In this post, I’ll showcase three successful muses inspired by The 4-Hour Workweek book, including lessons learned, what worked, and what didn’t. Income ranges from $1,500 – $25,000 per month…
“LapDawg” by Tonny Shin
Describe your muse in 1-3 sentences.
Portable laptop table(s).
What is the website for your muse(automated business)?
http://lapdawg.com
How much revenue is your muse currently generating per month (on average)?
$10,000 – $25,000 per month
To get to this monthly revenue number, how long did it take after the idea struck?
6 months.
How did you decide on this muse?
I got injured one day, severely twisting my ankle while playing tennis. The doctor said to stay in bed with minimal movement. Well, there is not much to do in bed lying around all day, and I needed my laptop. But it was super uncomfortable to use! Your groin area heats up a lot when it’s on your lap, which is no good for a male. I tried propping it up on a pillow but the laptop would overheat. I also got sore in a hurry when I was on my stomach. I needed something to hold my laptop that was portable, ergonomically comfortable, and easy to adjust to any position I wanted.
What ideas did you consider but reject, and why?
Starting an internet marketing and consulting business. There were just too many negatives. It turned out to be: (1) Un-scalable, since there is only one of me; (2) Time-consuming, not only in the technical/maintenance side, but also educating the client; (3) Cost heavy. You need to find good web designers and skilled programmers, and pay them a good hourly rate; (4) Research heavy. You need to keep up with this stuff all the time; (5) On call. You have to be around if you want to bring in sales and keep your clients happy, no matter what situation comes up.
My most important goal for me planning my own business was all about “ROE,” or Return On Effort, and NOT just “ROI.” The ROE for consulting would have been way too low, while LapDawg happens to be very high!
What were some of the main tipping points (if any) or “A-ha!” moments? How did they come about?
The main “A-ha” was realizing that starting with the right complementary partners was key to long-term success! Fortunately, my job at the time gave me access to talented web designers and programmers. Selling them on the idea, getting the right agreements in place, and then splitting the work involved took time to develop. But in the end, you have to trust that people will do what they are best at.
To this degree, it substantially cut our initial costs as I partnered up with a web designer, and business analyst/programmer who, by profession, allowed maximum efficiency in getting things done right!
What resources or tools did you find most helpful when you were getting started?
Since my partners lived far away from each other in our city, it was hard to get together face-to-face on a regular basis. We decided that a private online collaboration tool would help us communicate better getting the project up and running. So we signed up for Central Desktop. At the time, they allowed one project to be free. Anymore and you had to pay. We definitely maxed out that one free project!
We had good private discussions and everything was documented. It turned out to be valuable in that I can now look back and see what I did wrong or right.
What were your biggest mistakes, or biggest wastes of time/money?
Getting the pricing of our product right. Our initial price included shipping. It turned out that, due to the dramatic variations in shipping costs, we were not making any money and actually lost some in our first month.
Raising the price, splitting shipping separately, and changing the value proposition on our website helped significantly.
What have been your key marketing and/or manufacturing lessons learned?
Very important: For Chinese manufacturers, make sure they are the original manufacturer. A lot of Chinese companies will claim they are manufacturers but are in fact middlemen. They will take your requests and modifications, then outsource them to the lowest priced manufacturer who may not produce the best quality, but will give them the best deal. They will go to great lengths to produce authentic proof that they are the original manufacturer, and you have no way of knowing unless you physically visit them.
Hire a consultant who will check them out in person and report their findings back to you.
If you used a manufacturer, how did you find them? What are your suggestions for first-timers?
Make travel plans to visit Canton Fair. Not only is it one of the largest in the world, it’s also a real eye-opener on what brand names companies use to produce their stuff. Each booth will have brochures and catalogs on what they manufacturer, which are free to pick up in exchange for your business card. Make sure to bring LOTS of business cards!
Any key PR wins? Media, well-known users, or company partnerships, etc.? How did they happen?
We were mentioned in Kevin Kelly’s newsletter (contacted him).
Placement in “The Shop” in Rolling Stone Magazine for 2 months. (Paid advertisement)
Hands-on reviews from The Gadgeteer, Virtual Hideout, About.com’s Mobile Office, and Digital Trends (all contacted via email).
Where did you register your domain (URL)?
http://moniker.com
Where did you decide to host your domain?
http://softlayer.com
If you used a web designer, where did you find them?
I partnered with one.
If you were to do it all over again, what would you do differently?
Make sure that you have your business basics down first. Proper business bank account(s), incorporate earlier, record expenses properly, keep receipts, and get your accounting straight. It’s very hard to switch things over later, so invest some time at the outset and get it right.
Although obvious in practice, it’s hard to do as it is detail-oriented work and requires patience. It takes away from the “real” work that needs to be done but come tax time, you will absolutely regret that you did not do this from the start. It becomes much more error prone and harder to do everything at the end of the corporate year.
What’s next?!
