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.

The hidden asset base

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I was speaking with a friend about some of the great quotes from long gone captains of industry. J.D Rockefeller, Henry Ford, Andrew Carnegie, Benjamin Franklin and cohort. One quote that got me thinking was this:

“If I went broke, just give me my 5 best people, and we’ll be double the size in 5 years.”

I searched Google, Wikiquotes, Brainyquote and all sorts of places to find who it was with no luck. My buddy said it was JD Rockefeller, but I can’t confirm it is, or even find the quote. In the end it doesn’t even matter. What I do like about it is the layers it carries. Some of which are pertinent in an age of technology disruption.

  • The people around us are more important than ourselves.
  • The business is the people and the culture, not the infrastructure.
  • Business is ephemeral, skills are enduring.
  • It’s easier to grow with a fresh start, than with legacy constraints.

But above all it reminds us that our most valuable asset is what we know. Something which can’t be taken away from us, even when a business falls apart.

Ignore what the teacher told you, and just make things up

old school

Watch a 5 year old kid play for half a day and you’ll see levels of creativity that’ll blow your mind. You’ll wonder in awe where their natural ability to ‘make things up’ comes from. You’ll be inspired by how they see the world and what it makes them think and do.

We used to see the world that way too.  But what happened was for the first 18 years of our lives we got told how to see the world. In fact, the concept of making things up brings back some very strong and personal memories for me. I can remember when I reached High School (Grade 7-12 in Australia) and that it was no longer Ok to make things up. We had to reference where we got our ideas from. All of a sudden my opinion didn’t matter. What started to matter was researching someone else’s opinion, someone who had been ordained by industrialised society and had been published. It felt so weird. Why couldn’t I just write what I think? Why did it have to be a quotation from someone else? Why did what they think matter more than what I think? We all got taught  got taught stop thinking and start rehearsing. Rehearsing for what you may ask?

Rehearsing the lines for some kind of monetary industrial pantomime.

We were getting taught how to play inside the the modern economy.  An elongated economic play in which we would become ‘extras’ in someone else’s dreamscape. Someone else had the starring role, but they needed all sorts of support so they could be the stars of the show. And we went along with it. But now the exact opposite of what we got told, is where all the value is being created.

The trick they pulled on us to not have any original ideas, to not create anything new, to keep our opinion to ourselves is rapidly becoming redundant. And this gets me excited. We all still have the ability to just ‘make things up’. Now that we have access to the tools to create anything, now that the economy is being totally redesigned, we just need to forget what we got told, and start to write some of our own lines.

New Book – The Great Fragmentation – out now.

Going back to the well

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This year I’ve been working steadily on my new book and sharing ideas with people who want to know about the technology revolution. And while it is true we are always learning while on the job, I feel like people in the information business need an off-season as much as professional sportspeople and musicians do. Problem is we don’t tend to plan for it on an annual basis as much as other ‘seasonal industries’ do. Which could lead us into a dangerous pattern of already knowing what we know, or at worst obsolescence through ignorance. The ironic thing is that this exact behaviour pattern is what is causing large corporations to be disrupted. They are so busy doing what they do, making what they make and utilising the assets they already own that they rarely go back to the well.

If you’re an entrepreneur or freelancer (like I am) then we need to ensure we don’t get so deep into our work wormhole that we ignore the world around us. Screens and offices are very dangerous places to watch the world from. It’s probably better to make, break and explore a few things outside of our work to ensure we keep our edge.

New book – The Great Fragmentation – out now!

What school forgot & the School of Life

School taught me three really important things. It taught me to read, to write and to count. Pretty much that is where it ends. At University the process of being inside it taught me how to learn. While I’m being somewhat flippant, if I actually break it down and look hard at the subjects taken and the lessons learned, there wasn’t much outside of these things. In fact, I’d go as far as saying that everything important I know: Including how to make a living, and how to interact with other humans and my family, I taught myself. I owe all of what I learned to my family, my friends, observation and my self curated library.

Have you ever noticed that economics lessons in school, and University for that matter (I should know I majored in it) teach you about the economy as it pertains to the national and global version? Have you ever noticed that accounting and finance lessons in school, and in University for that matter, are focused on how the numbers work in running large corporations, not the corporation that is you and your personal finances.The system was set up by and for them. Not us. That’s why the majority of the happy people I know have taken personal vocations of learning to fill the void that schooling created. That’s why self help books sell so well.

In fact, most people know who to earn money – but very few actually know how to manage it. Most people know how to manage communication in a company setting – but few of us know who to manage our own personal lives so well. It’s not an accident, our education system was designed as part of the industrial revolution. In itself its primary purpose was to educate kids so that they could work well in the emerging industrial economy as employees. An interesting chart below is from Googles book scanning program – this ngram as they are known measure the frequency of any word appearing in books in percentage terms. I inserted the word ‘job’ and  you’ll see that the word job, basically did not even exist until we were well inside the industrial period of living.

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We’ve been indoctrinated for the first 21 years of our lives. At a time when our mind is so malleable, to be employees, more than humans. We got taught how to operate in the system, but they forgot to teach us about the human operating system. The good news is that this is changing. We now know that the human mind is far more malleable as we grow older than previously thought. We are also lucky enough to have a sub culture of innovators doing something about it.

Step Forward the School of Life.

The School of life is a new space in Melbourne which is a cafe, bookshop, classroom and community enterprise which endeavours to fill the gaps formal education inevitably creates. It’s a startup I can really appreciate. The brain child of global thought leader Alain de Botton. The moment you walk in you can feel what they are trying to do. You can sense the empathy and the humanity. The books they sell and the courses they teach provide lessons for humanity, as opposed to lessons for the economy. Maybe if our governments focused on the former, there’d be less problems with the latter.

I took a few pictures when I stopped in for a morning coffee.

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The photos are telling. You can see everything from a list of courses which matter so much to us as people, to the little nudges and messages which request we challenge our own doctrine. I’m hoping this type of thing is the start of our community redefining what learning is for , but also redefining the type of learning that matters in the post industrial age of abundance.

If you happen to be in Melbourne, or any of these cities globally, then I think it’s worth the effort to pop in and say hello.

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