4L

It’s a fairly simple framework.  The 4Ls stand for:  Will I LEARN something valuable or useful, is it LOW-COST to try, is it LIMITED in scope, and is can it be LEVERAGED for other projects.

A brief example of a project you might be considering taking on is learning programming.  So let’s bring it through the 4Ls:

• Will I learn something valuable?  Yes. 
• Is it low-cost to try?  Absolutely, as it can be very low cost or virtually free to learn. 
• Is it limited in scope?  If you structure it and set good parameters, yes. 
• Can it be leveraged for other projects down the line?  This one answers itself.

An example of a project that you *might think twice about is say, learning how to fly an airplane.  Maybe you’re thinking of becoming a pilot.

• Will I learn?  Yes.
• Is it low-cost?  Definitely not. 
• Is it limited in scope?  Probably not.  It takes months to get a private pilot license, let alone starting to build towards a commercial pilot license.
• Can it be leveraged for other projects?  Again, this is hard to say.  Do you plan on becoming a pilot?  Do you plan to impress friends or potential clients with your new skills?  Do you think you’ll have exciting stories to share with people?  Maybe, maybe not.

So even if I’m interested in potentially learning to fly, it probably doesn’t pass the 4L.  

The 4L is a useful framework for managing downside risk.  It’s very useful for many situations, but won’t work for everything.  For instance, it doesn’t answer the question of what you’re passionate about or always dreamed of doing, costs be damned.  For instance, maybe you’ve always wanted to have learned to fly, or to own a boat, or whatever else.  And there can be very valid reasons for going ahead. 

But if you’re looking for what’s never, don’t want to risk the farm, and want to be focused on gaining valuable skills in a shorter time frame, running your ideas through the 4L test is a great place to start.