The 4-Hour Workweek: Escape 9–5, Live Anywhere, and Join the New Rich - Expanded and Updated

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The 4-Hour Workweek: Escape 9–5, Live Anywhere, and Join the New Rich - Expanded and Updated Page 13

by Timothy Ferriss


  Even if the cost is occasionally more per hour than you currently earn, the trade is often worth it. Let’s assume you make $50,000 and thus $25 per hour (working from 9–5, Monday through Friday, for 50 weeks per year). If you pay a top-notch assistant $30 per hour and he or she saves you one full 8-hour shift per week, your cost (subtracting what you’re being paid) is $40 to free an extra day. Would you pay $40 per week to work Monday to Thursday? I would, and I do. Keep in mind that this is a worst-case cost scenario.

  But what if your boss freaks out?

  It’s largely a non-issue, and prevention is better than cure. There is no ethical or legal reason for the boss to know if you choose non-sensitive tasks. The first option is to assign personal items. Time is time, and if you’re spending time on chores and errands that could be spent better elsewhere, a VA will improve life and the management learning curve is similar. Second, you can delegate business tasks that don’t include financial information or identify your company.

  Ready to build an army of assistants? Let’s first look at the dark side of delegation. A review is in order to prevent abuses of power and wasteful behavior.

  Delegation Dangers: Before Getting Started

  The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.

  —BILL GATES

  Have you ever been given illogical assignments, handed unimportant work, or commanded to do something in the most inefficient fashion possible? Not fun and not productive.

  Now it’s your turn to show that you know better. Delegation is to be used as a further step in reduction, not as an excuse to create more movement and add the unimportant. Remember—unless something is well-defined and important, no one should do it.

  Eliminate before you delegate.

  Never automate something that can be eliminated, and never delegate something that can be automated or streamlined. Otherwise, you waste someone else’s time instead of your own, which now wastes your hard-earned cash. How’s that for incentive to be effective and efficient? Now you’re playing with your own dough. It’s something I want you to get comfortable with, and this baby step is small stakes.

  Did I mention to eliminate before you delegate?

  For example, it is popular among executives to have assistants read e-mail. In some cases this is valuable. In my case, I use spam filters, autoresponders with FAQs, and automatic forwarding to outsourcers to limit my e-mail obligation to 10–20 e-mail responses per week. It takes me 30 minutes per week because I used systems—elimination and automation—to make it so.

  Nor do I use an assistant to set meetings and conference calls because I have eliminated meetings. If I need to set the odd 20-minute call for a given month, I’ll send one two-sentence e-mail and be done with it.

  Principle number one is to refine rules and processes before adding people. Using people to leverage a refined process multiplies production; using people as a solution to a poor process multiplies problems.

  The Menu: A World of Possibilities

  I am not interested in picking up crumbs of compassion thrown from the table of someone who considers himself my master. I want the full menu of rights.

  —BISHOP DESMOND TUTU, South African cleric and activist

  The next question then becomes, “What should you delegate?” It’s a good question, but I don’t want to answer it. I want to watch Family Guy.

  The truth be told, it is a hell of a lot of work writing about not working. Ritika of Brickwork and Venky of YMII are more than capable of writing this section, so I’ll just mention two guidelines and leave the mental hernia of detail work to them.

  Golden Rule #1: Each delegated task must be both time-consuming and well-defined. If you’re running around like a chicken with its head cut off and assign your VA to do that for you, it doesn’t improve the order of the universe.

  Golden Rule #2: On a lighter note, have some fun with it. Have someone in Bangalore or Shanghai send e-mails to friends as your personal concierge to set lunch dates or similar basics. Harass your boss with odd phone calls in strong accents from unknown numbers. Being effective doesn’t mean being serious all the time. It’s fun being in control for a change. Get a bit of repression off your chest so it doesn’t turn into a complex later.

  Getting Personal and Going Howard Hughes

  Howard Hughes, the ultrarich filmmaker and eccentric from The Aviator, was notorious for assigning odd tasks to his assistants. Here are a few from Donald Bartlett’s Howard Hughes: His Life and Madness you might want to consider.

  1. After his first plane crash, Hughes confided in a friend that he believed his recovery was due to his consumption of orange juice and its healing properties. He believed that exposure to the air diluted the juice’s potency, so he demanded that fresh oranges be sliced and juiced in front of him.

  2. When Hughes was partaking of the nightlife in Las Vegas, his aides were charged with approaching any girls he took a liking to. If a girl was invited to join the Hughes table and agreed, an aide would pull out a waiver and agreement for her to sign.

  3. Hughes had a barber on call 24/7 but had his hair and nails trimmed about once a year.

  4. In his hotel-bound years, Hughes was rumored to have instructed assistants to place a single cheeseburger in a specific tree outside his penthouse room at a 4:00 P.M. each day, whether he was there or not.

  Such a world of possibilities! Just as the Model-T brought transportation to the masses, virtual assistants bring eccentric billionaire behavior within reach of each man, woman, and child. Now, that’s progress.

