How to future proof your kids

There’s lots of things we can do to future proof our kids. On the top of my list would be this: Don’t condition them to into thinking they’ll get a job when they grow up.

The reason is simple – A job is only one source of potential revenue to sustain life.

This isn’t to say that jobs are bad, just that while they are young we should be introducing the concept of economics. The first concept is that we need revenue when we grow up, and a job is just one source. Imagine asking your kids this:

What will your major revenue source be when you grow up?

Their first question will be, your guessed it – What in the heck is revenue? And this invites an important conversation that opens their minds for the rest of their life. A decent answer might be this: Well, revenue is a word that describes all of the different ways we can get money for helping people. A job is just one of those ways, but there are many more. And some are more rewarding, some easier, some harder. Here are some examples Johnny and Mary:

  • Profits from selling things, or owning a business
  • Commission which can be from selling something for someone else
  • Fees for doing projects
  • Freelancing selling your skills one task at a time
  • Rents for people using things you own – like a building
  • Dividends which is money when you own a portion of a company, Like the toy shops we go to – Did you know you can own part of that toyshop!?!
  • Royalties from letting someone use your idea, like if you drew the first picture of a cartoon character
  • Licensing which is when people pay you to use something you own in another country

The list is endless, unlike the number of jobs which are about to be replaced by AI, Automation and offshoring.

You could explain all the examples above, using just one of their toys, say Lego. Shops make profit selling it. Professional Lego builders work as freelancers. The shop the Lego is sold in is rented by the person that owns  the building. Lego pay licensing fees to Star Wars to make Darth Vader. Shareholders in the Lego company share in profits from people buying lego. You get the pattern.

This will show them many possibilities. Kids are super curious about the world, and they’ll never see money in the same way again. They’ll start to see economics and different ways they can participate. More importantly though, they’ll be thinking about systems, and how to position themselves into owning the factors of production, and not being them. If we do this, we give them a chance at being the architects of their own future, and not a bricklayer in someone else’s.

Blog readers in Melbourne – I’m inviting you as a reader to The Lessons School Forgot – Live – to celebrate the launch of my new book. 

Hope to see you there, Steve. 

Why it's never been a better time to start a business

Lift off!

It’s ironic that governments around the world are clamouring to support large companies via the promise of jobs given that this is the greatest time in human history to start a business.

Anyone who has a had a crack at starting a venture knows the idea is the easy bit. Ideas are bit like water, absolutely vital, but there is no shortage. The hard part has always been gathering access to resources, and then compiling the resources into a system of revenue. Just think through what we needed in the past to make a business a reality:

Finance – without rich parents, friends or some security for the bank it was over before we started.

Manufacturing – how the heck would you build a facility to make stuff? There was no ‘open factories’ just a little while ago.

Retail – other than opening a store, it was difficult to get on the shelves. Especially in small volumes. Stores wanted mass market products, support by advertising.

Promotion – advertising was barely affordable other than bills posted on local walls. Newspapers, radio and TV – all too expensive for a startup.

It’s no wonder we got told to get a good education, go to university and get a stable job with a multinational corporation. Which, is still an option…. but personally, I think we are all capable of more than that. I think the gift of access we’ve all been given via technology is too precious to waste. Just look at all the barriers to entry which have now crumbled in less than a generation:

Alibaba has more than 4 million factories we can access to get a our dreams made into a physical reality.

E-commerce stores have never been easier to set up, no tech skills required.

We can connect with customers on a zillion platforms – Ebay / Etsy / App store / Facebook / Instagram / Youtube and endless others

We can get funded based on the strength of our work, passion and ideas, not how rich our contacts are.

We can access freelance workers easy on line, work from home or anywhere, and we can start part time, an hour a day instead of wasting the night watching TV shows which teach us how to make a better soufflé .

Why this matters: A.I. is coming and it WILL remove many jobs including white collar work – so we need a rebooted entrepreneurial ethic to invent our own financial futures and create new industries.

