“How to be a capitalist without Money” by Nathan Latka, turbomind Book Summary by Miguel De La Fuente
You can visit Nathan here: https://book.nathanlatka.com/
His podcast: https://nathanlatka.com/podcast-thetop/
Or his Instagram: https://www.instagram.com/nathanlatka/
Hi, this week we have the book “How to be a Capitalist without Capital” by Nathan Latka. Great book with awesome ideas. Another great business book that i like is the one by Investor John Doerr, “Measure what Matters“, you can read it here, https://www.turbomind.com/measure-what-matters-by-john-doerr-turbomind-book-club/
Basically the book is about how to live the life you want to live. Little things to make it extraordinary.
How to build a business that runs itself, with no start-up capital and how to work up enough momentum to consistently build and sell it every two years.
Nathan created his podcast “The Top Entrepreneurs” and has interviewed over 500 extraordinary thinkers, disrupters, CEOs and extraordinary achievers to find out what makes them different.
This book is about people who are wealthy by their own efforts, not inherited or anything like that, the “new rich” as they call them, have figure it out how to maximize everything in their lives, from their time, money and energy.
There are goldmines like Instagram and Airbnb that didn’t exist in the 2000.
These super rich make use of these new tools available and figure out how to use them in their favor so they can profit from them.
You know how there are some people you can’t figure it out? They travel the world, have fun, seems like really enjoy their lives, what is their secret, if there is one.
It’s easy to dismiss the super-rich as lucky, or being at the right place at the right time, but there is more than just that.
These are some of the most important points I learnt together with my own take on the subject.
You can reach Nathan at http://book.nathanlatka.com/
These are the 4-Rules You Must Break:
- Don’t focus on one thing.
- Copy your competitors.
- Quit setting goals
- Sell Pickaxes to Gold Miners.
- DON’T FOCUS ON ONE THING: MULTIPLY AND COMBINE SEVERAL PROJECTS
Nathan says focusing on one thing gives you a single point of failure.
For example, his podcast revenue comes from his sponsors, but has learn of to multiply his income from that podcast.
The Top Inbox is a Gmail tool that lets you schedule emails to be sent later, set inbox reminders and schedule
auto follow ups. He discovered he could put a pop up on the software interface and use it to drive traffic to his podcast. Nathan bought this software and then he realized he could have optimized really well with this podcast.
He made the users feel like they won a prize-a free trial of the sponsor’s products.
(this is an awesome idea, one we will be implementing in the
TotalSuccess App when we start the TotalSuccess Show, on the apps´ home page we will create a special trial of the sponsor’s product or service, or even a free trial of the expert being interviewed)
Nathan stays that his podcast sponsors pay each between 150 to $180k a year and the Top Inbox drives a lot of that success. So, these two projects combine with each other in an exceptional fashion.
(the key here is to find project that combine with each other, as an ideal complement of each other as in Nathans case of his podcast together with his software extension for Gmail. You can find many products that can combine or have an immediate product to be sold together)
THE THREE FOCUS RULE:Pursue 3-new opportunities at the same time. Once your business in up and running the goal is to put it on autopilot so it runs itself and it takes only a couple of hours of work per week.
(this idea sounds great, but it’s not easy to put it on autopilot and invest only 3 hours per week. I can do it in my real estate rentals, but a running business requires constant tune up, improvement because if you don’t invest the time to improve your business, probably you won’t have a business for long time.
Things change too fast these days. Even a successful podcast, if you are not reinventing it and expand it, it will run out. Have to keep promoting.
So even if the business runs on 3 hours per week, most likely you are doing other complementary activities to maintain it and grow it.
For example, Nathan does a lot of interviews, meaning they interview him. In this interviews he promotes this book, as well as his other businesses and podcast.
Can he be able to keep growing without investing this time? So, even if it’s not directly investing time in his podcast, there are many complementary activities he will need to do. A business on total autopilot, in my opinion, is unlikely to happen in this era. Possible but unlikely)
The most important thing is to learn to maximize your time, effort and output. If you don’t, it will be very hard to go to the next level (completely agree, if you keep doing everything yourself, it will be very hard to leverage your time and effort)
A critical strategy is about batching time.
You don’t have time to work on 3-huhe time consuming projects at one time. So focus 80% your time on one project, with the biggest potential, and 20% on the other two.
For example, you re opening a hostel. And then you launch a book after the hostel is running smoothly, the book can be placed in every bed in the hostel, so the hostel becomes the distribution channel.
(funny Nathan mentions this, I am in the process right now to open a wellness hostel and a book and course that will be with it, excellent idea)
- COPY YOUR COMPETITORS or their successful strategies.
Copy your competitors. Do it fast and aggressively, quickly, and spend the least amount of money possible
(get idea but try not to get sue, and not only copy but make it better)
Most of successful entrepreneurs have copied someone else. If not, you can at least copy their successful strategies. Find a successful pattern and copy it.
Patreon, (www.patreon.com) is a great site where you can see what people are doing and ow much they are earning. It shows the monthly pledges and exactly what they are offering.
- QUIT SETTING GOALS
Nathan says the biggest mistake you can make when you’re trying to build wealth is to set goals you think you can reach or achieve. If the goal is achievable, they are limiting you.
(not necessarily, latest studies in neuroscience show that choosing a goal, objective, or outcome you can reach helps your mind focus, and grow. I prefer to set huge goals that are very hard, or even unlikely I won’t reach them, but, in my opinion, it’s an overstatement and it doesn’t help people.
The biggest companies in the world, from Amazon, to Google, built their successes by placing challenging but achievable goals for the 3-month interval periods. You can read about them in books like “Measure what matters” or “the Amazon way”.
Now, they also have moonshot departments that focus on making the impossible possible, with the goal of creating an exponential improvement, but without hitting achievable goals they wouldn’t be where they are today.
