Are You Starting a Business? Understand the Cashflow Quadrant

Starting a business or even raising a family, be it in getting an education, having an employment, is all for a purpose. Everyone in life is motivated by something, all life’s pursuit. We might not spend most of our time thinking about this purpose, but in our daily work, we have that innate knowledge that the small accomplishments from today’s efforts add up to something bigger that we are building for tomorrow. This purpose is what drives our lives, and keeps us going in a race against time.

But for many people, they end up selling their own precious time in exchange for money because of the very limited idea to gain financial freedom and how to be successful in business, make the most excellent use of their time, and achieve greater results.

What gives us purpose might differ from one individual to another, but one thing is common among all men and women around the world, we all want to attain success in our different pursuits.

Importance of Cashflow Quadrant When Starting a Business 

If you are starting a business it is important to understand between working for money and when money is working for you. Interestingly, Robert Kiyosaki in his book titled the Cashflow Quadrant puts everybody from all walks of life into four basic groups. And regardless of where you find yourself right now, you fall into one of these groups.

Kiyosaki calls these groups ‘Quadrants’ and they include; The Employee E, Self employed S, Business owner B and the Investor I. This is broadly divided into the left (E and S) and right sides of the quadrant (B and I).

All pursuits in life lead you into one of these quadrants. Because right now, it is either you are working for someone (E), or you are spending all your time working in your job - you own (S). The people on the left side of the cashflow quadrant are working for money.

Then there is the other side of the quadrant, where you have the people who own working businesses (B), with minimum 500 employees and people who invest their money into the business that generates passive income for them (I). The people on the right side of the cashflow quadrant understand how to be successful in business because money works for them.

For example, the person who rushes out of the house by 5 a.m in the morning in order to beat the traffic on his way to work where he will spend the rest of his day only to return back home by 8 p.m at night, all tired and exhausted as he awaits a salary after 30 tedious days.

Another person also wakes up early, if not earlier, to see that he joins up with his employees to work tirelessly on the job that he owns. Both examples above are people on the same left side of the quadrant.

Here are success stories of people like Aliko Dangote who started out selling petty products at his shop, and then moved his business from the left quadrant to the right quadrant by setting up the Dangote Group of businesses that today brings him returns, which now puts him as the richest man in Africa.

If you are starting a business the success stories of Bill Gates, Mark Zuckerberg, Ashish Thakkar should interest you, one thing is common with these men, they have established a system that makes passive income for them by choosing to move from the left to the right side of the cashflow quadrant. The money keeps coming in even while they are asleep.

As you are about starting a business today you can also make the same choice by choosing passive income overworking and stressing out, selling your precious time before you can get meagre returns. You can do that by choosing to join a network marketing business, which is one of the easiest ways to transit from the left to the right side of the cashflow quadrant.

In network marketing, you are investing in a working system that has been established and will be kept running by others. The money will always keep coming whether you are at home, in front of your computer or spending quality time with your family and friends.

Which side of the quadrant are you in now? Where do you want to be? Why not make that move now that you are starting a business!

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Olabode Oruku is the chief executive officer of Oruku Consultancy Services. The company offers proven business idea, online and offline marketing consultancy services to small business owners.

You can reach me on mobile phone 08033205456 or  Click Here To Send A Mail.

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