If you want more inspiration on your possible future – then check out the first chapter of my upcoming book – The Lessons School Forgot –  you’ll totally dig it.

Why we should worry less about the robots, and more about ourselves

As if concocted by some kind of Industrial Séance, the past 100 years has turned people in the developed world into a cohort of economic outpatients. We’ve abdicated our entire financial responsibility to institutions who must now provide us with a stable job, a career for life, increasing wages, and skills that are relevant in perpetuity without the requirement of an upgrade. A strange desire given that this has never happened before.

A close look at history any time before the 1950’s, and we can see we’ve never had any of those things as a certainty of life, quite the opposite in fact. The level of stability, of economic growth and the increase in living standards we’ve experience in the past 70 years is unparalleled in recorded history. For all we know it could be a fortuitous anomaly, a once off that we’ve been lucky enough to experience first hand. But we’re not thankful, instead those who’ve been the major beneficiaries are demanding in advance that the good life not be taken away. That the life we live is some kind of right, a standard we are now entitled to, without any heavy lifting required on our behalf. While very few indeed are asking the resources needed so they can get to work on personal transformation.

Automation & robots

This kind of upheaval isn’t new either. Every period of humanity which found itself in the middle of a technological shift, had those who were disenfranchised and displaced. Some even had entire their civilizations destroyed based on technological lag. Given our current global and economic interdependence this is an unlikely outcome, but yes, the technological shift is big, the biggest in many generations, and yes, it’s happening much quicker than all the others have. The challenge with technological shifts, is that there isn’t any lessons on how to deal with them. It’s not in the text book. We instead must rely on those old school skills of ingenuity and adaptability.

But this time, there is one important difference.  For the first time we have a choice on whether or not we adapt. Every other time if we didn’t have the resources at our disposal, coping in the new system wasn’t just difficult, it was nigh on impossible. This time we’ve been given the dignity of choice. We can prepare, we can up-skill, and we can participate in the shift to the greatest period of entrepreneurship we’ve ever known. We can relearn the art of self reliance. We can do all these things, mostly for free.

Hence there are two approaches we can take to sure up our uncertain futures.

The common approach: We can wait for the Government to fix things, hope for a universal basic income, regulate against technology which destroys our industry’s business model, support populist and protectionist policy makers, and pretend inevitable technologies can be stopped to maintain our status quo.

or

The better approach: We can start today, firstly by admitting what might change in our industry, our economy and our future. Then, we can quickly start working with our communities to create an infrastructure (Physical and Informational) which provides all of us access to the tools and skills we’ll need to help shape the future economy. We can lead others and inspire them to believe they can adapt by sharing what we learn. We can meet with like minds creating income producing ideas, and expanding industries we couldn’t even imagine yesterday. We can decide that hoping everything will be Ok, isn’t a plan, and remember that we aren’t the first generation to face a challenge which might effect how we work and live. But mostly, we can sleep better at night knowing we aren’t helpless outpatients, but the architects of the future we want to live in.

New book – The Lessons School Forgot – click here for free advance chapter

The coming changes to your house

It’s easy to forget that the places we live in are a direct reflection of our current technology. We’ve all come a long way since we lived in cave 76 (That was for all the Mel Brookes fans), and we generally are living in houses built on top of the shoulders of giants. Great entrepreneurial, scientific and engineering minds which make the modern world very comfortable indeed. We are currently on the cusp of a quite a few physical changes appearing in our homes. Before we explore what they might be, let’s think about how long some of the current technologies in our homes have been around:

  • Letter Boxes – mail services started encouraging these to be installed in houses for deliveries in the mid 1800’s
  • Indoor Plumbing – In the 1860’s only 5% of American houses had running water, flush toilets were very uncommon until the mid 1900’s
  • Driveways – much less than 80 years old as a standard inclusion
  • Electricity – uncommon in suburban homes until the 1930’s
  • White goods – (electricity needed) were rare in modern economies until post WW2
  • Televisions – 1956 in Australia
  • VCR’s – the early 1980s
  • Home Computers – the mid 1980s
  • Internet – the mid 1990’s

There’s many more examples, but you get the picture – where we live changes based on the technological possibilities, and their facilitation requirements of the day. So let’s run a thought experiment on what will begin appearing in homes, based on the technologies about to arrive, and those already here and functioning.

