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The Difference Between Small And Big Businesses

Robert Kiyosaki's S and B quadrants of the Cashflow Quadrant are the basis of cashflow 101. They show you whether you align with poor dad on the left or rich dad on the right of the cashflow game. Since I was on both sides through small traditional and big 21st century business, I feel fairly competent to describe the realistic differences in working and thought process between the two.

Without bias, Kiyosaki states any company with over 500 associates must inevitably be operated using a system, making it a B-quadrant business. Or else it would be dead. The skill of the owners lies in the system they create. And that's why biggies like Burger King, UPS, KMart, HP and Suzlon (to name a few) thrive on systems and keep expanding. But systems need not always be conceived from nothing. Often they come at a price.

Microsoft paid Hotmail more than a few million to purchase their system. Google has recently acquired FeedBurner to own a blog syndication system and these are other means. At an a one to one level too, Kiyosaki says, one can purchase a system using personal franchising. As a consequence we become real B-quadrant entrepreneurs by straightening out in our thinking... since the system is already franchised. As a consequence the basis is ready to develop a great business.

So how does the thinking differ?

To begin, B-quadrant business persons possess tangible 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. Of course they often build on these things with time, but they do appreciate from the inception that a 'vision statement' is what will bring scalability to the enterprise. If not, they would continue to manage out of the S-quadrant forever.

Second, B-quadrant individuals are in no way excuse focused. They are driven by dreams. You will never have them offer you an excuse for things to go incorrect. Which then makes them enormous leaders. While S-quadrants 'manage' happenings, B-quadrants lead the way through them. Leadership is a major B-quadrant attribute, which comes from the focus on vision.

Another aspect of mindset is thinking 'leverage'. While the S-quadrant is gratified to be the professional and does stuff himself for his business, the B-quadrant always looks for a way to move business processes to a system. This is apparent in the quote 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 sentiment 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."

Quite bluntly, Robert Kiyosaki says, "Poor people work, Rich people network." And this is a fourth feature. 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 pattern. Networking is about helping others to get what they want. Working is about getting others to accept what you have. Not surprising 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 under their directive.

Fifth and final, as Kiyosaki puts forth at the commencement of Rich Dad Poor Dad, "The rich don't work for money". B-quadrants work to create assets and these makes money work for them. The S-quadrants aren't at peace till they get paid for their labor; and as a consequence remain poor.

By: Sandeep Nath

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Thus, in case you would like to elevate from traditional to 21st century business, check out any network marketing opportunity. The operating systems will be privately franchised and you will be taught how to acquire the mindset using a proven training system. Click here for an authority post on this www.doonlinebusiness.info/2009/12/14/network-marketing-opportunity/

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