ve personally heard about 1,000 times, “take the time to do all of those things while you’re young.” Apparently the solution to the conflicting worldviews of the hippies and the baby-boomers is to be a hippy while you’re young and enjoy all the great new experiences that you can handle and then “settle down” and follow the baby- boomers’ formula for success as an “adult.” If you’re Generation Y you know exactly what I’m talking about… Because you’ve heard it, too. If you’re early in Gen X or a baby-boomer, you’ve probably said it… 🙂

Come again? I’m supposed to see the world and race motorcycles and skip church and experiment in my 20’s so that I can “get it out of my system” and then somehow be content the rest of my life making the proper decisions, raising a family, working a steady job, and limiting travel to occasional vacations?

I promise you, that plan does not work. How do I know this? In August, I’ve failed to publish any new blogs because I took a 17 day, 5561 mile, 10 state, 9 national park motorcycle journey throughout the west. The following story has happened to me in some form dozens of times, but here’s one example of how that desire for freedom, expression and new experiences can never be satisfied once you’ve tasted it.

My bike outside of Death Valley NP. FYI: Don't ever ride thru Death Valley in August!

As I’m walking to my motorcycle from the shower facility in Yellowstone National Park I notice a minivan parked next to me with 2 cute little girls running about, both sliding doors and the rear hatch open, a wife running around doing motherly things, and the husband just standing there waiting for me… He’s literally looking straight at me as I walk toward my bike. My bike is fully stocked with saddle bags, camping gear, and everything you need for an extended vacation and this guy noticed… After some small talk while his wife gathers the necessary tools for their showers I ask him if he rides. He HAD been smiling. His wife immediately stops for the first time and with the-smile-that-says-a-thousand-words looks straight at him. He looks at her and I couldn’t help but remark, “Uh oh, your wife is listening to your response so you better get it right.” She doesn’t flinch or take her eyes off of him. He smiles and says, “Yeah, I ride dirt bikes now.” The Mrs. goes back to her motherly duties satisfied with his answer. I bet you can guess his advice to me… “Do it while you’re young.” That was the second or third time in 2 hours that I’d heard that advice. I’ve lost track of how often people tell me that.

Did you catch how he ended his sentence with, “now”? Yeah, me too. Granted this man had a beautiful wife, 2 super-cute little girls, and enough money to take a week long vacation with the family to one of the most awe-inspiring places on earth. He was living the baby-boomer dream… But if you could have seen his face and the way his eyes were transfixed on my motorcycle it would be immensely obvious that something was missing… He had tasted that freedom and adventure, which for him happened to be on a motorcycle, and he wasn’t fully satisfied with his new stable, predictable life. Would you be??? Or if you’re not there yet, will you be? Can you have both that stability and some freedom? Issues with your better half aside…

Along comes what Timothy Ferriss calls in The 4-Hour Workweek, the New Rich. Thanks primarily to the shrinking of the world due to increases in technology, people have started to realize that you can work from anywhere. For 2 years I worked out of the basement of my home for a software company 620 miles away. While taking pictures in Oceanside, OR last week a nice couple told me they moved there and out of the city because the husband “telecommutes” as a software engineer 700 miles away to San Francisco.

In addition, people have realized when you don’t have to deal with small talk at the water cooler or talk to your co-workers about last night’s episode of Survivor you can get a lot more done a lot more quickly. In other words, when working remotely, you can do so more efficiently. This is what the New Rich are all about. The ability to work from anywhere more efficiently than their co-workers sitting in an office.

There’s more to the story thanks to the hippies, though… As I mentioned earlier, the baby-boomers always thought you traded hours for dollars. More time equals more money. Over time you can save enough money in your nest egg to pay for the time where you won’t be making money in retirement. The New Rich don’t see it that way… As a matter of fact, that’s all wrong. Whereas conventional thought values a person’s wealth based solely on their bank account and possessions, the New Rich consider 2 things:

  1. Cashflow
  2. Timeflow (yeah, I just made that word up)

Cashflow – If you have a steady income, you don’t need a nest egg. In other words, if I have a business that makes me money every month, why do I need a million dollars to retire? Your answer to that should be – “Well you need to work in that business if it’s going to make you money and if you’re working you can’t do the things you want to in retirement.” Good answer. But you’re wrong. It is possible to have cashflow without giving up your life and all of your time. Besides, what good is having all the money in the world if you don’t have the time to enjoy it? Just as importantly, when you’re 68, will you be able to enjoy the same adventures as you can when you’re 28?