  Without further ado, let me pass the mic. Note that YMII performs both personal and business tasks, whereas Brickwork focuses solely on business projects. Let’s start with the important but dull stuff and move quickly from the sublime to the ridiculous. To give a true taste of what to expect, I have not corrected non-native-sounding English.

  Venky: Don’t limit yourself. Just ask us if something is possible. We’ve arranged parties, organized caterers, researched summer courses, cleaned up accounting books, created 3D drafts based on blueprints. Just ask us. We could find the closest kid-friendly restaurant to your house for your son’s birthday, finding out costs and organizing the birthday party. This frees up your time to work or hang out with your son.

  What can we not do? We can’t do anything that would require our physical presence. But you would be surprised as to how small a set of tasks that is in this day and age.

  Here are the most common tasks we handle:

  scheduling interviews and meetings web-research following up on appointments, errands, and tasks online purchases creation of legal documents website maintenance (web design, publishing, uploading files) that doesn’t require a professional designer monitoring, editing, and publishing comments for online discussions posting job vacancies on the web document creation proofreading and editing documents for spelling and formatting online research for updating blogs updating the database for Customer Relationship Management Software managing recruitment processes updating invoices and receiving payments voicemail transcription

  Ritika at Brickwork added the following:

  market research financial research business plans industry analysis market assessment reports preparing presentations reports and newsletters legal research analytics website development search engine optimization maintaining and updating databases credit scoring managing procurement processes

  Venky: We have a forgetful client who has us call him all the time with various reminders. One of our clients on a custom plan has us wake him up every morning. We’ve done the legwork and found people who fell out of contact after Katrina. Found jobs for clients! My favorite so far: One of our clients has a pair of trousers that he really likes that aren’t in production anymore. He’s sending them to Bangalore (from London) to have created exact replicas at a
tiny fraction of the price.

  Here are a few other YMII custom requests:

  Reminding an overzealous client to pay his current parking fines, as well as not speed and collect parking fines.

  Apologizing and sending flowers and cards to spouses of clients.

  Charting a diet plan, reminding client on it regularly, ordering groceries based on the specific diet plan.

  Getting a job for a person who lost his job due to outsourcing a year back. We did the job search, did the cover letters, did the resume tuning, and got the client a job in 30 days.

  Fixing a broken windowpane of a house in Geneva, Switzerland.

  Collecting homework information from teacher’s voicemail and e-mailing it to the client (parents of the kid).

  Research on how to tie a shoelace meant for a kid (client’s son).

  Find a parking slot for your car in some other city even before you make the trip.

  Ordered garbage bins for home.

  Get an authenticated weather forecast and weather report for a particular time in a particular place on a particular day, five years ago. This was to be used as supportive evidence for a lawsuit.

  Talking to parents in our client’s stead.

  Here’s another real example of personal outsourcing from reader David Cross, who got a personal chef at home for less than $5 per meal. Just thinking of the possibilities is enough to make you start drooling. He explains:

  I wanted to find someone to prepare food I love. I trained as a chef but I am often so busy and as I am the only one in the house who really cooks, I often don’t have time to prepare the food that makes me feel the healthiest so I wrote the attached ad and dropped it on Craigslist.

  This was a very tight focus—ultraspecific—I had just two applicants in two months—one who was a 2/10 match but the guy we just OK’d was a Hare Krishna follower for many years, lived in India, and his sample menu proved he knew what he’s doing so we just started him.

  The food is absolutely awesome. The hourly rate is *extremely reasonable,* he’s a five-minute detour when either of us are in town to collect food and I now have delicious Indian food for less than $5 a meal and it’s as good as anything I’ve ever eaten anywhere.

  I’m going to progress to other cuisines now… Thai, Italian, Chinese, etc., and it means when I do have time to cook I’ll enjoy doing it that much more as I am not the only one cooking!

  Indian/Asian Vegetarian Cook Needed

  Date: 2007–06–07, 12:25PM PDT

  Hello.

  We are a local, international family who love Indian and Asian vegetarian food. We are looking for a cook experienced in this wonderful cuisine to prepare delicious, fresh, healthy, authentic Indian/Asian vegetarian meals for us.

  If you’ve cooked a curry once or twice or need to follow recipes, this position is probably not for you, but if you know Indian vegetarian cooking in depth and can prepare delicious, healthy, fresh, authentic Indian vegetarian food then we’d like to hear from you. This could be an ideal opportunity if you are Indian, Pakistani, Punjabi, etc., and are looking for a great way to apply your experience and love of Indian vegetarian food, cooking and culture. Knowledge of Ayurved and how this relates to food and diet is a plus though not essential.

  Please reply with details of your experience and some dishes you could prepare. If we like what you have to offer, we’ll arrange for you to cook a sample meal or two which we will pay you for and then we’ll see what works out for us all.

