Recently I read a book named "The Business of the 21st Century " authored by Robert T. Kiyosaki with John Fleming and Kim Kiyosaki. The book is how Kiyosaki got to know about this brilliant concept of NETWORK MARKETING and why it can be called The Business of the 21st century. I have tried to give you all the detailed write of the book. The book is divided into 3 parts and consists of 21 Chapters.
Part 1 Take Control of your future
This Part is like setting the ground for showing the need and importance of a new business model, entrepreneur’s attitude and let readers curious about – NETWORK MARKETING.
Chapter 1
Taking the example of the effect on livelihood and market conditions during the Great Depression and the fable of ant and grasshopper. Author Robert Kiyosaki explains that one cannot depend on regular jobs for employment and livelihood. If one does accept this life as his poor dad used to do, one is living the life of an ant. There is a growing number of people working even after 65 to meet their daily needs. Being like a grasshopper isn’t a good idea as well.
In the end, one cannot blame others (Govt, administration, industries, boss, business heads, companies, etc.) for one’s condition, it is always “you” responsible for your present and future state. Time has changed so we have to change accordingly.
Chapter 2
In this chapter, Kiyosaki asserts that during an economic crisis and during non-favorable market conditions, entrepreneurs arise. Entrepreneurs create and innovate better products and think out of the box which helps them grow.
Chapter 3
Here, the author lays down his understanding of the quality and quantity of money. According to him, the Quality of money earned is more important than the quality of money. He is also given insights of his other book
“Cashflow Quadrant” where he divides the cash income into four Quadrants namely E, S, B, I
E- EMPLOYEES -Regular employment, a poor dad concept, the old school way
S- SMALL BUSINESS-you are own boss, thankless and difficult place to live, slave of your own enterprise
B- BUSINESS OWNER- you work for S to earn but B works for you to give to the outcome.
I- INVESTOR- last stage of cash flow which mostly comprise of his Rich Dad’s teachings.
He further clears a common misunderstanding that changing jobs is not changing quadrant. In the last lines, he leaves readers with two questions to introspect and answer:
1. Which Quadrant you live
2. Which Quadrant you want to live in?
Chapter 4
This chapter explains the core financial values of each quadrant.
E- security, low risk, want for overtime, no. of holidays
S- independence, not a good leader-a good doer, the problem of being smartest in the group, unable to work in a group, do it yourself attitude
B-look for best people to join the team can stop working still money will continue to come
I- return on investment
Chapter 5
It teaches and gives an insight into the mindset and attitude of an entrepreneur. Kiyosaki relates this with the example of Maserati in which he says that letting a farmer drive a Maserati won’t do good until he is trained. Likewise, to think like an entrepreneur financially one needs to be self-determined.
Chapter 6
He describes the fact that hard work won’t make one rich. He illustrates an example of a franchise like McDonald’s and Subway, the cost of setting up a franchise, and the risk of losing all of the cash used in the Business. He even tells about the mistake his poor dad did years back. However, the concept of Passive income is the main highlight if the chapter. Passive income- which one earns even you are not working, the money you used works for you. This chapter is the start of the introduction of a business model on which the whole book is based – Network Marketing. Network marketing generates passive income which requires little cash to start with.
Part 2 One Business-8 wealth-building assets
Chapter 7
In this Chapter, Kiyosaki tells his understanding and perception of network marketing. For further clarity and understanding, he invites John Fleming, who has about forty years of experience in network marketing. The rest of Part 2 is a two-way conversation between John and Kiyosaki, enlightening the readers about Network Marketing.
Chapter 8
Building assets is important than income. An asset is something that once builds works for you to generate income. The author talks about the biggest misconception about network marketing (NM) - it is a selling business. A successful business is not equal to good in sales. NM is not about making a material product, it is about building a network –an army of people who represent the same product and services to share others. Turning people into your assets so that they work and generate income-passive income.
Assets have been classified into 8 categories. The following chapters explain to them all.
Chapter 9-16
Asset#1 Practical Business Education
3 kinds of Education
Scholastic- simply the school education to write, read, and do the math.
Professional- prepares to live in E & S quadrants
Financial- learn to have money work for you rather than you work for money. Can give one the upper class of E quadrant but still, it is the E quadrant.
Skills required to enter the B quadrant- how to plan a financial plan, balance a checkbook, read an annual report.
Tax advantages of starting a network marketing business at the home.
Some skills in which real-world network marketing teaches- attitude for success, dressing for success, overcoming fears and doubts, communication skills, people skills, overcoming the fear of rejection, investing skills, practical goal setting, time management, etc.
