Understanding The Concepts of Cashflow Quadrants for Business Success

Your business success is determined by your intelligence and hard work. You need to understand the concept of effective business management to run business better. You also spend more time to learn the concepts of Cashflow Quadrants. The concept is introduced by Robert T. Kiyosaki. Based on the concept, the sources of income can be divided into four. People in E quadrant  become the employees who work for other people or company. People in E quadrant become the owners of small business. People in B quadrant become the true business owner. People in I quadrant become the investor. Each quadrant has its own uniqueness. You need to study how to make money effectively from each quadrant. If you want to become successful businessman, you should make money from two quadrants at the same time.

The employees (E quadrant) make money from working for other people. Their focus is monthly salary. Once they got the payment for their job, they are allowed to use it for a month, but they need to work again to live in next month. The most important thing for employees is safety. They work hard to get salary in the same amount. They do not really care about business since they only want to work for other people’s business.

The owners of small business (S Quadrant) focus on business success. Although they only have small business, they can still use it to make money. They only have limited customers and profit, but they can still enjoy the freedom. They must not work for other people, but their finance may not be safe. There may be a threat in business, but they do not aware of it.

The true business owner (B quadrant) has big company that is ready to make money automatically. They have system that works for them. They do not worry about the finance since they have strong company to support it. They do nt work for business since other people do it for them. They have system, but they must not spend their time to take care of it.

Investor in the last quadrant may become the most interesting part. Investors have money that works for them. They invest their money and get higher return from it. They can enjoy safety and freedom at the same time. They invest money in safe investment that provides higher return. After that, they only wait until the money comes back to them with larger amount.

As mentioned before, if you want to get business success, you should use the sources of income from two or more quadrants. If you are the business owner, you can use I quadrant to make more money. You can use your company to make money. The profit is then used for another investment. You need to choose safer investment that can bring business success. If you are employee who want to start new business, you can enter S quadrant. You can become businessman without leaving your job. It can be safer to have salary and profit at the same time.

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