  This is a part-time position. You will be self-employed and responsible for your own taxes, etc. We’ll pay you an hourly rate we will agree with you plus grocery bills for the food you prepare. You can prepare food in your own place and we can arrange to collect it from you, possibly for us to freeze for later eating. We will work with you to come up with menus and schedules that work out for you and us.

  Thank you for your interest.

  Basic Choices: New Delhi or New York?

  There are tens of thousands of VAs—how on earth do you find the right one? The resources at the end of this chapter will show you where to look, but it is overwhelming and confusing unless you have a few criteria determined in advance.

  It often helps to begin with the question “Where on Earth?”

  Remote or Local?

  “Made in the USA” doesn’t have the ring it used to. The pros of jumping time zones and visiting third-world currency are twofold: People work while you sleep, and the per-hour expense is less. Time savings and cost savings. Ritika explains the former with an example.

  One can give the remote personal assistant in India their assignment when they are leaving work at the end of the day in New York City, and they will have the presentation ready the next morning. Because of the time difference with India, assistants can work on it while they are asleep and have it back in their morning. When they wake up, they will find the completed summary in their inbox. These assistants can also help them keep pace with what they want to read, for example.

  Indian and Chinese VAs, as well as most from other developing countries, will run $4–15 per hour, the lower end being limited to simple tasks and the higher end including the equivalent of Harvard or Stanford M.B.A.s and Ph.D.s. Need a business plan to raise funding? Brickwork can provide it for between $2,500–5,000 instead of $15,000–20,000. Foreign assistance isn’t just for the small time. I know from firsthand discussions that executives from big five accounting and management consulting firms routinely charge clients six figures for research reports that are then farmed to India for low four figures.

  In the U.S. or Canada, the per-hour range is often $25–100. Seems like an obvious choice, right? Bangalore 100%? It’s not. The important metric is cost per completed task, not cost per hour.

  The biggest challenge with overseas help will be the language barrier, which often quadruples back-and-forth discussion and the ultimate cost. The first time I hired an Indian VA, I made the fundamental mistake of not setting an hour cap for three simple tasks. I checked in later that week and found he had spent 23 hours chasing his tail. He had scheduled one tentative interview for the following week, set at the wrong time! Mind boggling. 23 hours? It ended up costing me, at $10 per hour, $230. The same tasks, assigned later that week to a native English speaker in Canada, were completed in two hours at $25 per hour. $50 for more than four times the results. That said, I later requested another Indian VA from the same firm who was able to duplicate the native speaker results.

  How do you know which to choose? That’s the beautiful part: You don’t. It’s a matter of testing a few assistants to both sharpen your communication skills and determine who is worth hiring and who is worth firing. Being a results-based boss isn’t as simple as it looks.

  There are a number of lessons to be learned here.

  First, per-hour cost is not the ultimate determinant of cost. Look at per-task cost. If you need to spend time restating the task and otherwise managing the VA, determine the time required of you and add this (using your per-hour rate from earlier chapters) to the end sticker price of the task. It can be surprising. As cool as it is to say that you have people working for you in three countries, it’s uncool to spend time babysitting people who are supposed to make your life easier.

  Second, the proof is in the pudding. It is impossible to predict how well you will work with a given VA without a trial. Luckily, there are things you can do to improve your odds, and one of them is using a VA firm instead of a solo operator.

  Solo vs. Support Team

  Let’s suppose you find the perfect VA. He or she is performing all of your noncritical tasks and you’ve decided to take a much-deserved vacation to Thailand. It’s nice to know someone besides you will be manning the wheel and putting out fires for a change. Finally, some relief! Two hours before your flight from Bangkok to Phuket, you receive an e-mail: Your VA is out of commission and will be in the hospital for the next week. Not good. Vacation FUBAR.

  I don’t like being dependent on o
ne person, and I don’t recommend it in the least. In the world of high technology, this type of dependency would be referred to as a “single point of failure”—one fragile item upon which all else depends. In the world of IT,15 the term “redundancy” is used as a selling point for systems that continue to function if there is a malfunction or mechanical failure in any given part. In the context of VAs, redundancy entails having fallback support.

  I recommend that you hire a VA firm or VAs with backup teams instead of sole operators. Examples abound, of course, of people who have had a single assistant for decades without incident, but I suggest that this is the exception rather than the rule. Better safe than sorry. Besides simple disaster avoidance, a group structure provides a pool of talent that allows you to assign multiple tasks without bothering to find a new person with the qualifications. Brickwork and YMII both exemplify this type of structure and provide a single point of contact, a personal account manager, who then farms out your tasks to the most-capable people in the group and across different shifts. Need graphic design? Covered. Need database management? Covered. I don’t like calling and coordinating multiple people. I want one-stop shopping and am willing to pay 10% more to have it. I encourage you to be similarly pound-wise and penny-foolish.

  Team preference doesn’t mean that bigger is better, just that multiple people are better than one person. The best VA I have used to date is an Indian with five backup assistants under him. Three can be more than sufficient, but two is toeing the line.

 

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