E/S vs. B/I, or Making the Leap

[Wreck]

Howdy-

I was reading this post, which linked to this video, which got me to thinking about Kiyosaki's "Cashflow Quadrant."

It's been a while since I read it, so I may get something wrong, but what you have is a box like this:

EB
SI

E = Employed
S = Self-employed
B = Business owner
I = Investor

What you want to do is move from the left side of the box, the Employed/Self-employed, to the right side of the box, the Business owner/Investor.

I can think of handfuls of things to do to become self-employed, but not too many ideas for starting a business. And the few ideas I do have, I have no idea where to start.

Would it be as simple as using a book to develop a business plan, and then to just go through the plan step by step? A find investors (or a loan) for start-up capitol?

Thanks

[alexb5784]

Getting a book to develop a business plan is a good idea. But in real life, you will do many things that aren't even in your plan. But at least a plan will give you an idea of where you want to go. It's better to know what your goals are, than be vague and "go with the flow". A lot of people fail because they don't have clear goals. They just do anything and take any client to pay their bills.

Start with the business plan book

Before you start your business, you need to look at how you manage your money now. If you can't manage the money you already have, then you need to improve your financial skills. When you work for yourself, you're going to have to learn how to keep yourself fed, even if you don't have any income coming in. The security of a paycheck is gone!

Also, there is no such thing as waiting until the right time to start a business. You can start it now, even if it's writing down a website plan or reading a small business book. Set the intention and go from there...

As far as loans are concerned, it really depends on the type of business you start. You could get money from family and friends, first of course. If you have a service business, it will be harder to get money from the bank. But if you have a business where you develop a product that is in demand or at least you can create demand for it, getting money will be easier. I'm guessing you live in the US. And if you borrow from the bank, make sure you have a good credit score. They will check your credit when you apply for a loan, even if it's a business loan.

As far as a the type of business to start, just do what you love or at least are interested in. I know this sounds fluffy, but it's true. Don't go into a business because you want to make a lot of money.

There are so many ways to make money. I found a way to make some extra cash a few hours ago, and that's by leasing ATM machines. Plus I met a woman earlier today who charges 300% more than I do. I just raised my consulting fees yesterday and looks like I'm gonna have to do it again when I get a new IT client

Also, I would use the Robert Kiyosaki books for motivation only. He gives a good introduction to self-employment principles, but when it comes to tactics and the how-to you need to look for other resources and books. And I believe he has a disclaimer in the front of all his books, where he states his books are for motivation only. I'm just saying this, because I don't think it's a good idea to use only his books to start your business. You will need MANY books and resources.

Now begin planning!

[Wreck]

Thanks for the reply.

Yes, I'm aware of the limited use of Kiyosaki for real business. I was just quoting the Quadrant from the video to which I referred. The video is Rich Shefren, who supposedly is much more respected from the business perspective.

I've experience doing freelance work on and off over the last 11 years, and have no doubt I could support myself going freelance full time. But I'm not wanting to be self-employed (I already have a job). I'm talking about starting/owning some sort of business. It's the difference of being an owner vs. an employee.

Those who've done this before seem to have the resources, credit, cash, and know-how. But if you have none of these, where do you get started?

Its kind of like getting started in a new career. You can't get a job without experience, but you can't get experience without a job.

It seems the best way to get this experience and make these contacts would be to become the personal assistant of someone who's already there. Either that, or grow from being self-employed to having one, to a few employees, then moving up and out to being only the owner.

I heard a "friend-of-a-friend" story where this guy put together a bid for a contract to do baggage handling around an airport. He was awarded the bid, put together the company, then he stepped back and the company did the work. I think his main thing was restaurants - buying and renovating old ones and making them profitable, then turning them over to his own management team to run for him. How do you do that? Put together a bid for a business you know nothing about, go out and put it together and have it work?

[alexb5784]

If you want to get into something you have no experience in, then maybe you need to shadow someone else to learn a few things.

It's possible to be successful in different businesses, but most people stick to what they know. But if you have a large amount of leverage, you can hire people to run several businesses for you. However, you better know that you can trust these people

Again, I don't think you need to wait until the time is right to start this business. All you need is your mouth and a business card. Heck, you can create a blog to promote your services or product. If you wait until you have enough money, you will never start. Start making plans right now as if you had the money you needed. You will be suprised at the amount of ideas that will come into your mind. If you have a plan and goals, people will have faith in you and be more willing to loan you money.

I understand you don't want to be an employee again, fine. But you've got to get started somewhere. In my last post, I wrote that I'm researching many ways to create passive income. I came up with 10 ideas today. I plan on meditating tonight and coming up with 10 more. Will all my ideas work? No, but a few might. One thing I'm researching is leasing ATM machines and putting them in resturants.
.
I believe that money can come easily to me, because I look for ways to serve other people and offer value.

You don't have to be present in the business in order to make money. You can create passive income, if you get creative. Look at Steve and all the other folks making money online

Ask yourself what one thing you can do today to get you closer to starting this business. Stop waiting and start doing. If you keep stalling, you will never get anywhere. And if you don't know what type of business you want to start, then create a list of what you do want. For example:

1. Do you want to work from home?
2. Do you want to invest your own money?
3. Do you want to work alone or have employees?
4. Do you want to buy an existing business?
5. Do you want to work part-time and run the business part-time?
6. Do you want an offline or online business?
7. Do you want to blah, blah, blah...


You're going to have to get uncomfortable and take some risk. So you might as well get started doing something you like or are at least willing to learn.

Good luck