Drone delivery landing pads: With deliveries already happening they need to land somewhere. Apartment buildings are already being designed with them on rooftops, and your house will be no different. Maybe it will have an auto opening lid which closes over after the drop off has been made?

drone landing pads

Smart Toilet: I’ve written about this before – but we can expect it to be our health partner in life, and since Alaphabet had a patent approved on the smart bathroom last year, this is one of those realities which will surprise with its speed of arrival.

Smart shower: One that takes a photo of you everyday… not to invade your privacy, but to ensure it knows you have a dangerous sun spot long before you do.

All glass becomes web enabled screens: If you’ve always wanted a house with a view, well it’s about to come a lot cheaper than anyone expects. All the glass in our homes will become web enabled screens. The resolution of our windows will be indistinguishable from an actual view into the real world. All of a sudden anyone can have a real time, harbour view, which changes perspective on different windows in the house to give perfect perception in real time. Maybe those rich people with actual harbour mansions will make money selling their views via a live feed cam?

Charging stations in all driveways: Our driving future is all electric as is our entire economy. Expect every place cars stop will have a charging facility on hand. If they ever stop – I’ll probably send mine out to work for me when I’m not using it.

Virtual Reality Room: It will be a bit like the home office was, or maybe part of it. We’ll conduct meetings with work that feel so real, we’ll wonder why going to the office is even necessary. We’ll also use our VR rig to shop online for things we want to touch and experience. Our haptic gloves and suits will assist in the purchase process. We’ll also use it to choose hotel rooms, holidays, and even do exercise. In the latter case we’ll have a treadmill which keeps us stationary while we seemingly move around and explore other worlds

Of course the list of ‘new fixtures’ in the home will be longer as many forms of technology will change our habitat. And quite frankly that is the key – not that the technology makes it possible, but that entrepreneurs and emerging startups shine a path on what is possible and make us want it. This is where tomorrows economy will be made up from. Just like Bill Gates promised to put a computer on every desk in every home, and Jobs put one in your pocket, you can put something in our house as well – and you need not invent the thing in question. Exciting times ahead.

Here’s a little radio interview I did on this topic yesterday.

New Book – The Lessons School Forgot

Speed

A friend and I were discussing an imminent launch I am working on. There’s a lot of nervous energy. There are so many factors, reasons to hesitate, be cautious, ensure everything is tight. On the flipside, reasons to zoom ahead.  

He came up with a great analogy for any start up. It’s like the movie Speed.

Speed Movie Visual

You can’t drop below a certain speed or you won’t stay alive. You can’t go too fast or you might crash on a difficult corner. It’s a real balancing act of momentum & due consideration.  

At some point we all approach an unfinished bridge and we just have to go for it!

MBA

Once upon a time I thought it would be a good use of my time doing an MBA. I was quite into my ‘career’ and thought that this would enhance it.

It still can in enhance career prospects in some organizations. But before you embark on upwards of a $30,000 investment and 3 years of your spare time consider this. MBA’s are only a ticket to the ball game, and if you’re an aspiring entrepreneur this ticket is not required.

Graduation

The fact is MBA’s were designed for management with a non business undergraduate degree to enhance their business acumen. They are essentially undergraduate course work regurgitated. Add to this the fact that everyone in conglomerate X already has one and the point of difference it once provided has disappeared.

In a web 2.0 world marketing & entrepreneurship are moving so fast, University course work simply can’t keep up. I think we’re better off following todays leading thinkers (all of which have blogs) and taking a vocation of business related learning. If you really want to stand out, learn another language, learn how to build an e-commerce website, be a leading thinker on social trends

By the way, the name is a giveaway: Master of Business Administration, not Master of Business Strategy… and who wants to become an administrator?