The Difference Between Small and Big Businesses of Poor Dad and Rich Dad

The Cashflow Quadrant by Robert Kiyosaki has made us aware of the S and B quadrants of cashflow 101 in business. They refer to the left and right sides of the cashflow game, as taught by poor dad and rich dad respectively. As I have been on both sides with small traditional and big 21st century business, I consider myself best to explain the functional differences in working and mindset between the two.

To begin, Kiyosaki asserts any organization with more than 500 individuals must necessarily be managed with a system, making it a B-quadrant business. Else it would die. The talent of the bosses is seen in developing the system. And this is the reason organizations like KFC, DHL, Amway, Dell and Suzlon (to mention a few) are driven on systems and keep expanding. However systems are not necessarily evolved from scratch. Often they are for sale.

DHL gave Blue Dart more than a few million dollars to buy their system. Google has recently acquired FeedBurner to own a blog syndication system and so on. At an a personal plane too, Kiyosaki says, we can purchase systems using personal franchising. Hence we develop into veritable B-quadrant business persons by altering in our thinking… as the system is already franchised. As a consequence the basis is ready to put together a great business.

So what are the differences in thinking?

At first, B-quadrant business owners nurture definite dreams. They know why they are in business. What they wish to achieve. What contribution they wish to make to society. What is their purpose larger than themselves. Naturally much of this is evolved step by step, but they do appreciate from the beginning that a ‘vision statement’ will be the cornerstone of their business. If not, they will be managing out of the S-quadrant continually.

Next, B-quadrant business persons are in no way excuse oriented. They are oriented by dreams. You will never have them offer you an excuse for things to go wrong. Which in turn, makes them splendid leaders. While S-quadrants ‘manage’ situations, B-quadrants lead the way through them. Leadership is a important B-quadrant attribute, which rises from the focus on vision.

Yet another aspect of mindset is thinking ‘leverage’. While the S-quadrant is thrilled to be the expert and does stuff on his own for his business, the B-quadrant always looks for a way to pass on business processes to a system. This is evident in the observation made by the world’s first billionaire, J Paul Ghetty, “I would rather a hundred people do one percent of the work than I do a hundred percent of it.” Henry Ford expressed a similar mindset on the lines, “I don’t need to know how things are done. I need to know the people who know how things are done. I focus on ‘why’ they need to be done.”

Without ado, Robert Kiyosaki says, “Poor people work, Rich people network.” And this is a fourth aspect. Whatever their business, B-quadrants network and associate with other B-quadrant people on a win-win basis. S-quadrants operate from a win-lose paradigm. Networking is about helping others to get what they want. Working is about getting others to accept what you have. Quite naturally therefore, the S-quadrant is competitive while the B-quadrant is collaborative. This is also due to the fact that there are less than 10% of the world’s people in the B-quadrant and more than 90% of the world’s wealth is in their control.

Fifth and final, as Kiyosaki opines in the opening pages of Rich Dad Poor Dad, “The rich don’t work for money”. B-quadrants work to create assets and that makes money work for them. The S-quadrants do all they can till they get paid for their labor; and consequently stay poor.

Thus, in case you require to transition from small to big business thinking, explore any network marketing opportunity. The working systems will be privately franchised and you will be taught how to acquire the mindset using a proven training system. Visit here for info you can use http://www.doonlinebusiness.info/2009/12/14/network-marketing-opportunity/