the-4-hour-workweek

Income Autopilot

Not for people who want to run businesses, but for those who want to own businesses and spend no time on them.

“Set it, and forget it!” — Ron Popeil, founder of RONCO
If you own a service business, this section will help you convert expertise into a downloadable or shippable good (product) to escape the limits of a per-hour-based model.
If starting from scratch, ignore service businesses for now, as constant customer contact makes absence difficult. Products require much less maintenance and will get you to your TMI faster.
The “Muse” Business Model
- Muses will provide the time and financial freedom to realize your dreamlines in record time, after which one can (and often does) start additional companies to change the world or sell.
- Our goal is simple: To create an automated vehicle for generating cash flow with low maintenance time. That’s it.
  
  “The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.” — Warren G. Bennis, University of Southern California Professor of Business Administration
  - Can a business be used to change the world, like The Body Shop or Patagonia? Yes, but that isn’t our goal here.
  - Can a business be used to cash out through an IPO or sale? Yes, but that isn’t our goal either.
- With these two currencies, all other things are possible. Without them, nothing is possible.
  1. Cash Flow
  2. Time
- Remove yourself from from the equation:
  - MBA = Management By Absence
  - The Remote-Control CEO
Steps
1. Pick an Affordably Reachable Niche Market
  - Creating demand is hard. Filling demand is much easier. Don’t create a product, then seek someone to sell it to. Find a market—define your customers—then find or develop a product for them.
  - It is said that if everyone is your customer, then no one is your customer.
2. Brainstorm (Do Not Invest In) Products
  - ⭐️ Criteria
    1. The Main Benefit Should Be Encapsulated in One Sentence.
    2. It Should Cost the Customer $50–$ 200.
      - There are three main benefits to creating a premium, high-end image and charging more than the competition:
        
        Higher pricing means that we can sell fewer units—and thus manage fewer customers—and fulfill our dreamlines. It’s faster.
        
        Higher pricing attracts lower-maintenance customers (better credit, fewer complaints/questions, fewer returns, etc.). It’s less headache. This is HUGE.
        
        Higher pricing also creates higher profit margins. It’s safer.
      - I personally aim for an 8–10x markup, which means a $100 product can’t cost me more than$ 10–$12.50.
    3. It Should Take No More Than 3 to 4 Weeks to Manufacture.
    4. It Should Be Fully Explainable in a Good Online FAQ.
  - Understanding these criteria, a question remains: How does one obtain a good muse product that satisfies them?
    - Option 1: Resell a Product
    - Option 2: License a Product
    - Option 3: Create a Product
3. Micro-Test Your Products
  - Micro-testing involves using inexpensive advertisements to test consumer response to a product prior to manufacturing / before purchasing inventory.
  - To get an accurate indicator of commercial viability, don’t ask people if they would buy—ask them to buy.