Robert Kiyosaki’s Business Secrets - Robert Kiyosaki

Summary

The speaker shares his journey to financial independence, co-authoring 'Rich Dad Poor Dad' with the goal of retiring early through entrepreneurship and real estate investment. He recounts the book's initial rejection by publishers and eventual success after self-publishing. The speaker emphasizes the importance of hard work, learning from failures, and smart money management. He also discusses the cash flow quadrant, highlighting the mindset differences between employees, self-employed individuals, big business owners, and investors.

Takeaways

• 🚀 The author of 'Rich Dad Poor Dad' aimed to retire early without relying on traditional retirement plans like 401k or IRAs, and successfully did so through entrepreneurship and real estate investments.
• 🏡 The book 'Rich Dad Poor Dad' was written in a remote area without TV or radio, symbolizing a focus on creation and self-reliance.
• 📚 Initially, the book faced rejection from publishers, highlighting the challenges authors face in the traditional publishing industry.
• 🔄 The author's first business venture with nylon wallets failed, teaching valuable lessons about market demand and the importance of adaptability.
• 👟 A shift in strategy led to the creation of the shoe pocket, which became a success after being featured in Playboy, demonstrating the power of innovation and marketing.
• 💼 The author emphasizes the importance of hard work and being proactive, such as starting work on Sunday nights to gain an advantage during the workweek.
• 🤝 Volunteering for charity was a strategy used to improve sales skills and mindset, showing that personal growth can come from unexpected places.
• 💡 The 'Cash Flow Quadrant' is a key concept introduced, explaining the different paths to financial success based on one's role in the economy: employee, self-employed, business owner, or investor.
• 💼 The author advocates for being an 'insider' investor, seeking to understand and participate in businesses at a deeper level rather than being a passive outsider.
• 🏢 The success of brands like Apple, Disney, and McDonald's is attributed to their status as 'B' quadrant businesses, which focus on building strong brands and scalable systems.
• 💰 The script underscores the importance of managing and investing money wisely, rather than just earning a high income, to achieve financial freedom.

Q & A

What was the goal of the author and his wife, Kim?

The goal was to retire in 10 years, which was much earlier than the typical retirement age of 65 or 70.

How did the author and Kim achieve their early retirement goal?

They became entrepreneurs and investors in real estate, which allowed the author to retire at 47 and Kim at 37.

Why did the author move to Bisbee, Arizona?

He believed Bisbee to be a beautiful town with perfect weather and chose it as a place to build a house and learn construction skills.

What did the author do in Bisbee that led to the creation of 'Rich Dad Poor Dad'?

He bought a stagecoach depot and converted it into a house. The isolation and lack of distractions allowed him to write the book.

How did the author initially attempt to publish 'Rich Dad Poor Dad'?

He shopped the book to all the publishers in New York City, but they all rejected it.

What unconventional method did the author use to sell his book after the rejections?

He placed the book for sale in a car wash owned by his friend in Austin, Texas.

Who was the first person to buy a large quantity of 'Rich Dad Poor Dad' after the car wash sale?

Bill Galvin, a diamond with Amway, bought the remaining books and helped distribute them worldwide.

What was the first business venture of the author and how did it initially fare?

The first business was a nylon velcro surface business selling wallets, which initially did not sell well and put them in financial trouble.

How did the author turn the failure of his first business into success?

He designed a shoe pocket after reading about a jogger's problem with keys, which became popular after being featured in Playboy magazine.

What was the author's strategy to increase sales and income?

He and his friend Larry worked on Sundays to prepare for the week and volunteered for charity to make more sales calls, which increased their effectiveness during the day.

What is the significance of the Cash Flow Quadrant diagram mentioned in the script?

The Cash Flow Quadrant is a tool used by the author's rich dad to illustrate different types of income earners: employees, self-employed, big business owners, and investors.

What is the key difference between an 'S' and a 'B' in the Cash Flow Quadrant?

An 'S' refers to self-employed individuals or small business owners who can do their job on their own, while a 'B' refers to big business owners with 500 or more employees, often associated with building a brand.

Why did the author emphasize the importance of failing and making sales calls?

The author believes that making more sales calls and experiencing failures helps to improve one's sales skills and ultimately leads to more income.

What business model does the author claim to follow in 'Rich Dad Poor Dad'?

The author states that he follows the McDonald's system of business, which is primarily a real estate business that generates income to invest in more properties.

How does the author differentiate between being an entrepreneur and an investor?

The author sees himself as an investor because he generates money through entrepreneurship to invest in real estate, gold, and silver, rather than focusing solely on running a business.

What is the author's view on the relationship between taxes and income?

The author believes that the average person's income is limited by the taxes they pay, and by reducing taxes, one can increase their income and invest more.