From S quadrant to the B quadrant

Good to see you all. It's been a while. I've had some interesting things come up that prevented me from doing this live stream. But I'm happy to be back, Happy to be talking to you guys. And again, as we go through the next few minutes or however long we're on this call, if you have any questions, comments, just type in the comments, send them to me. I'll do my best to answer questions, but it's good to see you. It's good to be back after a week or two off. What I want to talk about today and open some discussion on is how do you go from the self employed section of your life, you know, if you're a solopreneur self employed to which is a somewhat of a form of slavery. Okay. I mean you can make a lot of money and do really well there. But to really move to the what we talk about in the cash flow quadrant at Rich dad, how do you go from the S to the B B as being a branded or a bigger business? Or if you're an employee, how do you get out of that rat race into being business for yourself? Either go straight to beach, straight to I as an investor, straight to S. And certainly there are no real books written on it other than what Robert's written about it. But it's been, it's kind of, it's my pet project here over the next six months to make this easier for people to do so rather than just knowing that I want to do it, I need to do it, how do I do it? Okay. So again, if you have comments, go ahead and comment in the, in the box and ask whatever questions you have. So I'm going to get started here. So if you understand cash flow quadrant, you understand we have E for employee, S for self employed, B for business owner, and I for investor. Right. So, and clearly we know that you make more money on the right side of that quadrant than on the left side. On the left side is about mostly about yourself. It's about compliance, it's about working for a boss, it's about trading, many times trading time for money if you're in business for yourself. And that's it. Whereas on the right side, bigger businesses, the wealthier people on the planet live, but Only less than 5% of the planet live on the right side of that quadrant, which are professional investors, property investors, commodities investors, stock investors, or business owners. And I would say the business owner has, as a business owner, a B business. You have the opportunity to make the most money, the most money however, it's also the highest risk. What I read the other day, 95% of most businesses that are started. I'm sorry, 50% of most businesses fail within the first three to five years. They just fail. They cease to exist. Now, what's interesting about that is, is that's not a great statistic. Okay? But what's even worse is that of those that fail, the 50% that fail, less than 20% of them fail because of their competition. That's right. So competition doesn't take you out of the game, which is something we've been speaking about for a long time. Mostly what takes people out of the game is lack of knowledge, inability to sell, inability to market, lack of cash flow. They run out of capital and resources and they just go away. So again, it's high risk, but if you have the knowledge and you know how to do, can be your best. Beth. Best bet to financial freedom. Sivram Krishnan from India. Good to see you today. Good to see you. So how do you do that? So let's start at the beginning. Let's say you love the cash flow quadrant. Hamid. Thank you. So let's say you're in the. So how many, you know, type in are you? Which quadrant are you currently in? That'll kind of help me a little bit. But for right now, let's assume that you're an employee. Right? You're working, got a. Got a decent job. I'm not sure what your status. Maybe you're even out of a job. Maybe your job went away during the pandemic. And depending where you are in the world, if you're in India or Thailand, Taiwan, many places of East Asia, the pandemic has come back again. So depending where you are, how do you move from what used to be the secure, safe job with benefits to take care of yourself and your family. How do you move to a place where you have control over your own income? Which it would be self, S, B or I. Right. How do you do that? Well, it really does. It takes. The first thing it takes is it takes courage. It takes courage. The reason most people don't move, a lot of people that are wannabes, they wanna be business owners, but they, they don't do it because. From San Antonio, Texas, Aaron, Good to see you. Okay. I'm still in the even. My goal is to move to B. Okay, good. So I. I understand it. So the first thing is the courage because everybody will tell you that it's risky. Why do you want to do that? You're not smart. Enough. You don't have experience. So all the little voices are not in your favor when it comes to jumping out of that equadrant. I understand it. But at some point you're either going to get fed up, discouraged or you're going to be tired of beating your head against the wall. Working for people that don't appreciate you, having ideas that nobody listens to. Doing a job that you really don't want to do. You just need the money. It's not a great way to live your life. You spend most of your waking hours working doing something you don't like doing. That's insanity. So I'm just going to tell you you're foolish if you're doing that. So find something that you want to do and do it. If you get a job doing it, that's great, that's fine. As long as you're allowed to continue to expand the parameters and the boundaries you and allow you to earn more money. Otherwise, you know, you can't make more money than your boss. I remember when I was at the one job I had, my first job was as a sales rep for a large multi fortune at that time, Fortune 500 company. And we were, you know, a few of us in the company were making a lot of money on sales commissions. But then they froze our commissions and changed the commission structure. So the more money you make, your actual Commission went from 5% to 3% to 2% to 1 1/2 percent. Now that's a real incentive to keep selling. Why? Well, they didn't want the sales reps out there making