Wednesday, June 6, 2007

Rich Dad's Lessons: If you are not rich, you need a system to get wealth

Based on Kiyosaki's work

Rich Dad's Lessons: If you are not rich, you need a system to get wealthAccording to Robert Kiyosaki, in the money world the 90/10 rule has prevailed most of the time: 10% of people are controlling 90% of the money. If so, we are talking about 600 million people that have 90% of the assets and the circulating money of the world. Many of those 600 million people are business owners or investors.

Just look around you and you will understand the 90/10 rule. Partly, that happens because a lot of people don't have the appropriate education to look for financial freedom.

If you look for financial freedom but you are not rich now, it is clear that you need to be educated to get it. And unless you become a lucky star in the world of the investments, you need to create a bridge that allow you to pass from the economic dependence to the financial freedom: you need a SYSTEM.

The money-making systems are difficult to create and they require much hard work at the beginning. But once they start to generate revenues, if they have solid foundations, acceptable conditions in the market and some luck then you will be able to delegate its operations in other people so you can think about growing the system and making more money. This is what the true business owners do: they use or buy the time of other people to operate their systems.

There are three ways of having a money-making system to look for your financial freedom: by creating your own system, by buying a franchise or by joining yourself to a network marketing system. Let's see the advantages and disadvantages of each one.

The creation of your own system is probably the most admirable of all the ways. If you build your own system and that is successful, you can end up becoming an extremely rich person beyond what you can imagine. The satisfaction is enormous when your own system is able to have a strong impact in the community where you live, or even in a global level. However, you need a strong dose of creativity and perseverance, a lot of perseverance. You should know that when somebody is building his own system, the failure is really probable at the first intents, but in turn each failure is an approach toward the success. To build a system from scratch will require a lot of effort from you in the initial stages: you must dedicate many hours in the bases construction and fight with many inconveniences that will come. However, keep in mind that when your own system achieves the financial success and you find appropriate people to manage it, many of your dreams will be true and you will achieve the financial freedom.

Another of the options is to buy a well established and proven system: a franchise. When you do this, you avoid the hard work and the inconveniences of the first stages of the system creation, because the franchise is given with the guides for the established operation, a well-known brand, prestige and with a proven business model that works. You will be able to focus yourself on finding the best people to run the business and being most competitive in order to generate every time bigger revenues. The obstacle with the franchise is that most of they require a strong investment of money and maybe you don't have the money or the necessary credit. Many franchises of famous companies can cost more than $100,000.

Finally, if you don't have the necessary money or the credit to create the business of your dreams from scratch or to buy a franchise and besides you think you need a training before becoming a true business owner, you could consider a network marketing system. This option is perfect for many people, because if the system is good, you will be trained for some important matters like the sales and the marketing and, besides of that, in order to join yourself to these systems you will probably need less than what an average person earn per week in a average job. Basically, to become a member in a network marketing system is like buying a personal franchise with an incredibly low price. The obstacles of the network marketing systems are the scams: systems deceiving many people. For that reason you must investigate all the options before joining yourself to a network marketing system. Here you have some tips about investigating a network marketing system.

And don't forget this: Internet also allow us to build other systems based on revenues by advertising, whenever you can build a website with enough traffic. That can be very interesting but you need some skills like those that we constantly comment in this blog.

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