The world of the 'New Rich'

Apologies first of all to anyone reading this who is stuck inside with the madness of this ongoing pandemic. I hope you and your loved ones are staying safe and well and my prayers to you. The reason I start with, this is that there really isn't any other way to enjoy Tim Ferris' seminal book, 'The 4 Hour Work Week', without lying on your favourite secluded beach during business hours. Any other place, I feel, you just can't get in the groove to really appreciate this amazing book.

At least that's where I found myself about a fortnight back. Lying on a beach with my wife, a walk away from our holiday beach home, actively running a business a few hours a day and really enjoying the rest of the day on my holiday. Quite simply, it gets you into the right space of mind to imagine the life of the 'New Rich'.

Disclaimers. Am I already in the 'New Rich'? No, that was a great holiday but that is still a few years away. Do I support Tim Ferris' business model? No. Studying it, I am certain it works, but it lacks the human touch and doesn't empower others. It is a personal preference, but why do something that doesn't empower others?

So why am I talking about this? I have had the privilege of talking with many young folks about starting their own business and learning the mindset they need to be able to do this and there seem to be quite a fair bit of preconceptions that they have formed from their studies, peers, parents etc. that the book rightfully challenges.

Having had these preconceptions before, I thought it might help people better understand where to shift their focus to really help them in their business building journey.

1. Focus on designing your lifestyle - We are all focused on the titles, money, recognition etc. That is ingrained from our childhood. The question to ask is 'Why?'. Why are you seeking money, what type of life do you want to live. Money itself is arbitrary, it's what you do with the money that truly matters, are you enjoying it with adventures or are you living stressed?
2. Focus on cash flow rather than asset valuation - This is linked back to the 1st point, are you building the business to fund your lifestyle or to get that 'pot of gold' (the buyout)? If the latter, you will need to be prepared to build another, and another as no pot of gold lasts. If your goal is to have a great lifestyle, then you need to build with the aim of creating cash flow.
3. Focus on owning rather than running / managing - This is the big one for young folks. Even folks coming out of business school, there seems to be this obsession of being 'THE BOSS'. Then the question is, how will you live the lifestyle you want if you are working 15 - 16 hour days to keep the business running? Build with the plan that you will have systems or people that will eventually make you redundant so your cash flow is intact but you have your time back.
4. Focus on leverage - This is another big one for young folks. Everyone seems to be obsessed with the 'FOUNDER' of a brand new idea or bootstrapped from nothing. Why??!! If there are systems, platforms, or partners in place, why not uses them to your advantage. Do you really want to go through the stress of building it all yourself or would you rather enjoy the rewards it brings? If you are still thinking the former, reflect and ask yourself - Is it your dream speaking or your ego?

This is an absolutely fantastic book and worth a read for the mindset alone that is shared. Once again, not an advocate of Tim Ferris' business plan, but it certainly works. It lacks a lot of the human element that there are other business models that work much better but the mindset alone is worth the read.

Hope you do get a chance to read it on a secluded beach to get the full experience!