more than the sales managers. That's not my problem. So I quit. You know, Xerox, the company I work for was Burroughs. I mean Xerox, where Robert worked initially did the same thing. They started cutting the commissions backwards. So you don't want that. If you, if you're a high performance individual and you want to be, maybe you're not right now, but you want to be. There's a path to doing it and the path to do it is a path that you need to lay out so that you can follow it. Just hope praying for it to happen is not going to happen. Might help, but it's not. A good prayer is not a great business plan. Okay. All right. So. Hey, Ana Paula. Just talking about you yesterday. Your ears must have been burning. All good, all good. All good. From Brazil. So you get, you want to move out of. It takes courage. Takes courage. And it takes discipline. Discipline. What is discipline? Doing what you're supposed to Be doing whether you're supposed to be doing it, whether you like it or not. Okay, so let's say. So we're now ease. We want to move out. Well, first thing is to find something you like doing and make sure that whatever it is you want to do is something other people want. One or the other doesn't work. Both work. Okay? So you can find something that other people want. Like people want to have great health and not never have to worry about a coronavirus. They never want to worry about that. Okay. Now that's what they want. And they might pay for that, but most of us don't know how to do that. I don't know how to create vaccines, and I'm not a doctor, and that's not my thing. Maybe I'm good at helping people boost their immune system so I can help in that area, and that's something I love to do. But if you don't love doing it, you'll get. You'll burn out because you're not going to make money right away on it. Okay, so both things. And how do you find that? Well, you take a look at, you know, your history, what you've done, what you have some experience with. You don't have to be the best, but you just have to have some experience with it and enjoy studying about it. Okay, so enjoy studying about sales. So for me, when I went to get a job in sales, I didn't care what I was selling as long as the product was legal, ethical and moral. I love the idea of convincing people, learning how to influence people. You know, I just something I get off on. So that's why I. That's why I pursued it. And it didn't, like I said, didn't matter so much what the product was. I didn't have to be in love with the product, and you don't have to be in love with the product. You can be in love with the idea of learning about it. You could be in love with the idea of just learning to grow. You'd be in love with the idea of making it to the S or the B or the I quadrant. That's okay. But be in love with something because there will be days when things won't work the way you hope they work. And you're going to need to have some energy, some oomph to get you going through those days. Okay. Does mainstream education prepare you for working at a job? No, Gaurav. Mainstream education used to prepare you for working at a job. Used to. I say back in the 60s, 70s, maybe even the 80s, it prepared you for that somewhat. But as times have changed, it doesn't even prepare you for that. It doesn't teach you how to cooperate, doesn't teach you how to face mistakes, doesn't. Doesn't teach you how to do trial and error, doesn't teach you how to speak, doesn't teach you how to collaborate. None of those things, which are all things that you need, even if you have a job. So it's, I don't want. Don't go, don't take me there. We'll never get through this. But it's a great question and that's my answer to it. Okay? It doesn't. So which is a good point. Where do you learn how to do this? Well, you're learning right now. You're learning something here. And what you will do is if you think about the five things that you want most out of your life, whether it's financial independence, whether it's wealth, whether it's income, whether it's health, whether it's happiness, whether it's relationships, all of that, where are you going to find it? You're not going to find it in school because school doesn't teach any of that. Somebody says, well, we're not teaching financial literacy. I go, really? What are you teaching? This is in a high school in Ohio, in Dublin, Ohio. Well, we have one class on financial literacy. I go, wow, one class out of four years of high school, you have one class on financial literacy. I wasn't that sarcastic. I said so. But who. What are you going to teach him? Well, how to balance a checkbook. You know, how to manage your income and expenses. You can teach about sales. No, you teach them about a financial statement. What do you mean? What's a financial statement? An asset liabilities. They look at me blank. So that was considered progress, but it's not being taught. It's just not being taught in school. Hamid, you said it takes discipline, how we can continue doing what we're doing even though we cannot see the result we desire. Yeah, that's right. And that grab, that's pathetic. Yeah, school is pathetic. I agree. So. But in answer to Hamid. Yeah. Because you won't get what you. You. You won't get what you desire right away, necessarily. Okay. It's just not. It's not going to happen that way. Has to be transformational. So the self education. Yeah, that's right, Garag. It needs to be transformational and it needs to be. It needs to help people change. And what needs to change because here's the thing that's. I'll just say this one thing about education. I'm going to get back to getting out of the equator, okay? The thing about education is technical skills are important, don't get me wrong. Particularly if you want to be a doctor, a lawyer, an engineer, electrician. Some of these things you need to go to school or trade school. Like my son went to two years of university, didn't like it. He went to a trade school to learn how to be, because he loves cars and learn how to be a mechanic or learn how to be a technician, as they call them now, an auto tech. And he loves it. He's happier than ever. Goes to work every day. He