The simple mechanics of capitalism in Mansehra, Pakistan: Local products that people want, marketed efficiently.

The other title I considered for this post was “Acres of Diamonds.” If you haven’t read this classic late 19th century speech by Russell Conwell, you should. The above version is abridged but the unabridged version is very much worth the ten minutes it takes to read.  

Timothy Ferris’ 2007 book The 4 Hour Workweek has spawned dozens of offshoot “New Mobile Lifestyle” web sites. The deliberate creation of a lifestyle that requires little work but produces lots of money is not a new concept yet the book has intensely re-focused interest, particularly within the on-line marketing arena.  

My personal expertise is in the systematic processes necessary to Make More and Work Less, but there is something that must happen before one figuratively sells the farm in anticipation of acquiring the New Mobile Lifestyle. (It’s an important point that I’ll cover in more detail in the September 18th Work the System workshop.)  

There has to be a viable product or service that people will trade for money.  

Let’s be pragmatic about the process of finding freedom and wealth. Here’s the dirt-simple formula. All four steps are mandatory:  

1. Create or otherwise get control of a product or service that has value to others
2. Carefully analyze the inner workings of the product/service, and then figure out a way to outsource the production
3. Make the product/service – and the marketing of it – as efficient as possible
4. Personally become expert at on-going maintenance and off-site management, while constantly searching for new offerings

Here’s where too many born-again New Mobile Lifestyle enthusiasts go wrong: They start with prodigious enthusiasm and then, as if that enthusiasm were plenty enough, fulfill step one with a new product or service that is of marginal quality or is unproven. Not paying close attention to step one in order to hyper-focus on the process steps – steps two through four– guarantees failure.  

But with a shift in big-picture thinking, there’s great news for those of you who are starting without a solid product or service: An existing, conventional, static-location  “boring”  business can be wildly profitable…and if you pick the right endeavor and are smart, you won’t have to be there every minute to manage things. People are pulling this off all the time, all around you!  

Select a proven product or service and then systemize things properly and your chances of breaking free rise geometrically. Don’t assume you must create a new product from the get-go. Real-world innovation usually comes along spontaneously after a long and deep submersion in the particular field. It’s hard to shortcut the reality of that fact. Be patient. 

There is a good chance the greatest opportunity is in your own back yard.  

Especially in this down-economy, there is an array of existing products and services that are under-developed and under-sold: business services of all kinds, restaurants, retail outlets, recreation services, publishing, small products, services that are unique to narrow markets, and on and on. Just look around for an existing business that is struggling due to poor leadership, has a decent product or service and has some cash flow. Be sure it’s a business that will not perennially require your presence and that has recurring revenues and recurring processes. Think systems.   

It especially strikes me how many small businesses are inefficiently managed. Remember that in any 5 year period,  80% of all small businesses go out of business. It is here that opportunity lies. Secure one of these marginal businesses before it fails and then systematically fix the problems. My bet is you can find one close by. 

A struggling business has an anemic bottom line which means it will be available to you for little or no down-payment. 

And what of the success of Tim Ferris? Tim is intensely process-oriented but his foundation lies in three solid products. First, his book. It’s loaded with good advice that is presented in an entertaining, inspired way. Second, he provides an on-going dissemination of useful information through his web presence and in his speaking engagements. Third, Tim has Tim: He’s an intriguing guy; smart, confident, funny and engaging. He’s a product in himself. 

Ferris creates his products in his own back yard. Then he makes them better and better by constantly studying detail and assertively systemizing processes. All the while his eyes are open for something new. Other examples? I haven’t used these new products but it seems to me David Walsh’s M6 system and Robert Granholm’s The Backup Informer product are getting it right.  

And what about you? Do you have a viable product or service? If not, get out of your head and start poking around your neighborhood. There’s opportunity everywhere. 

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Photo by Sam Carpenter, November 2005

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