Timeflow – I’ll use an example to explain this concept. If you’re a lawyer and you make $208,000 per year and work 80 hours per week, your hourly income is $50/hour. You’re now one of the top income earners in the country and, with a reasonable savings and investment plan, will be rich in short order, right? What if, however, I make $52,000 per year, have no office, can work from a cafe in Jackson Hole, WY or a beach house on the Outer Banks of North Carolina, and only need to work 5 hours per week? Only one hour per day. That translates to $200/hour.  More importantly, I have an extra 75 hours of time that I own, control, and is available to me every week. That control of your time is what I call, timeflow.

Now for the tough part, which is more valuable? Which is more important? This isn’t a trick question. One of them is truly more important and more valuable than the other.

It’s your timeflow for one simple reason: You can lose all of your money and get it back, but once you’ve given up your time, it’s lost forever.

That being the case, when was the last time you went into a performance review and asked for more vacation time instead of a raise? What about when negotiating for your job? Did you offer to give up a week or 2 worth of pay for additional time off? If your time is truly more valuable, what are you doing to improve your timeflow at work or in your business???

If you understand that concept, you understand what it’s like to be the New Rich. To become one of the elite members of the New Rich community you need to work on 3 things:

  1. Cashflow
  2. Timeflow
  3. Mobility

The best way to achieve these 3 things is to own your own business. That business can be a brick-and-mortar, main street style business as Brad Sugars suggests and I have owned. Or it can be an internet business that simply resells products as Timothy Ferriss suggests. Either way, the business has to be absentee-owned so, whether you’re there or not, it’s putting money into your bank account. If the business you’re looking to buy doesn’t allow for absentee ownership, don’t buy it. If the business you own doesn’t provide that option, sell it.

So how did the hippies create a group of people with such financial and business savvy? Well they didn’t do it on their own. The hippies simply taught us the importance of timeflow. They reminded us of the human-spirit’s desire for new experiences and to see new places. The baby-boomers taught us that, to enjoy those things, you still need money. The Generation X and Yers have put those together, wrapped it all up in the latest communications technology, and created this new breed of entrepreneur. Once you’re a member of the New Rich you can decide if you prefer the cars, motorcycles, and boats in the style of the baby-boomers or the travel and experiences in the style of the hippies… That’s the beauty of their lifestyles. They’ve created a way to do what they want to do when they want to do it. You can learn to do the same.

Whether you own a business or have a job, hopefully by understanding how the New Rich are finding balance in their lives amongst all the conflicting information they were taught by their parents and educators, you can better achieve a timeflow and cashflow balance in yours.

To your balanced success, Bryan

P.S. If this makes sense to you and you’re interested in learning how to go about acquiring your own business start with The Fundamentals. If you already own a business, you need to learn how to start improving your timeflow. If you’ve owned that business for any amount of time you may really need to consider moving on and buying one that can truly help you achieve your goals. You may also email me directly for more help.

Filed Under: Business Psychology, General Business Tagged With: , , , , , , ,

Knowing when to “move-on”, drop everything, and do something else

February 21, 2010 by 1 Comment

It is much harder to leave security than it is to take a risk.

In Thomas Stanley’s book, The Millionaire Next Door, he points out that the profile of your average millionaire generally includes getting FIRED from his previous job and starting his own business. That’s right, the ultra-risk-taking macho entrepreneur millionaire you know generally became successful because, quite literally, he had no other option. Of course their are the guys, like me, who seemed to have everything going well but that just wasn’t enough and we had to venture out on our own and forge our own paths in business and in life. But don’t kid yourself, that give-up-something-great-to-get-something-better mentality is the VAST exception.

Keep that in mind the next time you’re reading a book or blog by a successful person who just happens to be in the minority who was just naturally programmed to never accept “good enough”. If that’s not you, you need to learn how to get over your current “security” in order to venture out on a “risk”. (I put both of those in quotes because they’re often not reality, but just figments of our imagination.)

So for the majority of people who have a job, house, family, car payments and a steady income, how do you decide to make the jump and take the risk of leaving your steady paycheck behind and trying something else?