works hard, he works overtime. He enjoys it. You know, he's patient. He'll make more money later, but he's happy. I. Maybe if I. You want something for your kids? Do you want to be happy? Yes. Make some money? Yes. It's a skill you can take anywhere anyway. So there's some things you need to get some technical skill for. So he went to a trade school for a year and a half and learned how to do that. And he's getting really good at it. But the second thing, and the most important thing that education misses that is the most important, is that the reason people don't transform, as one of you said in the chat, the reason they don't transform is because how to transform yourself is not even part of it. It's not even looked at. It's not even talked about. For example, Example, I always use. You've heard me use this before. Everybody like to be in better physical shape. Well, how do you do that? The technical side of that is not very difficult. Right. Eat the right foods, get some exercise, drink plenty of water and don't put toxic things in your body. Get. Get some sleep, okay? And you will be in better shape and you will lose weight and all those things will happen naturally. Right? So it's simple. We all know it. But why is it so difficult? That's right. The reason it's so difficult is because what comes up in your head is resistance. Resistance. You can almost look at resistance as an invisible force of nature, which it probably is at some sort. But it's your little voice telling you, don't do that. You don't have to. Not right now. I got more important things to do. It's protection. It's trying to make you feel good. Okay? Alarm goes off and you're supposed to go to the gym or work out or do Your miracle morning that has exercise in it. You're thinking, well, I did exercise yesterday, I'm taking the day off. And at that point you're screwed, right? Because you've let your little voice and you've let your resistance get in the way. That's the personal development side. So back in the 80s, when I started teaching and learning how to do this, I took my first personal development course in the early 80s and I saw that for the first time. Nobody had ever exposed me to that before. At that stage in my life. I'm going, oh my God. So the issue is not out there, the issue's over here. It's me, it's my resistance, it's my lack of discipline, it's my whatever, right? So that's why the education system is never going to really work until it addresses people's resistance. Kid needs to learn mathematics, some of them can't, don't want to, are convinced that they can't, convinced that they're stupid. That's just their resistance. A great. My sister, an award winning teacher, understood personal development and academic development and she combined the two and she took kids that were failing every class and got them to be C and B students, which is pretty, which is pretty good. Okay, so it can handle. But that's one of the reasons education doesn't work. Okay, so going back, going from E. Yeah, E to S or to B. Okay, what do I gotta, what do I gotta do? Well, first thing, like I said, is find something that you like, something you like studying and start, start with that. And I would suggest if you're gonna do this really from scratch, do it part time, don't quit your job, but just, you may have to burn. Work seven days a week and burn the midnight oil a little bit. But start experimenting with it, start testing it a little bit. You could sell, you could be. Join a network marketing company is a great way to start. Why? Because you're going to learn the basic skills about how to sell, how to build teams, how to teach. The product is handled, the systems are handled. You're already on a team, you already have mentorship, the legal stuff's all handled. You don't have to worry about any of this stuff that trips up most entrepreneurs and go out there and test it and learn how to do it, follow their system, learn how to follow a system. Probably the fastest, best way, best way to get started or sell something for somebody else, be a commission sales rep for somebody else. Do a little coaching or training. It's another easy business right now. The term side hustle is a very popular term around the world because everybody's looking for a side job, a side hustle, to give them additional income for what they're doing. But remember what you and I are talking about. We're only gonna do side hustle to get us to the next place. And maybe the side hustle becomes your business, okay? So having said that, there comes a day when the income you're making over here in your new business, you is kind of eclipsing or coming close to what you're doing over here. And you cut the tie and you make the jump, okay? Now it's a terrifying. It's an exhilarating and terrifying experience all at once. And it's exhilarating until you come to the realization, oh, my God, if I don't sell something, I'm going to starve to death. I'm going to starve to death, right? Hey, Barry Mitchell. Yeah? Sell something. That's right. Sell something to somebody else to get started. So, so. But then you come to the realization, oh, my God, if I don't sell, I'm gonna starve and maybe I should go back and get a job or blah, blah, blah, you know, so once you get past your panic attack, sell, okay? So along the way, if you were gonna learn how to golf, you take golf lessons. If you're gonna learn how to swim, you could take swim lessons. If you're gonna learn how to play tennis, you take tennis lessons. And unfortunately, one tennis lesson is not gonna make you a pro. One swim lesson is not going to make you a pro, okay? So what you do, if you're going to learn how to sell, as Barry says, which is your number one skill anywhere in business, you start studying and you keep studying and you keep finding good mentors, and that never stops. You have your own business, you don't have your own business. I keep learning. I keep reading books, I keep taking masterclass, I keep taking seminars. I keep looking for other mentors that can teach me something. Another just little. That nugget that I can use, okay? And at some point, if you go to BlairCenter.com, there's people there, there are some mentors there that you can seek out and watch some of their videos and seek them out because some of them are the best salespeople on the frigging planet, okay? So you make your jump, okay? So you make your jump. So now you're self employed. And a lot of, like I said, a lot of people are self employed, but 80%, if that business doesn't work. 80% of it is not because of your competition. 