The SwissBooks Terms of Engagement

  1. Preface: The following document embodies a series of principles that outline the tenets and beliefs of the SwissBooks community. This article has been written with brevity and ease of reading in mind, links relevant to the further discussion are given for each topic where available. The information herein is by no means exhaustive.
  2. Revenue:  Your venture will annually earn between $300,000 and $6 million each year. We are completely dedicated to helping like-minded business owners reduce the only 3 sources of negative cash flow that matter if you are doing it right: taxes, payroll, and housing.  It is not fair to recommend a product that is not going to be tailored to your needs.  Over $6 million of revenue in Canada requires monthly reporting to the CRA and usually means you are less anti-fragile.  After-tax net income is more important than your gross income before expenses.
  3. Real estate and debt: You will abstain from mortgages, debt, and rental properties before you have healthy cash flow from a SCALABLE corporation (not trading time for money). Consider an income property only after you’ve paid off the mortgage on your residence. If you divide the net operating income from a rental property by the cost of the property you get the investment yield. From this value, we can determine if it is economically viable to rent out the property or sell it. Having positive cash flow is not good enough to determine economic viability.  Do not fall into the temptation of cheap credit and live far below your means.  In German, borrowing is ‘schulden’, the same word for sin. If you young rent- if you are old and settled down and can make a 20% down-payment you should consider a home less than 2.5x your gross annual household income. If you can make a down payment of at least 30% you could consider a home that costs up to 4x your gross annual household income. A condo is usually less desirable – only if the alternatives simply do not suit you or if you have the resources to acquire a multi-unit property.
  4. Ventures to avoid: Unless you personally net more than $20,000/month after-tax you will refrain from the following ventures: real estate, franchises, consulting, auto sales, and any business that has more than 15% of their revenue coming from a single customer. Stick to businesses that have at least $300K annual revenues with 20% pre-tax margins (scale and/or recurring revenue).   Catering to all businesses is a horrendous waste of time and frustrating by definition- all energy is wasted. Help people who have the potential to improve – they must make at least as much as they would through a regular job– otherwise they should focus on sales or a career. Without the career capital to support your business it will just be a downward spiral and 100x harder to fix.
  5.  80/20 Rule. “All activities consume the same limited time and attention. If you service low-impact activities, you’re taking away time and attention you could be spending on higher-impact activities. And because your time returns substantially more rewards when invested in high-impact activities than when invested in low-impact activities, the more of it you shift to the latter, the lower your overall benefit.”  -Cal Newport, DEEP WORK
  6. Everyone in our lives is either moving up or out of our lives.  Selectively choosing the people you surround yourself with is essential. 80% of your problems can be attributed to 20% of your contacts.  Busyness and exhaustion are your enemies.  All regrets in life involve wasted time. This is the only thing you can never get back so never waste a second on marginal returns, short-term gains and people with no value. We have no sympathy for those who created their own mess. Poor choices reveal poor character. This eliminates the empty work that plagues regular people and allows us to focus on what really matters. It is amazing how our customer service improved when we focus only on people that like us.  Not a big deal, just not the same interests.   We don’t have a problem with your choice – we just don’t cater to everyone’s needs.
  7. Living far below your means. Easily done when you are after-tax earnings are at minimum 2x-4x the median.  Aim to set aside 50-90% of all the money you collect, until you can fund your lifestyle entirely with passive income. Then 100% of your active income can go towards riskier investments. Losing $1 million dollars when you still have $3 million is worth the risk when you have the change of being worth $10+ million.
  8. Annual lifetime spending.  You agree that spending $5 million between ages 20-40 is better than spending $50 million at age 60-80.
  9. Investment in society.  Our value proposition (the whole reason our company exists) is that at a cost of just 1% to our subscriber we reduce their total costs by 3-30%.  Our job is to legitimately minimize taxes– NOONE can take more than what they pay in taxes. We will not be an accessory to negative tax rates whereby the government gives someone more (through benefits + through use of tax-funded infrastructure and services) than they remit in taxes.  The roads, healthcare system, schools, police, and government can not function without a net contribution from society.  You will pay at least $7,200 in corporate income tax based on the minimum $300K revenue with minimum 20% pre-tax margins.
  10.  Operations: Use your business account (bank/credit card) for expense transactions vs. cash or personal debit/credit cards. Send us your statements in 1 of 3 formats in order of preference: .csv, .pdf, paper statement. There is too much choice and we all suffer decision fatigue. Embrace minimalism and bring focus and clarity to your life. Have your necessities automatically delivered to you in a biweekly shipment. Shop only one per year – towards the end of your fiscal year to accelerate access to CCA on capital additions.
  11. Product Improvement.  Our clients and ourselves commit ourselves to the best quality in its products and thus creates long-term added value for customers.
  12. Customer Service. We listen to our subscriber and give them clear and understandable answers in a friendly manner. We concentrate on finding solutions for the challenges of our customer. We support our customer reliably and carry out what we have promised. We always answer customers’ questions promptly and simply.
  13. Continuity and maintenance.  We efficiently produce error-free work with mechanical precision. We touch things only once: paper, email etc.We are clear, accurate, and thorough  (high level of detail). We do not multi-task or switch between tasks. We are extremely focused and perform our work with interest and commitment. We work in an orderly/systematic manner. We adhere to all relevant laws and regulations, internal directives and rules. We work independently on routine tasks. We are trustworthy, reliable and responsible.
  14. Quality and performance (for computing tasks).  We concentrate for minimum uninterrupted 90-minute blocks.  We only check email twice per day to reduce cognitive residue.

Christian’s pro-tips:

  1. Fast for 16 hours minimum at least each and every day (from your last meal, sleep, skip breakfast).
  2. Prioritize and write the only tasks you need to do the next day.
  3. No screens before bed, sleep on natural latex mattress away from metal.
  4. Wake up & supplement with liquid fish oil from Scandinavia, grape seed extract, Green tea and Vitamin D (October – April).
  5. Make a grand gesture and commute to work signifying the importance you place on your work (no music – either audio book, podcast or productive meditation).
  6. Be extremely focused and work unnetworked to the world for 4 hours (no multi-tasking, checking phone/social media).
  7. After 4 hours of deep work, review what you did wrong, what you did right. Remove everything physical and procedural that does not add value. Only respond to necessary e-mails and do other lower level items.
  8. Meal 1: 20% of your day’s caloric intake (1.6g protein/kg body weight).
  9. Review incomplete tasks and plan for their completion. Do not think about them until you work on them the next day.
  10. Intense fitness/athletics 3 hours after meal 1. Reverse pyramid German volume training works well.
  11. Meal 2: 60% of your day’s caloric intake  (1.6g protein/kg body weight). Wild Alaskan Salmon + turmeric, broccoli, spinach.
  12. Read and recharge in a relaxing environment, minimize distractions (attention fatigue), aids insights and improves the ability to perform next day. When financially independent a 50-50 balance between work and relaxing is ideal.
  13. Meal 3 (last): 20% of day’s calories.