Shifting our mindset from an employee to a business owner is necessary if you are considering starting a part-time business from home. To break this down, we reference Robert Kiyosaki’s work in The Business of the 21st Century by explaining his 4 cash flow quadrants. These quadrants define how one makes his or her money. Kiyosaki says “each is different from the other, and each defines and determines a very different lifestyle, regardless of the amount of cash you earn.
An employee earns money by holding a job and working for someone else or a company. The self-employed are people who earn money working for themselves as solo-preneurs. A business owner owns a large business that generates money from employees or a team. Investors earn money from money generating more money.
Which quadrant do you live in? Where do you receive the majority of your income from?
Let’s go a little deeper here for a second. The overwhelming majority of people learn, live, love and leave this life entirely within the E-quandrant. The educational system and our culture trains us from a young age to live that way. You know this philosophy…go to school, get good grades and get a job with benefits at a great company. However, the corporate myth is coming to an end. People are getting tired of climbing the corporate ladder only to find out the view doesn’t look so good!
Let’s keep moving here….what about the S-quadrant? It is where most of us need to start… but Kiyosaki warns us not to fall into the trap of staying there. The only reason to get into the S-quadrant is to provide a path to the B-quadrant. Otherwise, all you are really doing is giving yourself another job. And when you screw up, you can’t blame the boss!
With an S-business…we work for the business. With a B-business…the business works for us! That is how millions of people are prospering with a part-time online business from home. They use a system that sets them up for a B-quadrant business that can generate income independently of the owner’s full participation.
Most people live in the quadrant tied to their core financial values. These values either attract us or repel from the other quadrants. It’s not as simple as filling out a change of address form at the post office. Kiyosaki says we must not only be prepared to change “what we do”…but we must also be prepared to change “who are and how we think”.
By the way…living in one quadrant doesn’t guarantee financial success…we still need a solid strategy!
The E-quadrant core value is security. You will hear someone in that quadrant say or ask:
“I’m looking for a good job with benefits.”
“How much do we get for overtime?”
“How many paid holidays do we get?”
The S-quadrant core value is independence. You will them say things like:
“If you want something done right, do it yourself.” These people often have great technical or management skills but lack the ability to work well with or lead others.
The B-quadrant core value is wealth-building. People in this quadrant will say things like: “I’m looking for the best people to join me.” They seek out to build a network with people that are often smarter, more experienced & more capable than they are to leverage opportunities.
The I-quadrant core value is financial freedom and you will hear I-quadrant people often ask questions like: “What is the return on my investment?” The investor loves the idea of his money working instead of him or her working.
Perhaps the greatest strength you have by starting a part-time business from home on your own time is what Kiyosaki calls having a “genuine asset for building wealth”.
You may already know this…but the typical million dollar+ lottery winner winds up broke within just 3 years after hitting it big. This is because having a sudden windfall of money doesn’t mean that a person understands the concept of wealth.
Hopefully by now I have confirmed any suspicions you may have had about trading time for money as a path to wealth won’t work. But it is also important not to build a home-based business just to create more income to spend because, while you may be happy in the short term with this new found source of revenue, you will be disappointed in the end if you don’t treat it more like a wealth building asset. A B-quadrant dweller understands that money and wealth are not the same thing. Wealth is not measured by the amount of income. It is measured in time! To be precise…the number of days you could survive without working. Have you ever asked yourself how long you could make it without working?
The power is in your hands to never worry about your long term financial future! Kiyosaki gives it to us in a 4-step plan:
- Build a business—home based businesses usually only require a small investment
- Reinvest in your business—reinvest some money, but also time and effort
- Invest in assets that earn you money—like real estate
- Let your assets by your luxuries
You may have wanted to hear about building a part-time business from home to find a quick and easy path to becoming rich. We don’t believe in that here. But we do believe in Kiyosaki’s approach. And he points out the ultimate luxury that we should want to buy is our time!
Are you living in the your most desired quadrant? If you were able to make a shift from one to the next tell us how you did it. Share your thoughts in the comments below!”