80% is because of something you don't know, something you don't know how to do. So therefore, then it's. So now it's important to understand how do I go? What does a business need in order to keep going? Well, number one, you got to sell. Number two is you have to have a team. You have to have a team. And let's just say this, to be self employed, you really don't need a team if you can do it on your own. If you don't really need a team, maybe a few assistants, maybe a bookkeeper, something like that, but you really don't need. As long as you can produce and be the best and know how to sell and market, then you'll generate income. Okay, so, but that's, but as I alluded to in the beginning, that becomes slavery. It becomes slavery because your income, whether you like it or not, however you twist it, is still dependent on you. You stop income stops. You stop income stops that. Now that's one of the big problems with being in the S quadrant. That's why I call it. S also is, is self employed. So S stands for solo, S stands for scared. S stands for a lot of things. You can, you can put your own, your own acronym to it. But point is, where do I get financial freedom? Because this is not freedom. You realize that you gave up your day job to now work 247 and you're working for your job. You're a slave to your own business, okay? And what will happen is you'll burn out. You will burn out unless you understand the tools and the skills of going to the B side, of going to the B side. Okay, now again, you could say self employed and that's okay, and that's good. But having been there for a long time, having jumped out of it, back into it, out of it, back into it and out of it. I could tell you the other side is a lot better, but it's a little more difficult. It takes more knowledge, doesn't take more skill, but it takes more knowledge. So I want to share some of that with you. Okay, so why do you want to go from S to B? Why would you want to go from S to B? Well, freedom. That'd be one thing. To truly have financial freedom. To be able to do what you want to do, when you want to do it, anytime you want to do it financially. Right? And to really have complete 100% control over your time, over your time. Now you could say, well, I'm doing pretty well, you know, I'm a trainer. I've got a lot of things going on and I've got plenty of income. I could take plenty of time off. Yeah, you can. Until such time as that income runs out and you need to go out and generate another gig or two or perform or provide coaching services or something to generate, get the thing going again. Imagine, if you will, a business that works completely without you, works with your inspiration and leadership, but it works without you doing the work. I'll say this again. If whatever your job is or whatever you're doing is something you can do on your own and you don't need anybody to really help you, you don't need to go to the B quadrant. It's. It's a waste of time and energy. It's a waste of money because you won't do it right anyway. So the best. Best. Barry goes S stands for somebody says specialist. Barry says stupid. Survivor, psychotic. That's psy. Yeah. Right. Okay, got it. Okay, so here's the thing. Here's the criteria. And I look to Warren Buffett. Warren Buffett said really well, you know him, he's one of the most successful investors in the world. Let me just. I just want to. Wrote it down the other day, is that when he looks to invest in a business, he's not going to invest. Nobody's no investor. So if you. One of the things is you run out of money, right? You run out of money. You can't expand. You need a bigger website, you need this. But you don't have any money, and you're not generating enough money through sales to make it happen. Usually. Now, that's not true in all cases, but usually, particularly when you're getting started. Okay? So when it comes to going from S to B, Warren Buffett's criteria are these three things, so you might want to write them down. Number one, is the business leverageable? Is it leverageable? In other words, can I scale it up? I mean, if I. If I got. And is it. And not only can it be, but is it easy to do, Is it a logical transition to scale it up? I mean, if you are good at yoga, you're a yoga teacher, you could open additional yoga studios, right? Yoga studios. So it is somewhat leverageable. It's a little difficult, but that can be done. Okay, so it's leverageable. Second thing, is it financeable? Can I finance it? In other words, could I go to a bank and give a bank, a banker, reasonable assurance that this, that if you give me a million dollars to help finance my business, that you're going to get a good steady cash on cash return going forward without, you know, hopes and dreams. Okay, and the last one is a criteria. Is it predictable? Can you predict what the next step is going to be? Is it a predictable business? That's why he invests in very predictable businesses, big boring business. Because he can see that it, you know, I think he invested in a network marketing company out of Ohio. I think it's called OpenTable. Something, something about that. But it was a network marketing business that sells cookware, kitchenware to households. And it's very simple model, very predictable. Like I said, network marketing is very predictable process, very leverageable. And so that's the criteria. Now let me give you a couple other things. Think about, Let me take a breath here for a second. Think about Rich Dad. We talk about assets and liabilities. So if you remember what the definition of an asset is, what's the definition of an asset? What's it, where's the money flow? Okay, type it in. Okay. Hey, Rami. That's right. It's leverageable, financeable and