Develop more products, improve our current products, create more product videos, try affiliate marketing, and experiment more with social media. There is a whole world of exposure methods online. You have to dig in and try them all!
“LapDawg” by Tonny Shin
Describe your muse in 1-3 sentences.
Portable laptop table(s).
What is the website for your muse(automated business)?
http://lapdawg.com
How much revenue is your muse currently generating per month (on average)?
$10,000 – $25,000 per month
To get to this monthly revenue number, how long did it take after the idea struck?
6 months.
How did you decide on this muse?
I got injured one day, severely twisting my ankle while playing tennis. The doctor said to stay in bed with minimal movement. Well, there is not much to do in bed lying around all day, and I needed my laptop. But it was super uncomfortable to use! Your groin area heats up a lot when it’s on your lap, which is no good for a male. I tried propping it up on a pillow but the laptop would overheat. I also got sore in a hurry when I was on my stomach. I needed something to hold my laptop that was portable, ergonomically comfortable, and easy to adjust to any position I wanted.
What ideas did you consider but reject, and why?
Starting an internet marketing and consulting business. There were just too many negatives. It turned out to be: (1) Un-scalable, since there is only one of me; (2) Time-consuming, not only in the technical/maintenance side, but also educating the client; (3) Cost heavy. You need to find good web designers and skilled programmers, and pay them a good hourly rate; (4) Research heavy. You need to keep up with this stuff all the time; (5) On call. You have to be around if you want to bring in sales and keep your clients happy, no matter what situation comes up.
My most important goal for me planning my own business was all about “ROE,” or Return On Effort, and NOT just “ROI.” The ROE for consulting would have been way too low, while LapDawg happens to be very high!
What were some of the main tipping points (if any) or “A-ha!” moments? How did they come about?
The main “A-ha” was realizing that starting with the right complementary partners was key to long-term success! Fortunately, my job at the time gave me access to talented web designers and programmers. Selling them on the idea, getting the right agreements in place, and then splitting the work involved took time to develop. But in the end, you have to trust that people will do what they are best at.
To this degree, it substantially cut our initial costs as I partnered up with a web designer, and business analyst/programmer who, by profession, allowed maximum efficiency in getting things done right!
What resources or tools did you find most helpful when you were getting started?
Since my partners lived far away from each other in our city, it was hard to get together face-to-face on a regular basis. We decided that a private online collaboration tool would help us communicate better getting the project up and running. So we signed up for Central Desktop. At the time, they allowed one project to be free. Anymore and you had to pay. We definitely maxed out that one free project!
We had good private discussions and everything was documented. It turned out to be valuable in that I can now look back and see what I did wrong or right.
What were your biggest mistakes, or biggest wastes of time/money?
Getting the pricing of our product right. Our initial price included shipping. It turned out that, due to the dramatic variations in shipping costs, we were not making any money and actually lost some in our first month.
Raising the price, splitting shipping separately, and changing the value proposition on our website helped significantly.
What have been your key marketing and/or manufacturing lessons learned?
Very important: For Chinese manufacturers, make sure they are the original manufacturer. A lot of Chinese companies will claim they are manufacturers but are in fact middlemen. They will take your requests and modifications, then outsource them to the lowest priced manufacturer who may not produce the best quality, but will give them the best deal. They will go to great lengths to produce authentic proof that they are the original manufacturer, and you have no way of knowing unless you physically visit them.
Hire a consultant who will check them out in person and report their findings back to you.
If you used a manufacturer, how did you find them? What are your suggestions for first-timers?
Make travel plans to visit Canton Fair. Not only is it one of the largest in the world, it’s also a real eye-opener on what brand names companies use to produce their stuff. Each booth will have brochures and catalogs on what they manufacturer, which are free to pick up in exchange for your business card. Make sure to bring LOTS of business cards!
Any key PR wins? Media, well-known users, or company partnerships, etc.? How did they happen?
We were mentioned in Kevin Kelly’s newsletter (contacted him).
Placement in “The Shop” in Rolling Stone Magazine for 2 months. (Paid advertisement)
Hands-on reviews from The Gadgeteer, Virtual Hideout, About.com’s Mobile Office, and Digital Trends (all contacted via email).
Where did you register your domain (URL)?
http://moniker.com
Where did you decide to host your domain?
http://softlayer.com
If you used a web designer, where did you find them?
I partnered with one.
If you were to do it all over again, what would you do differently?
Make sure that you have your business basics down first. Proper business bank account(s), incorporate earlier, record expenses properly, keep receipts, and get your accounting straight. It’s very hard to switch things over later, so invest some time at the outset and get it right.
Although obvious in practice, it’s hard to do as it is detail-oriented work and requires patience. It takes away from the “real” work that needs to be done but come tax time, you will absolutely regret that you did not do this from the start. It becomes much more error prone and harder to do everything at the end of the corporate year.
What’s next?!
Develop more products, improve our current products, create more product videos, try affiliate marketing, and experiment more with social media. There is a whole world of exposure methods online. You have to dig in and try them all!