Wednesday, October 17, 2012

E.S.B.I.

Ok. Ok. I know you like what the heck is E.S.B.I.? Is is an acronym? What is that? Well E.S.B.I. call the Cash Flow Quadrants (Employee, Self-Employed, Business System, Investor. Each letter represents a quadrant in how people earn income.  This idea comes from one of the greatest entrepreneurs of our time, Mr. Robert Kiyosaki.



I'm going to break this down very simple for you all.

Let's start with E which stands for Employee.

96% of people are employees.  They work a job.  There is nothing wrong with working a job, but there is only some much money you can make a job because there are only some many hours you can work and there is only some much money a company is going to pay you.  It doesn't matter if you are an AVP or VP or whatever, there are limits on your income. 

These individuals work for money.

The next letter is S, which stands for Self-Employed.

These are the small business owners such as lawn care, massage therapists, hair stylist.  This group can even include doctors and lawyers.  These individuals are business owners which means no one can control there income.  They can make as much as they want to.  They are in a position where they are selling their smarts and expertise.  Buuuuuut...they still only make money when they are present.  A lawyer doesn't get paid unless they are actively involved in a case.  A massage therapist only gets paid when they are actively massaging someone. 

These individuals make a little bit more money, but they still work for money.

The next letter is B, which stands for Business System.

Now here is where things get interesting become most people think that B stands for business owner. There is a difference between business owner and a business system.  A business system is something like what Ray Kroc and Henry Ford did.  You see neither man was the brightest or smartest man but the both understand that having smarter people around them worked.  They also understood that if they built a business with a SYSTEM where by business never stops would create a cash cow. 

Ray Kroc, the franchiser of McDonald's, saw the restaurant that the McDonald's brothers had in California EVERYWHERE. So he built the number one fast food chain by building a system where the grow of new McDonald's and  repeat customers never stops. Now today there are over 35,000 McDonald's world wide. Every McDonald's you go into look exactly the same...SYSTEM.  

Henry Ford created the assembly line system where cars could be built and pumped out 100's at a time and now today by the 1000's.  Every other car company copied that system, but not quite like Henry Ford. 

Now both men are dead and gone but the systems they created are still alive and well.  And their families are living in wealth because those systems they built are still pumping out income.

People that build business systems can create income by where growth (network) and repeat business (residual income) never stop.

These people have money working for them.  

The final letter is I which stands for Investor.

This is the quadrant where people think they make "easy" money.  They think that can take their money, put it somewhere, let it sit and think it's going to be millions of dollars in a few years. You are all sadly mistaken.  If you want to be a good investor, you will need two thing: lots of DISPOSABLE INCOME and KNOWLEDGE OF THE MARKET!  Where most people mess up is that they are trying to use their job income to invest in the market.  There is more money lost than gained in the investing world.  There is a lot of trial and error in investing.  This is why  you need lots of disposable income that you can afford to lose.  But most people are using the "$50" from their job money trying to invest that they really can afford to lose.

Here is what I suggest you do: build a business system that creates a system by where money never stops coming and then you can invest become the money is being replaced that is being used for risk. 
If you don't know how to do that, you can GO HERE to find out about an industry that will allow you to do that, that is better than you job.  

Once you understand investing, you can do well. 

These individuals have money work for them.

So what we are helping people do is change quadrants.  The same energy you use to work your job (build someone else's business system) you can use part of that income to help change quadrants and business a system where money works for you.  

To you success,

Marlon Hurd
 
 

 


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