predictable. Okay, good. Now what does an asset do? Money flows. Where? Into your pocket. A liability flows it out of your pocket. Make sense? So an asset puts money in your pocket. The reason the I quadrant, the investor quadrant, is so desirable is because you invest in a piece of property. Okay? The property is now an asset if it cash flow. If the, if the income, if the rental income is greater than the expenses, it's giving you a positive cash flow back in your pocket. Okay? You don't have to do anything. You hire a property manager to manage it. You don't clean the toilets. You let them clean the toilets and take care and get the tenants in and get the tenants out and hopefully you've got enough margin in there that it generates cash flow for you. Ken McElroy, one of the Rich dad advisors, is probably one of the best in the world at doing that. He never buys property for the capital appreciation for the appreciation. He only buys it for cash flow. And he's constantly monitoring it to make sure it works. Now he's got over 200 people, property managers working for him on his payroll that monitor that. He doesn't do it. Okay? If he had to do it, he couldn't do it. He couldn't have 5,000 units and manage that himself. Just not even possible to do. And to generate the kind of cash flow that he wants, he can't. You know, doing it himself, he wouldn't be able to do enough. So he needs to have a bigger business to do that. And by the way, each investment is a B quadrant, is a B business in and of itself. Okay? So understand now we go to the B quadrant. In the S quadrant, you're the asset. Now, if you are the asset of your own business, you are also a liability to your business. Right? You're the asset. You're the one that's putting money into it. You're the one. Your income, your efforts are putting money into the business. Okay, but because it's you, you're also a liability. What do I mean? Because it's because of you that's blocking the growth of the company because you are not leverageable. Now, when I figured that out, I had a brilliant idea. And Barry Mitchell can vouch for this. And he's going to laugh right now if he's still here. Barry and Ronnie both as I had the idea. Well, then if I'm the liability of my own business because I'm the one that's generating, I'll just create more of me. I'm just going to create more people, more teachers, more trainers, more in the old days, franchisees to do what I do, and that's going to be my asset. And that's going to flow money into my pocket. Well, that's possible and we did it and we do it. But it's a very, very difficult way to go. Why? Well, because your assets go home at night. Your assets have other interests. Your assets have a brain between their ears and a little voice. And so there's all kinds of things that can happen once they figure out what you can, what they figure out what you have to teach them and they don't want to be with you anymore. They'll take your information, they'll go off and do it with somebody. They'll go off and do it on their own. Why? To save a little bit of money. They'll, they'll typically, they'll crash and burn because they don't have a system behind them. But that's what happens. It's a very unstable asset. Not an asset. What's, what's actually an asset in that, in that business in the days of the franchise, was the franchise document, the legal document that outlined a territory, the stipulations of the franchisor and the franchisee that piece of paper was actually worth, was, was the real asset involved. Okay, now that's too technical. I'm not going to get into that right now. Definition puts money in your pocket. Yeah. Aaron, you're the liability. But it's a good realization, right? Because again, if we're looking at Buffett's criteria, is it. Is it scalable, is it predictable, is it leverageable? No, you're none of those things. You're not financeable. Go to the bank. I want you to give me a half a million dollars for me to grow. Grow me. Is there a banker going to say yes? Is an investor going to say yes to that? The answer is absolutely not. What's the asset? What's the hard asset that's going to generate the cash flow? So when I went to raise $3 million to buy a building, I could show them that here. Here's the income from the building. Here, the tenants. I'm one of the tenants. Here's another tenant. Here's a major tenant. And here are the events that we're going to do every year. And this is the money that's coming in. Here's our expenses. Boom. Raise the money. Okay, but if I were to go out and say, I want three and a half million dollars for me, but you give me three million, I mean, if somebody really loves me, maybe. But I don't know anybody that loves me that much. Or you. You see the difference? One is financible, one is not. Okay, so what is financeable? So with that in mind, now we're going to go from S to B. So from S to B, what do you have to consider? Okay, well, one of the things you're going to consider is that you're going to turn your bit. You want your business to be an asset and to have assets, all of which cash flow. Now, how do you do that? Dr. Buckminster Fuller talked about artifacts, tools, or we call them products. Products or products or services out there. So, for example, this is an artifact. I wrote it one time. I don't do anything. But there's distributors, there are promoters, there are publishers out there that are selling this thing. And once a quarter, I get a check, a royalty check for this. So this is an actual asset. Okay, because it literally puts money in my pocket. I don't have to do anything with it. Now, I'm going to promote it and help that, but I don't have to. That makes sense. So this is an artifact. So a game could be an artifact. A. We used to have an objection handling kit. I'm bringing that back. A series of flashcards and a video thing all in a box. And you could take it and work and drill with your team, become much Better at handling objections and closing deals and doing sales. The process of creating another artifact right now and how to predict and how to predict and create your future. Okay, so artifacts, because it may be that artifact. I'll give