The Business of the 21st Century by Robert Kiyosaki
1. The Rules Have Changed
a. Worst economic cycle we have been through for many in their entire lives.
b. “The rampant decline in gainful employment is a ravaging epidemic.”
c. Wake up, this is not news. It took all of this for people to realize their jobs were at risk. which they have been all along.
d. Corporate America is a 20th Century dinosaur, trembling at the edge of extinction.
e. “If you think social security or the stock market will be your retirement, you also believe in the Easter Bunny.” We are in the Information Age not Industrial Age so we must change our thinking.
f. “You can take charge of your future only when you take control of your income source. You need your own business.”
2. The Good News: this is the best time to start your business
a. Microsoft and Disney were both started during a recession as did more than half of the companies making up the Dow Jones Industrial Average. Why? People get creative and get out of their comfort zones.
b. “72% of all adult Americans would rather work for themselves than for a job, and 67% think about quitting their jobs regularly or constantly.” Fresno research firm Decipher
c. Paul Zane Pilzer said old thinking is get a job; too risky to start your own business. New thinking is totally opposite!
d. Being an employee is anything but normal. It is a recent phenomenon. starting in Industrial Age.
e. Thus, the myth of the 40 year plan. The US Federal Reserve statistic shows the average household net worth for entrepreneurs is FIVE TIMES that of conventional employees.
3. Where do you live?
a. As Stephen Covey says, what is your ladder leaning against? Take time to examine where you are now and if it is where you want.
b. Examine where you are in the Cash Flow Quadrants.
c. Changing jobs is not changing quadrants.
d. Your quadrant also reflects your mind set. your core financial values.
1) E Quad: I am looking for a safe secure job with good pay and excellent benefits.
2) S Quad: If you want something done right, do it yourself.
3) B Quad: I am looking for the best people to join my team.
4) I Quad: What’s my return on investment.
e. If you want to be wealthy, you must change your “address.”
4. Why do so many fail to pursue their dream of becoming an entrepreneur?
a. “It takes courage to discover, develop and donate your genius to the world.”
b. Your mind is infinite; it’s your doubts that limit you. Ayn Rand “Wealth is the product of man’s capacity to think.”
c. One reason you should want to create your own business is to gain your dignity back.
d. So changing quads is not enough. you need the skills, the training and the mindset.
5. Take Control of your life
a. It does not take money, intelligence, degrees, social status, hard work, etc. It takes a dream, a lot of determination, a willingness to learn quickly, and an understanding of which sector you are in.
b. “We found that one business model stood out from the rest.”
1) It creates passive income.
2) Requires little cash investment to start up (with 90% failure rate in first year, why invest a lot!)
3) Very low overhead
4) Can be operated on part-time basis until can leave job Called network marketing and that’s what the rest of the book is about.
6. It’s not about income: it’s about building an asset that generates income
a. Asset versus liability is determined by cash flow. If it doesn’t make you money it is a liability.
b. A job is not an asset. When you work at a job you are building an asset. it is just not yours! Why spend all of your years working away at not building an asset. Add the fact that your income s an employee is taxed at the highest rate.
c. Networking: it is not about selling, or building an income source. It is about building a network.
7. Building a Networking Business is Building 8 Assets
1) A real-world business education
School does not teach you how to be successful in life, or understand finances. You need 3 types of education: school, professional and financial. MLM teaches you how to have money work for you versus you work for money.
B quadrant also requires you to develop these skills like no other quad:
Setting goals, Organizing a Plan of Action, Setting your Agenda, Managing your Time, and Executing a Clear Sequence of Productive Actions.
Tax advantages and Life Skills are two more critical areas of education gained in MLM.
2) A profitable path of self-development
this business is about changing “who you are” for your business to grow you will need to grow as well. His riches to rags experience taught him how to be a millionaire. Each of us has a quitter and a loser in us. The reason most don’t achieve their goals in life is because they let the loser inside dominate. MLM supports the winner in you stand up and be counted! “Most people don’t have the ability to keep going, to handle disappointment and never lose sight of the visions of where they are going. That is thinking like an entrepreneur and that’s the single most important attribute you can learn from building your own network marketing business.”
3) A circle of friends who share your dreams and values
- Your current circle of friends may be a main reason you are being held back. Your friends in the E quadrant?
- Do they have different values (love safety and security; fear risk)?
- Do they see you in network marketing as nuts, or a sucker or making a huge mistake?
This has nothing to do with network marketing rather you are making a major shift in your life out of the leftside quadrants. Joining an MLM company gives you this group of people. a group that come from bold and strength and belief in themselves, in the future; willing to take risks, build teams and live their dreams together. John Kalench “You can’t fly with the eagles when you hang out with the turkeys.”
4) The power of your own network
“The power is not in the product; the power is in the network. If you want to be rich the best strategy is to find a way to build a strong, viable, growing network.” Metcalfe (founder of 3Com)
Metcalfe’s law: V=N2
This law means that as a network adds users, the value increases geometrically.
Industrial Age is about a controlling, central authority, power. Today, the business model is changing to a network and the networker can experience the power of Metcalfe’s law: massive leverage.
MLM is the fastest growing business model today but people don’t see it. they see a product they see an income stream but they miss the true value:the network.
Your job in network marketing is to communicate information, tell a great story and build a network. It is NOT TO SELL A PRODUCT.
5) A duplicable, fully scalable business
The key to success is not what you can do. it is what you can duplicate. Great salesmen usually fail. because they do not build others to be able to do what they can do. No duplication. People who try to be ingenious about networking fail.that is S quadrant thinking. You want to build your business in a way that virtually anyone can
duplicate. MLM used to be about great presenters. Not everyone can be a great presenter, but tools today give that capability. Today, no one needs to be a prolific presenter. learn how to master
the tools and you will build a fully scalable business. Your job is the human connection part. connect and invite.
