Robert Kiyosaki's Cashflow Quadrant - ES Quadrants vs BI Quadrants - Making the Move in Three Steps

Robert Kiyosaki's Cashflow Quadrant - ES Quadrants vs BI Quadrants - Making the Move in Three Steps

Robert Kiyosakihas introducedseveral greattools, which allowpeople togo through a contextual overhaulabout the way they look at making money and entrepreneurship.One of these tools is the Cashflow Quadrant.

For those of you who may not know the Cashflow Quadrant has two-perpendicular lines that cross in the middle, which create four boxes or quadrants. Each quadrant contains a letter. Moving counter clockwise starting in the upper-left:

"E" stands for Employee

"S" stands for Self-Employed

"B" stands for Business Owner

"I" stands for Investor

The left side of the quadrant contains the E & S quadrants. These two groups are highly taxed and are not able to leverage their time or income. The E & S quadrants income and time are very linear. In the case of the employee they work an hour and get paid for an hour. In the case of the Self-Employed they may be able to bill a high dollar amount for their time, but it is still their time that makes them money.

To the contrary, the B & I Quadrant's income and time are not linear. The people in these quadrants have already created the system or placed the investment that continues to pay them long after the work to do so has been completed.

Many would-be entrepreneurs dream of the day when they can live the life of a self employed person. They dream of the day when they can say, "I am the master of my own domain," this is their cry. But once they become self employed they begin to realize that being the one responsible for all decisions ultimately pulls them in different directions and they aren't able to get much of anything accomplished.

Many current self-employed S Quadrant people long for the day when they can move their business from the S side of the Cashflow Quadrant to the B Quadrant. But for both these situations the B quadrant remains a carrot that is always just beyond their reach.

What these entrepreneurs don't understand is that the contextual foundation of a B business must be laid years before the transition is made. Let me give you an example:

I know a man who saw his role inside his business as creating systems systems that would allow his employees to work harder and more efficiently thereby creating him more income.

After years of streamlining his processes and creating better systems he eventually came to live the life of the quintessential B Quadrant business owner Robert Kiyosaki talks about.

Every Monday morning he flew his Gulf Stream jet from his ranch in Montana to the city where I live. He would land at his private hanger and drive his Jaguar to his office building to spend the day in board meetings. Later that night he would retire to what he called his "Monday home" which was a really nice house that overlooked a small lake.

On Tuesday morning he would get up and fly his jet back to his ranch in Montana or he would fly to the San Francisco bay area where he kept his yacht moored. The rest of the week he would sail up and down the coast of California and Mexico and sometimes sail up the Inside Passage to Alaska.

This B Quadrant business owner was able to live this lifestyle knowing that his CEO was watching out for his business in his stead. This gentleman knew that once Monday rolled around he'd go back to his business to find everything well and more profitable than the week before.

Now after hearing this, many self-employed S Quadrant's are shaking their heads in disbelief. That's impossible! How could I ever get my business to that point?

Well, it comes down to a few things:

Thinking Bigger

Utilizing OPT & OPM (Other Peoples' Time & Other Peoples' Money)

Having a great Team working beside you

Through continual bigger thinking, utilizing Other People's Time and Other People's Money in order to help finance continued expansion, and having a great team guiding you through the process you too can live life on the B and I side of the Cashflow Quadrant.

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