Tuesday, January 05, 2010

The CASHFLOW Quadrant: Employee vs. Entrepreneur

Many people have read the bestselling books The Cashflow Quadrant and Rich Dad/Poor Dad written by Robert Kiyosaki.  Many of us have even used that information to change our perspective on money and business ownership and have shared with hundreds even thousands of people the principles Kiyosaki teaches.  For many of us, the first time we were exposed to the information in Kiyosaki’s books and that Cashlow Quadrant, we were almost in shock.  I don’t know about you, but the first time Orrin Woodward drew out that thing for me, I was not the happiest of campers.  In fact, I was downright angry that it seemed as if this perspective had been kept from me.  I was, however, very thankful that Orrin had the guts to share this information with me.  It has completely, and forever, changed my perspective on money, wealth, and the achievement of success in business.
Perhaps you have heard about this Cashfow Quadrant and may have even seen someone draw it out for you at a Team Open Meeting but do not quite fully grasp its relevance to you.  The information is powerful and the paradigm of thought surrounding it can open up your mind to the opportunities that abound in today’s market despite the doom & gloom reports of the liberal media.  Knowledge is power and it begins with having the right information.  I would highly recommend getting and reading The Cashflow Quadrant for your self.  Here is a video where Robert Kiyosaki himself goes through the difference in thinking between each of the Quadrants and shares his perspective about the network marketing and direct sales industries.

Employees clock in every day to make someone else rich. They earn a set wage and – if they’re lucky – a nice benefit package.

Self-Employed people clock in for themselves, so they have a bit more freedom but are still limited by 24 hours a day.

Business Owners have even more freedom, and we’ve all seen the success they can enjoy. People like Bill Gates, Michael Dell, Richard Branson…

Investors, on the other hand, don’t “work” for their money, they put their money to work for THEM!

Finding your proper place in The Cashflow Quadrant can totally revolutionize your income and your life.

It’s the secret to learning how you can work less, earn more, pay fewer taxes and enjoy greater financial security.

A financial revolution is underway. Times, trends and market forces are redefining business as usual.

Robert Kiyosaki, the founder of the Rich Dad, Poor Dad empire has written The Cashflow Quadrant to liberate us all from the madness of the Rat Race.

If you’re ready to elevate your station in life and set yourself free from the chains that are holding you down, order your copy of The Cashflow Quadrant today!

The following is an article written by Robert Kiyosaki further explaining the difference in thinking between the Leftside and Rightside of the Cashflow Quadrant and making the mental move from Employee to Entrepreneur.

Take Control of Your Wealth | SUCCESS Magazine | What Achievers Read
Take Control of Your Wealth

The Transition from Employee to Entrepreneur 

Robert  Kiyosaki  August 31, 2009
The power of our thoughts may never be measured or appreciated, but it became obvious to me as a young boy that there was value and power in being aware of my thoughts and how I expressed myself. I noticed that my poor dad was poor not because of the amount of money he earned—which was significant—but because of his thoughts and actions. As a young boy, having two fathers, I became acutely aware of being careful in deciding which thoughts I chose to adopt as my own and to whom should I listen—my rich dad or my poor dad.

"I noticed that my poor dad was poor not because of the amount of money he earned—which was significant—but because of his thoughts and actions."

I wasn’t born a natural entrepreneur. I had to be trained. When I was growing up, my poor dad often said, “Go to school and get good grades so you can find a good job with good benefits.” He was encouraging me to become an employee.

My rich dad often said, “Learn to build your own business and hire good people.” He was encouraging me to become an entrepreneur

The CASHFLOW Quadrant explains that there are four types of people that make up the world of business, and they are often technically, emotionally and mentally different people. 

E stands for employee; S stands for self-employed or small-business owner; B stands for big-business owner (more than 500 employees); and I stands for investor

For example, employees will always say the same words, whether they are president or janitor of the company. An employee can always be heard saying, “I’m looking for a safe, secure job with benefits.” The operative words are safe and secure. In other words, the emotion of fear keeps them boxed into that quadrant. If they want to change quadrants, not only are there skills and technical things to learn, but, in many cases, there are also emotional challenges to overcome. 

A person in the S quadrant may be heard saying, “If you want it done right, do it yourself.” In many cases, this person’s challenge is learning to trust other people to do a better job than they can. This lack often keeps them small, since it’s hard to grow a business without eventually trusting other people. If S-quadrant people do grow, they often grow as a partnership, which in many cases, is a group of S’s coming together to do the same job. 

B-quadrant people are always looking for good people and good business systems. They do not necessarily want to do the work. They want to build a business to do the work. A true B-quadrant entrepreneur can grow his or her business all over the world. An S-quadrant entrepreneur is often restricted to a small area, one that can be personally controlled. Of course, there are always exceptions. 

An I-quadrant person, the investor, is looking for a smart S or B to take care of their money and grow it. In training his son and me, rich dad was training us to build a successful S-quadrant business that had the capability of expanding into a successful B-quadrant business. 

One day I asked my rich dad what the difference was between an employee and an entrepreneur. His reply was, “Employees look for a job after the business is built. An entrepreneur’s work begins before there is a business.” 

Many entrepreneurs do not realize that many of the problems their businesses face today began yesterday, long before there was a business. The entrepreneur’s most important job is to design a business that can grow, add value to its customers, bring prosperity to all those who work on the business, be charitable and eventually no longer need the entrepreneur. Before there is a business, a successful entrepreneur is designing this type of business in his or her mind’s eye. According to my rich dad, this is the job of a true entrepreneur. 

Rich dad went on to explain that the world is filled with different types of entrepreneurs. There are entrepreneurs who are big and small, rich and poor, honest and crooked, for-profit and not-for-profit, saint and sinner, small-town and international, and successes and failures. He said, “The word entrepreneur is a big word that means different things to different people.” 

It’s time to take control of your thoughts and how you express yourself. In which quadrant do you sit? In which quadrant do you want to be? Today’s economy is a perfect time to restart, rethink and begin anew. Start the transition from employee to entrepreneur now. 

Robert Kiyosaki, author of Rich Dad Poor Dad, is an investor, entrepreneur and educator. This article is based on Robert Kiyosaki’s Before You Quit Your Job: 10 Real-Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business. Copyright © 2005 Robert T. Kiyosaki with Sharon L. Lechter. Published by Warner Books.