  1. Risk-taking is just a lack of knowledge. – If buying a business, writing a book, starting a band, quitting your job to take a new one or just being the first one at your work to try a ground-breaking new idea seems like a risk to you, then you simply need to study more. You need to make sure you understand how to take that business to a level of profitability before you buy it. You need to know how to effectively market your book or band and develop a following. You need to know that you have options for your livelihood before you tell your boss off and walk away (something I never recommend). And if you’re simply trying to get everyone at work to get out of their rut and change, you better be able to back-up your reason for the change with some hard evidence as you’ll undoubtedly be met with nay-sayers. Whatever it is, you can always trace an increase in risk to a lack of knowledge on the subject matter and vice-versa. Let me make this even more clear. If you consider a “standard” medical operation like removing an appendix as safe, would you consider the same operation under the same conditions safe if it was performed by your plumber? What’s the difference? The risk is mitigated when the procedure is undertaken by a knowledgeable doctor.
  2. Hedge your bet. – One of the cardinal rules of marketing is ONLY the consumer knows if the marketing is effective or not. They vote on their choice for great marketing by spending money. The same is true in almost any venture where you’re going out on your own. You really don’t KNOW that your customers, readers, listeners or coworkers are going to love the idea until it’s out there, right? Well then, in addition to becoming knowledgeable, make sure you have a backup plan… Or 2 or 3. Of course we all know of the stories of people overcoming impossible odds to make their ideas work. Heck, the entire 3m success can be built on the concept of passionate people overcoming all odds to bring their ideas to fruition. Michael Jordan was cut from his high school basketball team as a sophomore. Albert Einstein’s first 2 graduate thesis’ were rejected. A successful business owner friend of mine told me he was turned down by 27 banks before finding one who would loan him money for his first business. My point is not to throw the towel in because of adversity. My point is that consumers are impossible to predict, so if you’re going to bet the farm on an untried idea, you better have a few tried and true ideas in your back pocket to fall back on. Most entrepreneurs you speak with will tell you about their myriad failures that were necessary before becoming successful. They always had another plan and another way to succeed. Even at 3m where a culture of risk-taking and never accepting no is programmed into the culture, everyone knows there’s little risk of losing your job for pursuing that passionate idea. In other words, 3m developed that culture with a built-in hedged bet to encourage innovation.
  3. What is your time worth? – Though this is third item, this one is the most important. Most people grossly over-estimate what they’re capable of in a year but also grossly under-estimate what they’re capable of in 10 years. So what does that mean? We are likely to set goals for the next year that are unreachable but then either not set goals for longer-term or set drastically underestimated goals. If you always spend less than you make, you will never run out of money. But no matter what you do, you will run out of time. So how do you determine if you’re going to stay at your current job, position, or business? If you’re learning on a regular basis from those around you AND your given an opportunity to express your own talents and ideas then stay. The former is more important than the latter, but you should be able to do both. Keep in mind that you should be learning things that you couldn’t otherwise learn on your own. Notice, I did not say that you have fun at work or you have a reasonable wage with lots of perks. Those temporary benefits are important for someone who will live forever and so has plenty of time to find something better later on. However, if you’re not immortal, and you’re not learning at work on a regular basis, it’s time to move on. The reason for this is because with the knowledge you can be learning at an underpaying job, you can leverage that at your next job, business, or passion. That’s why people underestimate what they’re capable of in 10 years. It’s sometimes challenging for us to step outside of our situation today, whether good or bad, and view it as a step forward or backward in our 10 year goals because we’re just trying to make it day-to-day.

If after evaluating your situation, you’ve now determined that it’s most likely time to move-on, check out a few of my other blogs that might help you get started:

The most important life lesson, and the key to success…

Why not?

The first 3 steps to becoming wealthy

To your success, Bryan

P.S. If the concept of setting 10-year, or even 1-year, goals is a bit foreign to you, check out my blog on The 3 steps to become successful at anything…

Filed Under: Business Books, Business Psychology Tagged With: , , , , , ,

The old fashioned way to make $1,000,000 per year…

January 17, 2009 by 9 Comments

Let’s face it, few of us are going to come up with a business model to rival Bill Gates (Microsoft), Mark Zuckerberg (Facebook), Tom Anderson (Myspace), or Larry Page and Sergey Brin (Google). Even fewer of us, given that brilliant idea, have the resources, connections, and outright talent to make our first business a multi-billion dollar enterprise over night. Yes it’s possible. However so is winning the lottery, getting attacked by a shark, and getting struck by lightning. The old fashioned way of creating an income of $1,000,000 per year is a bit different. The most common path requires you to own your own business. So your goal should obviously be to own your own business. That million bucks per year will be nice, however the true blessing of being a business owner is control over your most valuable asset – your time.

