4-Hour Workday

After hearing that I’m self-employed, multiple people recommended to me that I read the book, “The 4-Hour Workweek” by Timothy Ferriss. Enough of them did so that I decided to bump it to the top of my reading list (by which I mean, I put a hold on the e-book at my local library). Nearly a year later – this book is surprisingly popular even though it was released years ago— I got a notification that it had been auto-checked out. I have a 10-month old, am lightly renovating my new house, and run my own business, so there hasn’t been a lot of full-length book reading going on at my house lately. But I managed to make it through this one in dim lighting during naptimes.

While the author made some good points (more on that below), he didn’t seem like the kind of person I’d enjoy being around. His financial concept seemed primarily based on exploiting other workers, either those who weren’t part of the “New Rich” or who lived in developing countries, in order to provide himself (or the reader) with more freedom and financial gain. I’m aware that many major businesses outsource to lower-income countries. While it’s legal, I’m not interested in being one of them or in competing with their rates. When I first went freelance, I created a profile on UpWork and investigated several similar sites. It was a short-lived venture, as projects frequently went to people bidding at very low rates, including amounts below the U.S. minimum wage. I don’t personally feel it’s ethical to take advantage of individuals in low-wage countries simply to maximize personal gain.

On a more positive note, some points the author and I agreed on:

• Understand the concept of absolute income

This is a helpful concept for explaining to people why I’m not interested in booking clients 40 hours a week. In the book’s example, Individual 1 makes half the amount of Individual 2 but works significantly less time. While Individual 1 makes less money, they are technically working at a higher hourly rate and so long as their income meets their needs have the bonus of free time.

Could I make more money if I spent more time hustling clients and filled up every hour of my billable day? Sure, and some people do. I haven’t yet matched the value of the salary + benefits I was bringing in while working full-time (although I got close last year), but I feel much richer. While the money is important, I know how much I need to hit my break-even point and my goals for the year – while leaving flexible time for me to spend with my son or focus on other aspects of my life.

• Conquer fear by defining it

One of my friends advised me to walk through the worst-case scenario before I made the final decision to go out on my own. It was helpful to do so – my worst-case scenario was that I wouldn’t be able to support myself, wouldn’t be able to find another job, would burn through my savings and would lose my home. I also knew, however, that if push came to shove, I could move in with a family member and they wouldn’t let me go hungry.

Taking the time to verbalize your fears can also help you realize how realistic they are. I didn’t know the odds of my success as an entrepreneur, but my past track record showed that I was pretty good at getting someone to hire me and privileged enough to know I wouldn’t end up homeless.

• Don’t save it all for the end

I was one of those people who thought, “Am I really unhappy enough with my job to take this risk? Wouldn’t I be better off pushing through and getting my regular paychecks, annual raises, and benefits?” Your answer might be yes, but mine wasn’t. My job wasn’t terrible; it just wasn’t what I wanted to be doing.

Ferriss makes the point that things don’t have to be hellish for you to leave; you just need to want something different out of your life. He advocates for considering the price of inaction, instead of just the risks of action. I was burned out; my mental and physical health were beginning to suffer, and it was time for me to make a change. Don’t “save it all for the end” and wait for retirement to do the things you want to do. Since becoming self-employed, I’ve traveled more, staycationed and explored in my own city, read tons, participated in more outdoor activities, learned new things, and decided to have a child.

• Get over the fear of rejection

All business owners must do this. You will be rejected many, many times by potential clients. It’s not personal. Sometimes you aren’t a good fit, they don’t have the budget, the authority to hire you, or they flat-out aren’t interested. Shake it off and keep it moving. You lose nothing by pitching yourself to a potential client.

• Have a plan to combat social isolation

I’m still working on this one after the move. Social interaction is much harder to come by when you’re a company of one, work from home, and have an infant. Social media and technology can help, but it doesn’t replace the need to interact with other adults in an intelligent manner.

• Create the maximum income from the minimum necessary effort

Within reason; I’ve already discussed that I don’t believe this includes exploiting others. The goal shouldn’t necessarily be more customers. It’s important to be selective about who you take on and the impact they have on both you and your business. I agree with Ferriss here; sometimes it’s better to let a difficult client go so that you can focus your mental energies on finding new clients or on deepening the relationship with those you enjoy working with.

