Wednesday, February 4, 2009

R. Kiyosaki explains the Perfect Business

Robert Kiyosaki, the famous author behind the Rich Dad, Poor Dad series of financial books has talked about network marketing as one of the most perfect business models on the planet.

To understand what he means by a perfect business, you must understand the background of the E, S, B, I quadrant.
E stands for EMPLOYEE, where you are under legal employment working for an employer getting a payroll. Kiyosaki claims that most employees are stuck in a rat race, where the employee constantly working to pay off his debts to the government, the taxation institutes as well as the banks. He finds that there is little freedom and to exit from the rat race, you must progress into the different quadrants.
S stands for SMALL BUSINESS. He quips that it stands for solo businessman as well where in order to do things right, you gotta do it yourself! This quadrant of businessmen rarely leverages on others because they not only have the responsibilities of a business owner, they often need to double up as the worker and sales rep, the customer service rep and sometimes, even the delivery guy!
B means BIG BUSINESS, it is the quadrant Kiyosaki wants to get people into where you run a BIG business by leveraging on people ‘under’ you.
Lastly, the ‘I’ quadrant is where big business INVESTORS wind up. They use their money to earn MORE money. Kiyosaki describes the network marketing business model as the perfect business simply because he believes that you can easily jump from the ‘E’ quadrant directly into the ‘B’ quadrant without going through the hardships of the ‘S’ quadrant.
When you start a network marketing business, the most important skills you will learn are business skills. Skills such as managing people, understanding the needs of your customer, how to invest your time and money wisely and lots of self-improvement, mindset changing awareness that will take your business skills to the next level.

This is our chance to change! Feel Good, Look Great!