Now let’s clarify our goals by answering a few questions:

  1. How much money do you want to make?
  2. How much time do you want to spend working once your business is done?
  3. How much time are you willing to spend building a business?

1. How much money do you want to make? Let’s say you want to make a million dollars per year. That’s over $83,000 per month, $19,230 per week, and $2740 per day. Would that satisfy you? If not, add your number in here. It helps to figure out and visualize EXACTLY how you’re going to spend your $2740 per day. The mind doesn’t know the difference between dreams and reality so start conditioning your mind now for that lifestyle and it’ll be a lot easier to get there.

Now that you have a target, here’s how you’re going to get it. Become a master at business and start searching for great businesses to buy and grow. If you want a million dollars, all you need to do is own a business that does $5 million in sales per year with a net profit of 20%. Twenty percent of $5 million is $1 million. Or find a business that does $10 million in sales with a net profit of 10%. Ten percent of $10 million is again $1 million.  I wouldn’t look for a business that can’t accomplish at least a 10% net profit.

2. How much time do you want to spend working once the business is done? – Some people like to work and there’s nothing wrong with that. I work extremely hard right now, but it’s not because I have an unhealthy infatuation with it. If I had a trust fund I’m sure I’d be investing in businesses but I’d also be traveling, racing, engineering, and spending a lot less time working… Eventually I’d like to work less than 10 hours a week without ever coming into the office. How about you? If you’re going to buy a business and be the service leader, sales leader, and customer service representative then you’re never going to get out from under it. The only things that can truly be done remotely are marketing and communications…  If you’re an owner taking on more then marketing and communication with your leaders then either plan to delegate or find another business. The other option is to sell your business once completed and live off of interest or rental properties…

3. How much time are you willing spend to build a business? Let’s face it, if you want to make a million dollars per year, it will probably take a bit longer than if you’re happy with $100,000. So if you’ve educated yourself, have some money saved up, have some decent connections, and already know how to negotiate, you can probably be making $100,000 per year within 2-3 years. Less if you’re really good. To turn that into a million per year will probably take another 5-7. Michael Masterson even wrote a book called Seven Years to Seven Figures: The Fast-Track Plan to Becoming a Millionaire which is worth a read. Realistically if you can do what you want with $10,000 per month, then why keep on working to make that $80,000 per month? Do you really need that much to enjoy life? If so, go for it.

There’s really only one trick to this… If you HATE business then forget about it. You’ll never be an expert at something you hate and obviously to achieve these goals you have to become an expert. If you only kinda like business then go for it. You’ll be amazed at how much more you’ll enjoy it when you start making regular deposits into your bank account. 🙂  Keep in mind, the business building doesn’t have to be your life – it’s just a means to an end if that’s what you want it to be. Determine what you want right now, though, before you get started!

Now that you have your clearly defined plan, you need to put it into action. Sell your PS3 and X-box, get rid of your television, and get to work. If you aren’t willing to make the sacrifices that provide you with the knowledge you need to make this goal a reality it’ll never happen anyway. The old fashioned way isn’t easy. It’s real work but with a real payoff. In my mind I’d rather work 80 hours per week when I’m in my 20’s so I can have some freedom later in life then work 40 hours per week for the next 40 years and have “nice” stuff all along the way. If you’re not willing to make that sacrifice, then just stop now and enjoy your 40 years in the work force. That doesn’t make you better or worse then me – just different. Granted, in my first 9 months at the businesses I’ve purchased I’ve spent over a month out of the office on trips. Some were business trips and some were vacation. I worked during all of them with the help of some technology, however I also had a lot of freedom to do other things. So, though I work really hard when I’m in town, I haven’t exactly given up my youth for the promise of a bright future. Life’s too short for all that. I have more freedom and time to enjoy life now then I have ever had while working for someone else.

Just today when I was coaching 1st and 2nd graders basketball, Andrew walked up to me and said “Coach, you should get a job like my dad.” “Oh really who does he work for?” “I don’t know but he can work whenever he wants he just has to let his boss know.” “Wow, that’s awesome Andrew, but I don’t have a boss.” His eyes got real big like only a 7 year old’s can – “So you can work whenever you want?” Laughing, I responded simply, “Sure.”  A 7 year old understands the greatest part of being your own boss is your freedom – do you?

To your success, Bryan

Filed Under: Business Books, General Business Tagged With: , , , , , ,