you a little hint here. If you want to begin to move to the B or the I side and you're in the S side, come up with one idea of an artifact or a tool that you can create that will get you out of that rat race. It doesn't need to be much. Could be a survey, could be a diagnostic that's automated online, could be a subscription site, although those are very difficult to do, but something by which that operates without you and generates passive income. Because in my mind, definition of the break between S and B is when the business is generating passive income. At that point, you now know you've begun to jump the gap. Where's the passive income? Regular, predictable, leverageable passive income. Not just, well, I got passive income this week, but not next week. Okay, so having said all that, could be a diagnostic, could be a product, could be a survey that somebody pays for. You know, at some level, people are going to pay for that and the money's going to come through and it's going to go into your account. Okay. I just worked with a company last week and their product was a diagnostic, a personal development diagnostic. And also it's all set up. They're just restructuring it in a way that it will run. They're going to drop the price a bit, put it, operate it in a way that will allow it to generate the income and people to get the results and be debriefed on the results and what to do about all that on their own without anybody attending it to it. Now they'll ultimately fall into a deeper funnel where they could sell more to them later. That's good, but the very beginning part of it, and their goal is once they get $10,000 a month of passive income, they'll know they've made the jump, has been made. So it's their step into the B quadrant. Now, what also comes with B quadrant teams? When you're an S, you're concerned about people, you're managing people, you're managing yourself. Okay, when you go into the B quadrant, now it's about teams, because remember, the purpose of going to the B, the only purpose is because you, you, you have a task or something you want to do that's bigger than you, just bigger than you. If it's not bigger than you, you don't need to do it. Don't even bother doing it because you're gonna waste money. Okay? But if it's bigger than you, or if you want to make it bigger than you by scaling up what you do, okay, then you need a team. You need to recruit teams. And we have a whole checklist for how to build, how to find and build teams. You need the artifact, the teams, passive income. And as Tom Wheelwright, one of the other advisors says, it's about systems. It's about systems, okay? So in the S, you're managing people. You may have a team, but you're managing people. In the B quadrant, you're managing systems, and the systems manage the people. There's a difference there. So remember in the example I gave of the personal development diagnostic, they create systems, online systems to make that happen. Now, obviously you need marketing to drive that, and they got to work on that too. And fairly automated marketing system, and through joint ventures, affiliates and social media marketing, whatever that takes. But now they begin to have the opportunity to obtain a little bit of financial freedom, if that makes sense. Okay, so again, the mindset's different. If you want to look for a template, One of the great templates also comes from Rich Dad. It's the bi triangle, the business and investor triangle. What are the things you need for a B quadrant business? Well, you need a mission. Okay. I would maintain minute you start any business, whether it's S or B, you need a mission. What's the mission? Who's the team and who's the leadership? And then initially that's going to be you. Okay, Mission, team leadership. Mission, team leadership. What are the areas to focus on? Okay. If you remember that at the top, inside the triangle is product or service. At the very top, very small. Why is it small? Because it's the least important part. It's the least important part. Follow me on this. So you have a product or a service. Okay. Not you, a product or a service. Second to that, you need to have legal systems. Legal. Why? Because in this day and age, if you're going to do anything out there that's going to operate without you or it's going to put out to the world, you need to protect it. Otherwise people will steal it. People will rip it off, people will challenge it. And if people find out that you're making money, they'll come after you and they'll try to sue you for whatever reason. They can't. So you have to have a. You have to have legal protection. I maintain in the squadron, you need legal protection, at least on your. If you have agreements and contracts with people. Make sure they're written in your favor. Make sure that somebody can't come back. And if you're a trainer and you have created great results for an organization, that company just says, well, thank you. We're just not going to use your stuff. We don't need you anymore. They fire you and they're using your stuff and making money with it. You don't want that. Okay? So you need to have legal systems to protect you, your business, and your property. Third thing inside the triangle is systems, right? Systems systems, cash flow, systems, accountability systems, all these kinds of systems. What do you need systems for? And I have people on my side. Well, we have a system for this and a system for that. That's not a system. It's a process that you follow. And that's great that you follow it. But until somebody else is following that process, it's not a system. Process is what you're doing is a system is a process that becomes formalized. I'll say it again. A system is a process, a way of doing things that you formalize. You put it on video, you document it so that any newbie can come in with a minimal amount of training and run the system. Run the system. So it doesn't matter whether you're at the beach or not, doesn't matter whether you're sleeping or not. Systems. In the absence of systems, people attack other people, because that's what happens in the S quadrant. It's all about the people. And I'm all about