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The Four Hour Body and You Like many of your Tim Ferriss fans out there, I've been very keen to try the Four Hour Body lifestyle change. I'm overweight by quite a few pounds, so I made a New Year's resolution to shed some pounds....

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Improvements and Fixes to WP E-CommerceImprovements and Fixes to WP E-Commerce Like many of you, I am a user of the WP E-Commerce plug-in for Wordpress as well as a Gold Cart upgrade customer. While WP E-Commerce has many excellent features and does wonders for the Wordpress-based...

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Credit cards: a lifeline for cash Hi all. It certainly has been a while since I've last posted. That's because in many ways the 4HWW concept has been shot given the urgency of making ends meet and scrambling to get whatever dollars are...

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Version 0.2 of Show User Level Content Plugin Now Available Making an update to the Show User Level Content Plugin ... finally on version 0.2 This version should allow multiple hide statements in the same post. This is a test of that functionality. The first...

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More on Banking... A while back I posted about business banking accounts, and asked the community what their thoughts were on the best ones for FHWW'ers. I never really did get a good response, but the post is out there,...

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Running a company like a campaign…

Category : business

Putting the issues of politics and the negative tone of campaign ads aside, political campaigns are amazing businesses. Think about it: in a short amount of time, a large group of people come together, generate significant volumes of money, spend significant volumes of money, create nationwide organizations that involve hundreds, if not thousands, of people, achieve their stated purpose, and then disband never to be reformed again.

What’s even more amazing is that such a short-term business can generate such huge amounts of capital (some campaigns generated over $6M or $7M in just 24 hours). Of course, the reasons why people contribute to campaigns differs considerably from the reasons why people buy products, but the magic of large numbers works equally well.

In an earlier post, I analyzed what it would take to generate $5M a year. You would need to sell 100,000 $50 products in a year or 50,000 $100 products in a year, for example. But these campaigns can generate $5m in a day by leveraging the same power of large numbers: 100,000 contributions of $50. Not bad for a day’s work.

What I’m most interested in is the mechanics of how political campaigns work. For example, are they considered to be non-profits? Do they incorporate in one state (as an LLC or C-Corp or S-Corp) and then register in all other states? Do they have to pay employment taxes, worker’s comp, and unemployment benefits for their campaign staff? Do they have to pax taxes on the campaign income? I wish I had answers to those questions, but that digresses a bit from the point of this post…

The point is that for a Four-hour-a-weeker, we are building an business that can sustain significant revenue without requiring a lot of time. One would think that would be in opposition to a political campaign which works 24-hour straight days for multiple months. But in actuality, my observation is that the person at the top of the campaign — the candidate himself — does not really spend that much time with the business of the campaign itself. In many ways, they are the product. The politician is the item that people are paying their hard-earned money for (the donation). But at the same time, the candidate is the reason for the campaign’s existence. At any time, the candidate can pull out of the race and poof the campaign ceases to exist.

The question is: can we run an organization that’s meant to exist for a short amount of time, generate a significant amount of revenue, and involve hundreds or thousands of people in an outsourced capacity reducing the involvement of the company founder to simply being the figurehead of the organization? I think so. I think it depends on the sort of company being built, but I don’t see that the concept of the political campaign as a business in opposition to the ideas of the 4HWW-style business I’ve been discussing here.

It’s hard to say if I have any specific conclusions about this in relevance to my own business or to yours, but it sparked this thought that I wanted to communicate in my blog. What are your thoughts with regards to campaigns as businesses? How do you think they relate to the business ideas put forth in the Four-Hour Work Week book?

Found a great bank for Small Biz… Provident Bank

Category : Getting Started, revenue

I posted the other day on the topic of finding a good bank for small businesses. I got a few great recommendations and ended up settling with Provident Bank, a regional bank in the Virginia, DC, Maryland, and Pennsylvania region. They offer free business checking accounts with no minimum balance requirement, the offer bill payment, merchant services, and even do the Remote Deposit option that I was so enamored with. And, as a bonus (until February 14, 2008), they will even give you $122 for opening an account with them. Whammo! Can’t lose on this one. Opened it up today with a $50 deposit, configured my Amazon.com, Google Adsense, and Cafepress revenue sources to point to this new bank, and away I go! I already made a few bucks on this deal.

I’ll let you know how it all turns out, but you can’t beat that for a muse bank account.

Outsourcing Collections and Accounts Receivable?

Category : outsourcing

One of the main themes espoused in the The 4-Hour Workweek is the idea that you should outsource all tasks that you can and automate all the rest, leaving your time mostly focused on strategy, business-growth, and handling escalated tasks that exceed the capabilities of the outsourcers. All this sounds great, and Tim Ferriss makes lots of recommendations in his book on outsourcing a wide range of activities. However, one of the things he doesn’t mention much about is the activity of collecting money from customers.