6) Incomparable Leadership skills
While many talk of “freedom, living your dreams, more time with family,” few people instill enough trust and inspiration to cause others to pursue those words and phrases.
Leadership: the ability to speak directly to other people’s spirits.
“All the other business skills are important ingredients. Leadership is the force that makes it all come together. Leadership is what builds great businesses.“
Great leaders are great storytellers.
A business that forgets how to tell its story is soon out of business. Leadership in B quad demands different skills. You must become a terrific storyteller. communication skills rank at the top.
“Network marketing tends to develop the type of leader who influences others by being a great teacher, teaching others to fulfill their life’s dreams by teaching others to go for their dreams.”
The four elements of leadership:
- physical and
Traditional training for employees: only work on mental
7) A mechanism for genuine wealth creation
Grasp the difference between money and wealth. Why does the lottery winner get $3 million but 2 years later is broke again? Because he has no idea about wealth.
Wealth is not measured by income. it is measured by time: if you stopped working today, how long could you survive at your current lifestyle?
Rich people work not for income but rather to build wealth. Kiyosaki’s 4 step process to Financial Freedom:
- (1) Build a business (takes 2-5 years)
- (2) Reinvest in your Business Tools, training, traveling…too many networkers start making money and then quit their other jobs. All you have done is replace your job with another. This is a mistake.
- (3) Invest in Real Estate Idea: use income to buy other income producing assets
- (4) Let your assets buy luxuries
8) Big dreams and the capacity to live them
MLM supports people to dream BIG. Other businesses temper your dreams. Instead of “I can’t afford it,” it becomes “How can I afford it?”
When you get in the habit of asking the second question, you train yourself to dream bigger and bigger. Look at your naysayers. notice that with virtually all of them they have already given up on their dreams.
Five kinds of dreamers:
- (1) those who dream in the past Believe their greatest achievements are behind them…they are no longer living. To get back into life, rekindle a dream.
- (2) those who only dream small dreams Because they only have limited confidence…but then rarely even reach their small dreams. They rather live small.
- (3) those who achieve a dream and then get bored Time for a new dream!
- (4) those who dream big dreams, but with no plan on how to go about achieving them, so end up with nothing. Typically because they try to do it alone. Find a team. rarely does anyone do it alone.
- (5) those who dream big, achieve those dreams, and go on to dream even bigger dreams. Broke is a temporary condition. Poor is a state of mind. Thoreau in Walden, “I learned this, at least by my experiment: that if one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours.”
8. Network Marketing is a business where women excel
a. “The supporting, nurturing, coaching relationship of a network marketing sponsor to her growing network of apprentice networkers is the kind of relationship and interaction in which women excel.”
- 47% of women over 50 are single
- Women’s retirement income is less than men’s because they on the average spend 14.7 years away form the workforce while men 1.6 years.
- Women are expected to live an average of 7-10 years longer than men so they must take care of themselves those extra years. With baby boomers, married women are predicted to outlive their husbands by up to fifteen years.
- Of the elderly living in poverty, 75% are women.
- Approximately 7 out of 10 women will at some time live in poverty.
c. Women must take control of their finances today more than ever.
d. Networking is totally suited as a woman’s business due to its flexibility.
e. To be successful in your life, you have to really look at your life and ask “What is it that is so meaningful to me that I have to have it in
For Kim, it was her burning desire to be in business for herself, not answer to a boss, and be in control of her finances. It took her 10 years. For each woman, it is something unique to you. find it and don’t let it go!
9. Your future starts NOW
a. Choose wisely When choosing a company,
- 1) What are their training/educational commitments both giving you a plan and training skills in leadership/self development.
- 2) Quality and uniqueness of product (“buzz”; create passion).
- 3) Must have a comp plan that allows you to create income.
- 4) Who is running the ship? Need visionary.
b. What it takes
What it does not take:
education, a degree, great salesman, quit your job, good with numbers
What it takes:
- Be honest with yourself. am I willing to go outside my comfort zone?
- Are you highly self-motivated?
- Do I have the right attitude?
- Are you teachable, ready and willing to grow?
Time.it is the ones in E and S quad who most often get caught up in the get rich quick schemes
Your MLM company won’t fire you so don’t fire
Use the Five year plan rule: to master anything it takes 10,000 hours (5 years at 8 hours per day/5 per week. Give yourself a chance to unlearn
c. Living the life
It is not money, gold stocks etc. that makes you rich; it is what you know about money, gold, stocks, real estate that makes you rich. “Ultimately it is your financial intelligence that
makes you rich.”
Three ways to live:
- 1) Living in Fear…”not enough money”
- 2) Living in Anger and Frustration…working everyday and angry you “have to work”
- 3) Living in joy, peace and contentment having enough money/income streams to never have to even think about whether it is coming in or not.
d. MLM is an equal opportunity business
Wealth is not a zero sum game. it can be for everyone. It is not about holding some down, it is not a limited resource.
“By its very nature and design, network marketing is a strikingly fair, democratic, socially responsible system of
The method you choose to become rich, by greed or by abundance and generosity, is really just a reflection of the core values inside you. Network marketing is not for the greedy since it is all about supporting others to achieve their dreams.
“Today, many network marketing companies are spreading peace through economic opportunity all over the world.”
Traditional work model: only works where people have money and can buy. Network marketing gives the opportunity to all, no matter what their plight is today.
“It is time that people all over the world had an equal opportunity to enjoy a rich and abundant life, rather than spend their lives working hard only to make the rich richer.”