people, too. But if I'm trying to create a predictable, leverageable business, it's got to be. It's got to be an asset, and it's got to be a system. You got to be a series of systems. A business is a system of systems. Okay, what's next? Communication. Communication. Very big area that's internal and external. So internal is how we communicate as teams. And our code of honor and all that stuff plays into that. The mission, the code of honor, our values, and externally, our marketing, our sales. You know how if you look at sales, there's attraction, which is marketing, the conversion and the retention. So all those are systems. Okay, but. But if you can't, don't communicate well. If you don't communicate well, you're not going to do well in the public, you're not going to do well in sales. Okay? So communication. Very. One of the bigger parts of the BI triangle, and even bigger than that, finally, is cash flow. Does your business cash flow, and do you have enough Money to keep your business going through good times and bad times. Remember what I said? 80% of the businesses that end up failing are fail. Not because of competition, but one of the big reasons is because they have no cash flow. They run out of money. They're making money on paper, but they're not collecting it or not collecting it in time. And they're growing faster than their expenses. Okay, they're growing. No, they're growing fast. They're growing faster than their income, so they can't keep up with their expenses. What I'm meaning to say. Okay, so I know this is a lot to throw. There's a lot to throw at you. But a couple other points of. And by the way, I'm writing a book on this. So this is. I just finished my other one. I'm doing this one. Is it a couple things to keep in mind when you're going from S to B or from E to S. The minute you decide that you're going to go into a place that you have not been before, listen very, very closely. Listen very closely. The minute you decide to go into some arena that's unknown, somewhat unknown to you, you're going to face resistance. Think about it. If you have an idea and you push your idea somewhere out into the future, there's already something out in the future. So it's going to hit resistance out there, and it's going to push back on you. Now, unless you recognize that, unless you are strong, you'll give up or you'll be deterred or you'll step back. Okay? So there's always going to be resistance the minute you do that. We teach people how to go from S to B through the use of PERT Project evaluation review technique. I've talked about that before. Creating a whole visual roadmap of items. Let me see. You know that. Look, See, this is like how to build a birdhouse. Step. 1, 2, 3, 4. 1, 2, 3, four. Five steps to building a birdhouse. So that's all laid out. But later, what you want to do is you want to do something that's a little bit more like this, which is building a B quadrant business. Okay? Now, you don't need to read all that, but what it takes is it takes again, unfortunately, it's bigger than you. So you can't hold it all in your head. You need to create a roadmap and a map out there to show you how to do it. Okay? So the minute you put that thing out into the future, there's gonna be resistance. What I find from S quadrant people that are trying to go into the B quadrant. Here's the number one. Here's the number one complaint. The minute they start creating a per chart, you know what it is? I'm in overwhelm. I'm in overwhelm. Why are they in overwhelm? Because there's too many things to do. Too many things to do, too many open loops, too many things that should have already been done that haven't been done yet. And now they're all in front of you. And because you are used to doing things on your own, you're going to. That's why you need a team. That's the first evidence that I look before I take this on. I need a team who. A partner, somebody that's going to share the burden with me, that has some other expertise in the areas that I don't. And you get together and you work together. Now whether that person's an employee, a partner, a volunteer member of your community, that's up to you. But what I'm going to tell you is it's not something that you do by yourself. I was working with, like I said, I was working actually two companies last week, one of which was a sole proprietor. The other one, there were three people on the team. Now the person on their own was like. And I had to help help her through it. The other people that were like, you know, they would falter, then somebody pick up, then somebody else would falter, and then they'd pick up. And my time, they got through, they were ecstatic. Because once you see it out in front of you, all hooked up together, there's a sense of euphoria because now you can see the real thing. It's real, it's real. It's hard asset. It's sitting right in front of you. All you got to do is follow the steps, right? So again, that's the first thing is remember, the minute you decide to make a move, you're going to face resistance, number one. Number two, and this is from Robert. One of the things I love about Robert. We've been friends for many years. He has the ability to take very complex things and make them really, really, really almost stupidly simple. Stupidly simple and stupid in a good way. I mean, stupidly simple. So that it's so easy that anybody can understand. Take the book. Rich dad, poor dad. Take the cash flow quadrant. Take the book. These are very sophisticated concepts that the average person totally gets it. Okay? So I gotta get my money to work for me rather than Me working for my money, I think I got that. Okay. In business, I'm in one of four categories. Okay, I can see that. So he has the ability to make things really simple. So the genius, the genius is in when you're making the move is to not go complex, is to go simple. So what I'm trying to tell people and what I do for myself, what is the simplest thing, the easiest, simplest thing that I can do to generate, to get my business to produce passive income through the use of a tool or an artifact that's ongoing day after day after day that churns on its own. If