If you’re doing things right with a muse (or even bigger) business, collections should not even be an issue. You’re probably already charging upfront for your products,using credit cards, or check prior to receipt of goods, and so you shouldn’t even have an accounts receivable problem. This is another argument behind the point that the 4HWW ideas and lifestyle is primarily suited to product-based businesses that sell products up to $500 (items that can easily be charged to a credit card). I presented other arguments to back up the point that the 4HWW lifestyle and outsourcing concepts are not really appropriate for service-based businesses at all, or product-based businesses that have long sales cycles, expensive price-points, in-person delivery or sales, or proposal generation. Basically, the 4HWW ideas are really meant for payment-upfront, product-based businesses that require no in-person sales, delivery, or proposal generation and where the decision-making cycle is very short. This really leaves a lot of businesses outside of the 4HWW ideal.

For those in the services industries or in businesses where it is impossible to receive full payment for goods prior to delivery, then the ugly problem of collecting accounts receivables rears its ugly head. Collections takes time. Generating invoices. Collecting checks. Following up with delinquent accounts. Finance charges / service fees. Working with large company’s accounts payable systems and procurement people. None of this is fun nor conducive to the 4HWW goals. If you can’t change your business to bring it in line with the sweet spot defined above, then what can you do? Outsource the whole collections and accounts receivable mess.

I have not yet done any research in this area, but I can imagine that there must be a place where you can send your monthly or weekly or even daily accounts receivables to some outsourced firm who goes through all the trouble of making sure the payments are received. I would imagine they’d take a percentage cut of the collections to do so, however, but save you the headache of managing such a time-suck of an activity. For large-ticket items ($50k an above maybe), this might be a good idea. But for those in the not-so-sweet spot of 4HWW (products over $5,000), but not quite $50k, this might prove to be problematic.

Does anyone have any experience with this type of accounts receivables outsourcing and have any advice? Do you think I have it wrong with regards to the 4HWW sweet spot and characterization of the 4HWW ideals as primarily focused on cash-upfront (point-of-sale) products that are bought (not sold!) between $50 and $500?

What’s the best Small Business Bank Account?

Category : business, Getting Started, revenue

As like all you 4HWW-ers, I’m gearing up my muse and getting the funds rolling in. I started an LLC using the Company Corporation (my recommendation if you’re trying to keep it simple and cheap – no need for expensive lawyers), making it a Delaware-registered LLC and then possibly registering as a Foreign LLC in my state, if need be. I then went to the IRS website and got an employer Tax ID #, which only took 5 minutes, tops. Armed with both of these, I’m ready to

Now I need a place to put the incoming funds. As you all know, you need to use a business bank account for your revenue — no mixing personal and business revenue streams. I’ve recently been banking with Bank of America, but not out of pleasure — just convenience. Since my new muse doesn’t require me to be physically close to my bank account (almost all incoming funds are electronically deposited), I am open to better options. BofA fees you to death. And their service is sorely lacking. If it weren’t for their omni-present branches and ATMs, I wouldn’t have even bothered. But then again, I didn’t bother in the first place — they just kept buying all the banks I actually did do business with!

So, let’s leverage the power of the Internet and networking– have any of you had good experiences with a bank that caters well to the Small Business? One that is low in fees, high in service, makes it easy to do the odd in-person deposit (or allows you to do e-deposits like K-Bank does), has low or no balance minimums, allows you do to things like ACH Debits and Credits as well as online banking and has a decent online web experience? Would love your thoughts and help!

Updated: I just checked out the First National Bank of Nevada… While it’s no where near where I live, I’m intrigued by: * free business checking and *e-deposits that allow you to deposit physical checks without ever having to leave the office. A 4HWW-ers dream? I’m not sure if they’ll do business with me in my state, but I’m wondering if there’s anything similar somewhere else or if anyone has experience with something like that?

The Meal Planner… 4HWW Style

Category : dieting

One of the hottest posts on the 4HWW Blog is the topic of how Tim Ferris lost 20 pounds of fat in 30 days… without exercising. His basic method: eat 4 times a day, repeat the meals frequently, focus on low glycemic-index foods, cut out the “white carbs / starches”, take one day a week off, and focus on protein and veggies. Ok, nothing new here. Nothing revolutionary. But just like everything else in 4HWW, the idea is to focus, focus, focus on efficiency and just making it work. Cut out all else, and work to the bare essentials.

Coincidentally, another 4HWW blogger, my friend Brick at the 4-Hour Workweek Journal posted recently a Menu Planner that has helped him become more efficient with regards to meal preparation. He posted a nice spreadsheet to help with meal planning, and I found it to be an excellent tool. However, once I started focusing on the 4HWW diet, I realized that the meal planner as provided was still focused around the staid three-meals a day concept. So, I’ve tweaked the meal planner in a way to make it more 4HWW friendly.

Below, you can see the 4HWW-based Weekly Meal planner in action:

It’s just a simple planner focused around pre-planning your 4HWW-based 4-meal day (do you see a theme here?). Plan out your whole month and then you’ll be able to efficiently shop, cook, or outsource your meals without having to wander through the day eating, wasting time, and gaining weight (if that’s your problem). I’ll continue with this and check in periodically to let you know how it’s going.

You can also download the spreadsheet below if you want to use it. If you improve it, let me know and I’ll post a link to your post, or upload the file here for everyone else to share.

4HWW Menu Planner