Asset#2 Personal Development
Understanding the difference between a Quitter and a Loser. Each one has a winner and loser within us. Network marketing helps us bring the winner inside into our default nature
Asset#3 Social Circle
Make friends who share the same dreams and values as you do, as their positive vibe will help you achieve your dreams. The social circle we live in has an adverse effect on our thinking and working. Having a circle of friends with the same attitude towards life and the aim to shift to the B quadrant is compared to an asset.
Asset#4 Power of your own Network
Product is not power, but the power lies in the network who endorse that product. Young Edison example- after advancing electrical bulbs, he first invested in making electrical networks and relays all over London to promote his product. Bill Gates- didn’t build computers, he made the operating system without which computer won't operate.
Metcalfe’s Law of the value of the network
V=N2 (value of network depends on the number of users)
Asset#5 Duplicable, Fully scalable Business
Diff between Sales & Network Marketing – Sale is about what you can do however, network marketing is what you can duplicate.
Scalability-A business that can operate at every scale. It defines the power of a business. Example of Mc Donald’s- designing a business model that can duplicated and multiplied without direct participation.
Role of Network Marketer- invite, present, follow-up, train, and share one’s leadership skills.
Asset#6 Incomparable Leadership skills
Leadership makes businesses. Money does not flow in businesses with good products. However, it flows and grows in businesses with great leaders.
Traditional schools teach us to be a good employer but NM teaches us to be a great leader.
NM develops a leader in you, probably a special type of leader who influences others u being a great teacher and fulfill their dreams. Leaders inspire others to find financial bounty without hurting others.
4 elements of Leaderships-Mental, Emotional, Spiritual, Physical.
Asset#7 Genuine Wealth Creation
The difference in the concept of Wealth and money.
Wealth is the ability to survive ho how many days without working. It is a measurement of time.
4 Step to Financial Freedom
1. Build a business
2. Reinvest in your business
3. Invest in Real estate
4. Let your assets buy luxuries
Asset#8 Big Dreams and Capacity to live them
Instead of saying I can’t afford it is easy, but think, how can I afford it and act accordingly. This is what a winner attitude will inculcated through networking.
5 kinds of dreamers:
1. Dream in the past
2. Small dreamers
3. Achieved a dream and got bored
4. Big dream with No plan
5. Big dreams, achieve those dreams and dream bigger
Chapter 17
How women can start NM as a side business and help improve the livelihood of themselves and their families. This Chapter is written by Kim Kiyosaki, wife of Robert Kiyosaki, the lead author of this book. This chapter tries to encourage women to be independent financially by adopting NM. She provides 6 reasons to make women readers understand the necessity to indulge in NM.
Part 3
This section explains about the Prerequisites of starting an NM business
Chapter 18
Selection if an NM company is the most important starting step. Don’t think about Product, think about the real-world business education and personal development
This chapter answers 5 most important questions which must be answered by an aspiring NM entrepreneur about joining an NM Company
1. Who is running the business?
2. Is it a proven approach to action?
3. Is personal development and business skills both taught?
4. Is the product line go with your passion?
Chapter 19
Before knowing what it takes to build an NM business. Let’s see what it doesn’t take.
1. No MBA or high powdered business background.
2. Don’t have to be great in Sales
3. Don’t quit Job
4. No need for large Cash
5. No need to be a genius in negotiation
What it takes:
1. Honest to oneself
2. Right attitude
3. Real growth
4. Time-consuming
Chapter 20
The author tells that to live in a B quadrant and then upgrade in the I quadrant, one needs to have good financial knowledge. It is a good financial knowledge that makes someone rich. There are a few points that are discussed in this chapter.
1. Knowing how to make more money
2. Know how to protect your money
3. Know how to budget your money
4. Know how to leverage your money
From the author’s experience, there are 3 ways people live- living in fear, living in anger and frustration, and finally living with joy, peace, and contentment.
Chapter 21
In this final chapter, the author concludes the book urging readers to invest in NM. He emphasizes that NM is the business of the 21st century. It is a democratic, fair, and socially responsible wealth-building instrument. According to the author, building a business with a highly skilled craftsman is not required, one can live in the B quadrant by making networks and helping normally skilled people to work and build an empire using NM. He takes examples of Henry Ford, who started his automobile company, not by appointing highly skilled craftsman and choosing high-end luxury vehicle models rather he chose simple design vehicles which appeal to the masses and is within their reach and fulfill their expectations.
Thus, in the 21st century if you want to live big, and fulfill your dreams, create a network, expand it, build a business by helping others fulfill their dreams. If people in your network could fulfill their dreams through your network, they will fulfill your dream too. The human investment will then work as an asset which no otherworldly possession can overcome.
To download free pdf of the book click on the link below
Posts
Wow....
ReplyDelete