I can do that, then I can leverage it. If I can leverage it, I can finance it. I can finance it. I can scale it up. Okay, back to Warren Buffett. Understand now, we covered a lot of material. How to go from E to S, from S to B. Okay, and again. Cloud minting, helicopter liability. Ouch. Good advices. Thank you, Aaron. I have the best tool ever. Okay, good, Lars. It's good. So share your tool. And if it's a great tool, share figure a way to leverage it and to get that tool to work without you. Get that tool to work on its own and you'll be on your way. You'll be on your way. So again, one of the reasons the Rich dad company operates so well is the best selling book and a game. Two products. I mean, there's some other ones, but those are the two main products and they churn day after day, year after year, decade after decades. And it works really, really well. Now, it's not the only way to build a B quadrant business, but if you're going from S to B, that may be one of the faster ways and the easier ways to do it. The other way, of course, is to create a project or something that you're on to that's bigger than you, that you just cannot do by yourself. You cannot do by yourself. That forces you. It forces you to do that. Like when we decided to build a franchise, there's no way I could build a franchise on my own. I have no clue how to do it. So I needed partners and I needed teams and I needed IT systems. We needed all kinds of things to do that. And it worked. And it worked for a while. We had some other issues that you still have. All the other issues, no matter. You know, even just because you're in B doesn't mean you're absolved from partnership issues and liability issues and people issues and all those things. But at least you're doing it on a scale that allows you the free freedom to make a few mistakes. Problem in the S quadrant. If you make, if you make a big mistake, it can cost you pretty dearly, you and your family. If you've got leverage, it's not quite. It's not. It doesn't have to be quite as painful at some point. Okay, so that's a lot of. That's a lot of good stuff. So hopefully, if you, if you got something out of this, let me know if you got questions about it, please. This will be up on YouTube, so go to the YouTube channel. Go to BlairCenter.com by the way, we got several challenges. If you're gonna, if you're gonna be doing. If you're going from E to S S to B, you take the cat the. And you're gonna do a pert chart on it. You say, here's my goal, my goal out here in the future. Okay, there's my goal. And then you work your way back from there. Right? You work your way back from the future back. And I'm not gonna teach pert right now, but you start here. So what are you going to do? So the goal is to build a global training system. A global training company. Okay, so a global training company. That's great. So what happened just before that? Well, we were generating. The company's generating decent passive income. That's how we know that it's an asset. Right. So what happened just before that? Well, what happened just before that? Go to your quadrant. We have, we have product development systems in place. We have legal systems in place. We have our ca. We have our marketing system in place. Selling system, brand management systems. We haven't even talked about brand this time. Our brand management systems in place. And legal and accounting. Yeah, accounting and cash flow management systems in place. And we have our, you know, our, our team development systems in place. So those are the end products. And then you, Then you. Where are we? Okay, so these are here. So then you got to work your way back to the future. What happened before that? Before that. And so what you have is you have like seven or eight lines of things that you're doing back to the present time here, where you are today. And, and once you get those events up there, you're going to. It's a lot. Okay? So right now I need somebody to help me here. Somebody here and here and here. And we're gonna get. And we'll get this thing crack and get rolling on. All of a sudden people know exactly where they need to go. Yeah, you're gonna make mistakes. Plans never go according to plan. We know all that. But you can reasonably predict, remember, predictability was key. Can reasonably predict when this thing's gonna launch. You're gonna reasonably predict what the costs are going to be along the way. You're gonna know what if you need to finance it. You're going to know how much you need to finance, and you're going to know when you're going to be able. When the gate, when the curtain is going to open. And with that, you have freedom. With that, you have the ability to truly create your dreams and to truly live your dream and to create a legacy lifestyle for yourself, for your family, for everybody else. Not many people do it. Not many people at all. And the people that do, like I said, most of them fail not because they're bad. It's because of lack of knowledge. Lack of technical knowledge, how to sell, how to build teams, blah, blah, blah. But also lack of knowing how to deal with their own little voice, how to deal with resistance, and lack of ability to reach out to people, being willing to reach out to people that can help you to be part of your team. Okay, so we'll talk more about this possibly next week if you send me in some questions to go to YouTube. Go to my YouTube channel. Please subscribe. Please subscribe. Let me know that it's like it. Share it with other people. Go to the website as well, because a lot of these pieces on the legal piece, on the selling, on the marketing pieces, all the information on how to do that is all video based. And it's all there for you to just go check it out and just slide those pieces together and we'll see you on the B, the B and the I side. Okay? So thank you for being here. Thank you for being part of this. Why am I so. I'm not even gonna repeat that. Why am I so handsome? But you're not looking at me. You're looking at. You're looking at that right there or that guy up there. That's Bucky Fuller. Okay. Thank you for the compliment. All right, you guys be amazing.