In the next lesson, I’m going to get more specific about exactly what kind of business we’re going to build, but first we need to get past a fork in the road.
You’ve decided that you really do want to make money on the internet, and now there are two paths set before us…
(Watch this video…)
Main points: Self employment vs. Business ownership. For many years I didn’t understand the difference. It will be beneficial for you to understand it before embarking on this business venture.
Cashflow Quadrant by Robert Kiyosaki: Employee, Self Employed, Business Owner, Investor
Each of these four quadrants make money in different ways.
Employees… You get paid for your time. You’re trading hours for dollars. You’re working for someone else, and in return they give you a paycheck.
Self employed people work for themselves. Like employees, they often trade their hours for dollars. Or perhaps they work for a fee or a commission. There are many examples of self employment, such as construction contractors, consultants, realtors, and even doctors in many cases. They’re not working for someone else, but their income is primarily dependant on themselves doing the work.
Business owners use leverage to make money. Most commonly, they hire people and leverage other people’s time. That way, the business owner doesn’t have to do the work and they can scale their business larger. The benefits of being a Business Owner rather than self employed are generally more freedom and ultimately more wealth.
Investor’s let their money do the work. They put their money to work making more money.
MYTH: You’re not making enough money. FACT: You need to be a better investor.
the Investor quadrant is for everyone.
If your goal is to never work, then ideally you need to end up in the Business Owner quadrant, not the self employed quadrant.
Virtually any self employment situation can be turned into a business owner situation if you know how.
The business model I’m going to teach you is really a combination of the self employment and business owner quadrants. And it’s going to be up to you if you want to fully leave the self employment quadrant and hire people to do the work that I’m going to be teaching you how to do.
1) If you haven’t read Cashflow Quadrant, read it. You can most likely pick it up at your local library for free, otherwise you can pick up a copy of it here on Amazon.
2) Determine which quadrant(s) you are currently in, and which one(s) you WANT to be in.
There’s no right or wrong answer, because it’s really a matter of personal preference regarding how you want to spend your time and how you want to make money.
As always, you are welcome to post your questions and comments below.
Have a great day!