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Again, some great points, Dien. See comments below.
> To add to what I wrote earlier....
> I think I only realized these lessons when I
> read one of those "Rich Dad Poor
> Dad" books by Robert Kiyosaki.... (I
> don't remember which one right now, they've
> kind of all blended into a whole in my
> mind.... :) )
** The one you're referring to is the "Cash Flow Quadrant." In my opinion, this book is like "Rich Dad, Poor Dad," on steroids!
My former business partner is actually good friends with Robert and interviewed him on her internationally syndicated TV show. Every time I think I have a solid grasp of his theories, he comes forth with another pearl of wisdom. A true genius, and I could not agree more that children should be educated about money from a very young age...
> He writes about the difference in being
> SELF-EMPLOYED versus being a BUSINESS OWNER.
> The difference, as he puts it, is that being
> SELF-EMPLOYED means that you stop making
> money when you stop working. But if you're a
> BUSINESS OWNER, you keep making money, even
> when you stop working.
> For example, doctors, lawyers, these people
> are all SELF-EMPLOYED. If a doctor stops
> working, he stops making money. This is true
> of most experts who are selling their
> expertise.... There may be exceptions (but
> I'd have to think about it)....
> However, if you are a BUSINESS OWNER, you
> continue to make money when you stop
> working. In this definition, for example,
> owning a house which you rent out makes you
> a business owner -- the cash keeps flowing
> in (from the rent money), even if you don't
> work at it. (You can outsource everything,
> and let a real estate agent handle the
> tenants.... If you bought it at a good
> enough price, you can STILL make profits.
> While I don't do this myself, a good friend
> of mine does this, and he's now looking to
> buy his third house....)
> Anyway, just thought I'd add that little
> note to round out what I wrote before.... :)
** You've hit the nail on the head. And I can tell that you're considering how to best implement the Business Owner concept into your own life, with your understandable concern of trading time for money.
Kiyosaki boils the entire concept of leverage and true business ownership down to the following question:
"If you left your business for a full year, would it be larger when you come back than when you left it?
This is a very powerful gut check for those of us who 'think' our business is automated, when it may not be fully so.
On a final note, one of the most common misconceptions I see propogating on the Net is that you have to have an information product or digitally delivered product if you wish to have an automated business. While these are indeed great models, and many people achieve great success with them, by no means are they the only option.
For example, one division of my company -- http://www.SearchEngineWebPromotion.com -- provides guaranteed Top-20 search engine placement service.
While we do offer monthly payment options to make it easier on our clients' cash flow situations, the total contract ranges from $1,800 to $2,982. I strongly prefer these 'high-ticket' sales because you don't have to sell hundreds or thousands of units to create a very lucrative revenue stream.
But more importantly, for MY intents and purposes, this division of the company runs exactly as a $39 ebook or info product. Reason being, other people in my company handle every single aspect of providing the service, from start to finish. My focus is on business growth, deal making, traffic generation, etc. The same exact things that digital business owners focus on.
Anyway, I hope that this has opened the spectrum for all of your own entrepreneurial endeavors!!
All the best,
A Highly Profitable, Automated Service Business...
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