• Don’t create the perception that you are available 24/7

Your client does not pay your hourly rate for 24 hours out of the day – if they do, disregard this advice. Ferriss recommends batching emails so you can respond effectively and don’t feel the need to constantly check messages, delegating the appropriate responsibility to your employees (if you have any), and training clients on your response times. I 100% agree with this. Time is valuable. Be clear with your client about what to expect and you’ll both be more satisfied with the relationship.

I don’t have a four-hour workweek, but I do have a four-hour workday. I’m living proof it’s possible to work part-time and support your family. In addition to the points I’ve pulled out above, here are my tips for doing so:

• Price yourself correctly

My standard hourly rate is significantly higher than a temporary employee, yet lower than what an organization would pay for someone at a large consulting agency. Overall, my goal isn’t to compete for the lowest bid – it’s to price myself correctly for the experience and value I bring to the table. Bringing in a new client takes effort; you want the payout to be worth it.

If everyone is accepting your rate without negotiating, you are priced too low! Have I lost clients because they need a lower rate? Sure have; and I negotiate depending on how interesting the project is, if I support the organization’s cause, believe they truly don’t have the funding, or if I’m looking to fill a gap in my schedule. But I know my worth, and that won’t be a fit for every client.

Don’t lowball yourself, especially as a female business owner. Studies show women get paid less than men and have a harder time asking for money; break the cycle. When I first went out on my own, I asked a male colleague what rate he freelanced at. And then I raised my prices. Your rate needs to cover not only the time you spend on the project, but also the costs of client acquisition and administrative needs.

• Aim for a set income, not to fill time

Every year, I make a new budget based on last year’s spending that breaks down the amount of money I need to bring in to hit a break-even point and then set a goal income. Many small business owners work more than 40 hours a week; I’m not one of them. I value the flexibility that being my own boss offers, and I have set my prices high enough that I don’t need to fill 40 hours a week in order to meet my financial goals.

• Set boundaries

With a flexible schedule, you get to decide when you’re working – but it can be easy for work to bleed into the rest of your day. Define the work times that are the best fit for your schedule, clients, and personality. Don’t check work emails during off-work hours when you won’t be able to address an issue immediately.

Example: I mostly work afternoons because I like to putter around with my baby in the morning and have a leisurely breakfast. Most baby-friendly activities, like the library storytime, are held mid-morning. He’s still taking mid-morning naps, but when that phases out in a few months, we’ll be ready to take advantage of it. While I currently only have East Coast clients, it’s also easier to schedule client calls in the afternoon to accommodate West Coast attendees. And it’s more convenient for my child-care provider.

• Provide and expect respect

Clients occasionally want to take their frustrations out on you. While some of that is human nature and forgivable, don’t let the client run all over you. And if you’re employed, don’t let your employer. I have told clients that the way they were speaking to me was unacceptable. Give the client the chance to correct their problem behavior, but don’t continue working for someone who doesn’t respect your work, your time, or you as a human being.

• Don’t buy into the cult of the busy

As a culture, we glorify busyness. I was reluctant to even write this post, because I was worried admitting that I only work 4-hour workdays makes me seem unprofessional or unsuccessful. Twelve years ago, when I was in grad school, I told my compatriots that my life goal was to work part-time and still afford my lifestyle. I quickly learned to stop saying that. But guess what? It was then and it still is now. And it’s awesome.

• Weigh time vs. chance of success

When you’re working limited hours, pay attention to what is successful. Focus on the high-impact items, try new things, and eliminate anything that is time-consuming and doesn’t produce value.

Ferriss recommends sending personalized emails or cold-calling individuals who can help you – whether it’s celebrities, CEOs, what have you. I don’t personally do this, although I don’t see an issue with doing so. I do cold-email potential clients. I’ve found that it’s not always worth the time to personalize the email you’re sending to a potential client if you don’t have a prior relationship with them, but it does help to find a personal email address rather than using a generic info or HR address. Thankfully, it’s typically easier to find direct email addresses for communication or media professionals on websites than for other sub-specialties.

• Have a rainy-day fund

Life happens. Unexpected bills pop up; clients will pay you late, decide they don’t need as much time or as many case studies, etc. as they originally contracted for. Having a rainy-day fund will make everything related to running a business less stressful. It will also allow you the flexibility to be choosier about your clients, hold firm on your desired rate, and not panic when your schedule isn’t fully booked.