Robert Kiyosaki, author of the bestselling Rich Dad Poor Dad book series, 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’ll show you why you need to build your own business and exactly what kind of business. But it’s not just about changing the kind 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 business that’s right for you, but for your business to grow, you’ll have to grow too.”
The premise of this book is that you can STILL experience success in business. Despite the “tough times” presented by the global economic crisis, fortunes will be made.
But the qualifier is that you have to 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 job for a tenth (or less) of their current wage!
For this reason, and many other economic factors, we are living in an era of unprecedented levels of unemployment. Rates are often correlated with “The Great Depression,” but that’s not a fair comparison.
While unemployment rates may be similar to depression levels, we live in a completely different world. The level of education, technology, and mobility is a hundred times more advanced than it was in the 1930s. And yet, tens of millions of Americans are unemployed or “underemployed” and working in jobs well below their education and experience. This is especially true of “Baby Boomers” who have very little chance of matching their old jobs.
Robert Kiyosaki touches on this reality in his description of “The Cash Flow Quadrant.” He says that EVERYONE who earns an income falls into one of the 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 each employee is to have some money left over after paying all their expenses.
Free-lancers: These are small business owners and sole proprietors, characterized by service providers and “mom and pop” shops. Unfortunately, many dislocated workers have tried to open a business only to find that they simply “bought” a 100-hour-a-week job. They also quickly learn that when they stop working, they stop earning.
Company owner: These people understand that maximum earning potential can only be achieved by leveraging the efforts of many, many others. A business builder creates a “machine” that runs 24 hours a day, without his direct involvement at every stage of the process.
One of the HUGE differences in a business owner’s wealth creation potential is the legal and ethical ability to record “pre-tax” expenses.
And the fourth quadrant is the investors. The Investor has achieved enough wealth that his money now “works” for him! This is the goal that all people strive for, if only to get to the point where they can one day “retire.” Unfortunately, today the vast majority of Americans will never be able to retire without drastically reducing their lifestyle.
According to Kiyosaki, entrepreneurs and investors represent less than 20% of the productive population. More than 80% of workers do not have the freedom to direct their own hours: they are tied to their job or their store.
Robert Kiyosaki advises that EVERYONE should aim to be a self-employed business owner. He then writes WHY Network Marketing is “The Business of the 21st Century” for the following reasons:
1. Network marketing is the easiest business model to transition from employee to business owner. You can also start part-time and transition to full-time. Also, the cost of entry is very low, usually only a few hundred dollars.
2. Network Marketing is a system that provides leaders who have a vested interest in YOUR success. These leaders, and the marketing systems available, ALSO provide extensive training to make you successful. In most cases, these training resources are available for FREE or at very little cost. Note: It is ALWAYS less expensive to buy the accumulated wisdom of successful people than to repeat their mistakes!
3. Network marketing provides the most effective means of promoting a product, that is, by using personal relationships to provide recommendations. (Today these recommendations extend online to thousands of “friends and followers”)
4. Network marketing leverages the efforts of dozens, hundreds, and even thousands of other people. All of these people are working on YOUR business, but they are also creating a residual income stream for you.
5. Network marketing provides almost limitless opportunities to increase your knowledge and develop your personal skills, making you more valuable as a leader and resource to others. It also puts you in the circle of influence of other leaders who are in the top 1% of income earners and opens up additional opportunities.
6. Network marketing is a scalable business. There are many avenues open to successful network marketers. All of these can be expanded to increase business, across the country or across the globe.
7. Network marketing creates not only wealth creation but also an asset. The business you build is a legacy. You can create a business that outlives you.
8. Network marketing is a business that generates residual income. It also creates multiple streams of income, unlike over 80% of workers who have one paycheck and are helpless when it’s over. Residual income means you earn even when you’re not “working” and can barely put it off! For these reasons, network marketing really has no income limit!
9. Network marketing has no educational prerequisites. You can even participate if you are overeducated! There are no barriers based on race, age, background, or any other factor that could make you “unemployed” in a typical job search. Today, hundreds are lining up for a job opening as a janitor. In network marketing, you can jump around all the hoops and get started right away.
10. Network marketing is perfectly positioned to take advantage of modern technologies. While the industry has been successful for decades using only face-to-face selling methods, these new technologies expand the opportunities exponentially. In particular, the growth of social media gives you access to thousands, even millions of people. It is also a fact that millions are looking for ways to increase their income at any time.
For ALL of these reasons, Robert Kiyosaki concludes that Network Marketing IS “The Business of the 21st Century.”