Robert Kiyosaki, the author of the best-selling series of “Rich Dad, Poor Dad” books has recently published a new book. This is a review of this latest book, “The Business of the 21st Century”.
He introduces the book:
“In The Business of the 21st Century, I’m going to show you why you need to build your own business, and exactly what kind of business. But this isn’t just about changing the type of business you’re working with; it’s also about changing you. I can show you how to find what you need to grow the perfect business for you, but for your business to grow, you will have to grow as well.”
The premise of this book is that you can STILL experience success in business. Despite the “tough times” that are present due to the worldwide economic crisis, fortunes will be made.
But the qualifier is that you must choose wisely.
It is a current reality that American workers are competing with workers in every country in the world. Many of these workers are HAPPY to do the same work for one-tenth (or less) of your current wage!
For this reason – and many more economic factors – we are living in an era of unprecedented unemployment levels. The rates are often correlated to “The Great Depression” but that is not a fair comparison.
While the percentages of people who are unemployed may be similar to Depression levels, we live in a completely different world. The level of education, technology, and mobility are a hundred times more advanced that in the 1930’s. And yet, tens of millions of Americans are unemployed – or “underemployed” and working in jobs far below their education and experience. This is especially true of “Baby Boomers” who have very slim chances of matching their old jobs.
Robert Kiyosaki touches on this realityin his description of “The Cash Flow Quadrant”. He says ALL income earners fall into one of four categories, or four corners of “The Cash Flow Quadrant”.
The four divisions are:
Employee: These people are looking for a good job with benefits. They are also 100% at the mercy of their employers, who are at the mercy of global competition. The goal of every employee is to have some money left after paying all their expenses.
Self-Employed: These are small business owners and sole proprietors, characterized by “Mom and Pop” stores and service providers. Unfortunately, many displaced workers have tried to open a business only to find that they merely “bought” themselves a 100-hour per week job. They also quickly learn that when they stop working they stop earning.
Business owner: These people understand that maximum earning potential is only attainable by leveraging the efforts of many, many more. A business builder creates a “machine” that operates around the clock, without their direct input in every stage of the process.
One of the HUGE differences in the wealth creation potential of a business owner is the legal and ethical ability to record expenses …