Millionaire Fastlane: Ultra Condensed Cliff Notes #2

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Below are my personal notes of Millionaire Fastlane. These highlights were what I used to write my personal development book, Wiser Next Week, a condensation of many different self improvement books

In a Nutshell: The Millionaire Fastlane draws attentions to what’s wrong with the old get a degree, get a job, work hard, retire rich model, defines wealth in a new way, and shows you viable paths to retiring young.

The moment you stop learning is the moment you stop growing.

Get Rich Quick is preceded by process

The fastlane is a business system, the slowlane is a job

Be a producer first and a consumer second

Consumers seek producers to satiate their fill

To consume richly, produce richly first

Fastlane Equation: Wealth= NP+ Asset Value

NP= Unit sold (scale) * Unit Profit (magnitude)

Asset Value = Net profit * multiple

Upper limit is virtually unlimited with units sold in Fastlane

24 hours is the upper limit in the slowlane

To increase net profit:

Raise units sold by increasing the conversion ratio

Raise units sold

Raise the unit profit

In the fastlane, your Wealth Accelerator is based on building or buying appreciable assets (business, real estate, cashflow), add value and manipulate the variables.

Work unlike anyone else so you can live unlike anyone else. Excitement (wants/desires) and discontent (undesirable situations) allow you to do what others won’t

Creating a product is half the battle, distributing the product is needed to sell to the masses  

Law of Effection: Affect millions, make millions

Scale creates millionares, magnitude creates millionaires

Make a big impact a few times or a a small impact a million times.

Circumstances are symptoms of choices

A bad choice can skew you one degree today, but over years it is magnifide

Your choices will ripple through the years.

To make better choices:

  1. Worst Case Consequence Analysis (WCCA)- Everyday Decisions
    1. Whats the worst case scenario for this choice?
    2. Whats the probability of this outcome
    3. Is the risk acceptable
  2. Weighted Average Decision Matrix (WADM) – Big Decisions
    1. Create a list of considered decisions
    2. Create a list of factors effecting the decision making
    3. Rank the factors in order of importance, the higher the number the more important
    4. Score each decision on the factors, higher the better
    5. Multiply the Decision Score with the Weight of each factor
FactorMove to San FranciscoMove to Los Angeles
Weather8 (score[8] * weight[2])=166(score[6] * weight[2])=12
Distance from Family6 (score[6] * weight [1])=67(score[7] * weight[1])=7

(16+6)=22(12+7)=19

    Decision 1 is chosen 

When anyone asks for your time, they’re asking for a chunk of your life

Value time poorly and you will become poor

Time is the greatest asset you own

You Lifespan consists of =Free time+ Indentured Time

Money shifts indentured time to free time

Ultimately, wealth is having the free time to live how you want to live

What you know today aint enough to get you where you want to be tomorrow

Education is used to facilitate and grow your business system

Acquiring and applying knowledge will bring wealth

You have to be committed and pay the toll

A smart man learns from his mistakes, a wise man learns from the mistakes of others

One hit is all it can take and you can be set for life

Regret of failure is easier then regret of not trying

Intelligent risks: limited downside and infinite upside

There is never a perfect time, start today

Opportunities are unfulfilled needs and luck is opportunity meeting the prepared

5 Fastlane Commandments

  1. Need: 
    1. Businesses that solve needs and provide value win. 
    2. People care about what your business can do for them, surrender your selfishness and address the selfishness of others
    3. Correct business foundations are based on market place needs, not internal selfish intentions
    4. The market place and consumers determine if your business is viable, in a world of selfishness, be unselfish
    5. Help 1 million people:
      1. Feel better
      2. Solve a problem
      3. Educate them
      4. Look better (health, clothing)
      5. Give them security ( housing, safety, health)
      6. Invoke positive emotions ( love, happiness, laughter, self confidence)
      7. Satisfy appetites (food, sex)
      8. Make things easier
  2. Entry: 
    1. As entry barriers to any business road lessen, their effectiveness declines while competition strengthens
    2. Your business shouldn’t be available to everyone, if it is, you must be exceptional. Real startups are processes, not events
  3. Control: 
    1. The Driver of any vehicle will always make more than the hitchhiker
    2. If you blindly invest your life and time into someone else’s creation, you become their soldier
    3. Don’t climb the ladder, build it
  4. Scale
    1. Scale refers to leverage and leverage gives the Fastlane equation its power
    2. Factors of leverage include number of potential customers, pricing flexibility
  5. Time 
    1. Owning a business doesn’t guarantee wealth or a detachment from time
    2. Ask:
      1. Can this business be automated during my absence?
      2. Are my margins thick enought to hire HR?
      3. How can I get this business to operate exclusive of my time?

Aim your business to hit all 5. 

Remember: Do not invest in a needless business. Do not trade time for money. Do not operate on a limited scale. Do not relinquish control. Do not let your business startup be an event over a process. 

Business Innovations:

    Innovation involves 2 acts: Manufacturing and Distribution

  1. Invent a product, the sell it with various marketing techniques
  2. Take something and improve it. Add elements of differentiation
  3. Distribution is where the war is won. A great product is worth nothing if customers don’t receive it
  4. Seek unmet or inadequately met needs and inconveniences. Simplify, fix a pain
  5. If someone else is already doing it, ask if you can do it better
  6. Words that may hid an opportunity:
    1. I hate
    2. I don’t like
    3. Why is this like this
    4. Do I have to
    5. I wish there was
    6. I’m tired of 
    7. This sucks
  7. Execution is more important than the idea as execution takes process, sacrifice, discipline and persistence

Feedback and Improvement

  • Complaints, grievances and issues represent free feedback and expose unmet needs in your business. They hint the direction you should be going
  • Solve complaints that add the most value
  • To create raving customers, you must exceed satisfaction. Raving customers advertise for you for free
  • Spend money pleasing current customers, not finding new ones first
  • Fanatical customer service can overcome shortcomings, but fanatical features can’t overcome poor customer service. 

Building a Brand: Use a Unique Selling Proposition (USP)

  1. Solve a problem or need
  2. Use powerful action verbs that create desire, urgency and scarcity
  3. Be specific on what is offered
  4. Keep it simple
  5. Integrate your USP to all marketing materials
  6. Follow through on the promises of your Unique Selling Propositions

How to Differentiate from the Competition:

  • Polarize: Take an extreme viewpoint that forces people to either love you or hate you. 
  • Be Risque: Be provocative and eye catching, sex sells.
  • Arouse Emotions: People are creatures of emotions, not logical. Appeal to the subconscious, make them care. 
  • Be Interactive: People want their opinions heard
  • Be Unconventional: Grab their attentions, then tailor your message to the benefits offered and answer the questions: “What’s in it for me?”
  • Remember that consumers buy things to solve needs

Finding the Desired Benefits:

  1. Step into the shoes of your customer, define the typical buyer.
  2. What do they want, what do they fear, what do they need solved?
  3. Be specific on how your product solves those problems. These are the benefits.

Focus on one business and excel at it. 

No life ever grows great unless it is focused, dedicated and disciplined.

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