Yes, you need to work the system that produces those goals and results)
So, set audacious goals, then forget and focus on the systems to make them a reality. Getting the system running is more important than deciding you want to make $1 million. (I think both are as important; they complement each other)
The New Rich go extensive lengths to define inputs, procedures and outputs and try to improve on them so they can save time). Great concept.
This is the great system Nathan put together to do the Podcast Show:
- Nathan uses acuity to schedule podcast guests in a batch format. He pays Aaron (Piper Creative), his booking team $12 per book guest.
- Nathan records it using Skype using Ecamm.
- He puts Ecamm files into Audacity, then exports audios files to Google Drive, where Sam takes over.
- Sam finalizes each audio file by editing the intro and other things like sponsors. He uploads at Google drive, YouTube, Libsyn. Nathan pays $7 per episode.
- The release schedule is managed in a huge Google spreadsheet. When the episode goes live on Libsysn, he pays a virtual assistant to publish the guest´s bio, headshot and soundcloud embed on his blog. This extra step is about $5 each.
- The same virtual assistant posts the episode on Linkedln and emails the guest that the interview went live. This costs another $5 per episode.
He does an exceptional job optimizing other´s people time. Each episode takes about 20 minutes’ time. The cost is around $29.
He went from spending 300 hours per month of his own time to juts $10 hours and paying out $870 for 30 episodes.
It’s important to mention that the system you are spending most of your time and money scaling is correlated to your income or cash flow.
People often get stuck working and improving systems that suck up time, money and don’t bring them cash flow.
So, be very selective where you’re spending your time and your money. Make sure it brings the cash flow and income while you are scaling it.
(this is a great question, what is the highest and best use of my time now? what is the highest and best use of my money now? How can I accelerate 10X my icome and productivity?)
Some Great books about creating systems:
- Thinning in systems by Donella Meadows
- Mastering the Rockefeller habits by Verne Harnish.
- Business Adventures by John Brooks
- The Outsiders, by William N. Thorndike Jr.
- Thing Explainer by Randall Munroe
- McDonalds: Behind the Arches by John F. Love
- The 4-Hour Workweek.
- SELL PICKAXES TO GOLD MINERS
“Trying to come up with a new business idea is stupid if you want to get rich” Nathan says.
VC is the gold mine people want to go after. However, the pickax to the VC industry is data. This is one way they make decisions on investments.
So, Nathan uses the information he gets from interviewing CEOs and makes it into a useable data, and sells it to VC companies (5000-15000 per month) who pay him monthly to have access to this data.
In addition, a brilliant strategy is he limits the amount of companies he will seel this data too. And he has a waiting list. Genius!
Look at these palces to find ideas,
- Sell add-ons for massively popular items.
- Read each morning headlines, looking for trends and opportunities.
- Look at other marketplaces, like salesforce.com
- Leverage online learning platforms like udemy.
- Eavesdrop on the influencers.
- Look at what’s trending on kickstarter and other crowdfunding platforms.
- Look at Pareon.com to see which digital products are selling well and are hot.
DAY TO DAY EXECUTION:
Focus on your day to day and what’s the most important things you need to do in your 3 projects you are focusing now.
If you own a hotel, or hostel, there is a place where you can rent the room per hours, it’s called recharge.co.
This site allows you to rent out hourly blocks of your time when the rooms aren’t being used.
PATREON.COM AUTOMATIC INCOME
Patreon is a great site where you can develop automatic income by producing digital content. This is a great way to receive income from your content.
Here fans make monthly contributions to your project.
Nathan got 13 patrons provide $593 a month, after 2-months the pledges went to $2300 per month with only 29 patrons. Amazing!
You can see it here, nathanLatka.com/patreon AZXKLÑ´
Patreon incentives backers through a reward system. The key is to create urgency with your rewards.
(I checked this link but I only see 6 people pledging $77 per month, as of August 4, 2019.
EXCELLENT OPPORTUNITIES IN BUYING BUISNESS REALLY CHEAP
Most people think you need to have huge capital to buy a business but there are many you can buy for pennies, like small software companies.
Nathan does a great job showing how he bought 3 small ones for very little money or even no money at all. All of them were in the Tech Space.
He buys them with no money and no lawyer, great way.
People are stuck in the idea that you have to have money to make money.
When you buy one you will need some capital to improve it, like $65 per hour for a developer. You can find them in freelancer.com or toptal.com.
The challenge is most people lack the discipline to have $500 in savings.
The great news is you can buy a company with $500.
(Remember, you are always making choices with your life. Where you live, what you eat, what positioned your body is in right now. You are making 1000s of decisions every day.)
MAKE IT SIMPLE
Make it simply, buy things that are easy to understand, and to improve. Buy businesses that have a natural unfair advantage.
-Digital over brick and mortar
-Already establish user base. Don’t start from scratch.
-Have a monopoly over a distribution channel. Places like Google Play, Apple App Store, Chrome web store, Salesforce AppExchange.
FREE APPS AND WEB EXTENSIONS ARE GREAT PLACES FOR BEGINNERS.
Very often the owners of these companies that built the software as a side business and are not receiving any money. Their asset is not their main business.
So, here Nathan recommendations,
- Buy free digital properties with a big user base.
- Hire a developer to put up a paywall that appears after someone uses the product X number of times.
- Reinvent the revenue back into the company.
Peter Thiel in his book Zero to One talks about how important is to launch a company that HAS A MONOPOLY. A company so good at what it does that no other can compete with it, like Google.
in order to read the whole essay about the book download my TotalSuccess App, at
TOTALSUCCESS Coaching Club,
by Miguel De La Fuente,
Life and Business Coach.
I love helping people become Exceptional.