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How to be a successful business owner

Credit: Richdad.com

The importance of business systems and how to own them

Often, when people are trained to be employees or self-employed, E’s and S’s on the left side of the CASHFLOW® Quadrant, they find it hard to transition to the right side of the quadrant, to become a Business Owner (B) and Investor (I). It’s usually a lack of knowledge, not passion, that prohibits people from learning how to become a business owner.

But if you want to be truly wealthy and financially free, it’s imperative that you move to the right side of the CASHFLOW Quadrant. The best way to do this is to move from an E or and S to a B. Where it previously required a lot of capital to begin a business, it’s no longer the 10- to 20-year investment of time and money needed to become a successful business owner.

To be financially free, you must move to the right side of the CASHFLOW Quadrant.

By building a business, you learn a business sense and how to build great systems. And owning a successful business is really owning a successful system and leveraging others to work in that system. That’s the fundamental difference between and E or S and a B. When you start a business, you also learn what makes a business successful—and what makes it unsuccessful. These are key things you’ll need to know to enter the fourth quadrant as a great investor.

Additionally, learning how to run a successful business will give you the cash flow and free time you need to invest well and weather the ups and downs of the market.

How to become a business owner

Want to know how to become a successful business owner? Here are four ways you can thrive in the B quadrant.

1. Buy a franchise

If you don’t want to take the time to build your own business systems, you can buy a franchise. When you buy a franchise, you’re buying into a proven operating system. The advantage of buying a franchise is that you can take the time you’d spend building your systems to focus on developing your team. And because banks like to make loans to businesses with good, proven systems, they’ll often give a loan to a franchise but not to a start-up.

A word of caution: Don’t buy a franchise if you want to do things your own way. You must be ready to do everything the way the franchisors tell you. You don’t call the shots, but you do own the system. If you want to do your own thing, do it after you’ve mastered both building your own system and leading people.

2. Get involved in network marketing

Network marketing often gets a bad rap. Because it’s a newer form of business system, many people look at it suspiciously and think of it as a scam. Initially, I felt this way too. But after dropping my prejudices and doing some research, I found many people who were sincerely and diligently building successful network-marketing businesses that made a positive impact on their financial futures and others’.

For a reasonable entry fee (often around a few hundred bucks), you can buy into an existing system and immediately begin building a business. And because of technology, this can be done almost entirely online and automated. Paperwork, order processing, distribution, accounting, and follow-up are almost entirely managed by the network-marketing software. This allows you to focus on building your business instead of worrying about the normal start-up headaches of a small business.

3. Start your own S-quadrant business

The B-I Triangle, pictured below, is symbolic of what it takes to build a successful business.

The B-I Triangle is what it takes to build a successful business.

You’ll notice the most important component is found at the base in the mission. The least important thing? The product.

Why is that? Well, it seems everyone nowadays is telling you to follow your passion. It reminds me of the saying, “If you do what you love, you’ll never work a day in your life.”

Though this sounds good in theory, it’s not the best advice if you want to become a successful business owner.

The problem with this advice is business owners didn’t become successful because they followed their passions. That might be what they tell you through social media, but more often than not, their business isn’t a success because the owner has an emotional attachment to their product or service.

Successful business owners struggled while learning how to become a successful business owner. They had to put in the time to understand how to manage and optimize systems. They learned, one way or another, how to attract people through modern marketing tactics to buy a product or service. They lived and breathed their target market pain points and discovered—or even invented—solutions to those problems. Successful business owners became so by implementing the proper accounting systems to manage their cash flow. They put money into asset and legal protection to they keep their business assets separate from their personal assets.

The key to becoming a successful business owner

All while building their systems, they also built a strong network of experienced leaders and loyal team members. These valuable groups of people shared and helped execute the business owner’s mission.

When you work for a big corporation, buy into a franchise or join a network marketing venture, you’re following someone else’s mission. It’s predetermined what values you should hold if you want to work for them.M

That’s not the case when you start your own business. The mission, or your why, is the reason behind your business.

So while you need to be passionate about your mission, it’s not the reason people end up buying from you. People will buy your product or service because of what it will do for them.

This is why my rich dad always told me never to fall in love with your product. It’s the least important thing to be a successful business owner.

4. Solopreneur

There is a new business type that has emerged the last few years fueled by the power of the internet labeled the solopreneur.

The solopreneur has grown out of the spirit of an S quadrant, small-business owner. These business owners want to do it all themselves. They were probably the smartest kids in class who breezed through college.

However, a solopreneur isn’t happy with simply doing their own thing. The solopreneur has ambitions that rival those of a traditional big business owner. They don’t just want to service those in their neighborhood or town.

The solopreneur can grow as little or as large as they want to. Where a traditional S, sole-proprietor, owns the bakery around the corner or the small accounting firm across the street, they are limited by how much they can grow. A bakery can only bake so many loaves of bread, an accountant can only handle so many accounts. No matter how popular they are or big they get, they will always be limited by time.

How to become a solopreneur business owner

But a solopreneur is different. Solopreneurs can grow by leveraging services available through the internet that have surpassed the need for dozens, or even hundreds of employees. They aren’t constrained by time in the same way as a small-business owner.

For example, a solopreneur can manage the cash flow of an entire small-business venture with nothing more than a QuickBooks account. This software can easily replace the workload that formerly required an entire accounting department or outside firm.

Referencing the B-I Triangle again, excluding the outer foundational elements, almost everything can be leveraged at scale to aid the solopreneur. Cash flow, communications and systems can all be leveraged through the internet.

Even legal protection can be leveraged through services like LegalZoom. Where you previously needed to hire a lawyer, you can now complete a form and get your company legally established in a matter of minutes.

The product, which alone won’t make a solopreneur a successful business owner, doesn’t even require storage. For many successful solopreneur business owners, the product they sell is digital in nature. They don’t need anything but an idea, a computer, and an internet connection.

Want to become a business owner quickly? Get educated first

Regardless of whether you plan to stay a solopreneur or expand into the B quadrant, the quickest way to become a successful business owner is get a mentor.

My rich dad was my mentor. A mentor is someone who has already done what you want to do and is successful at doing it. My rich dad taught me about systems and how to be a leader of people, not a manager of people. Managers often see their subordinates as inferiors. Leaders must direct people who are often smarter than they are.

A traditional way to do this is to get your MBA from a prestigious school and then get a fast-track job that takes you up the corporate ladder. An MBA will teach you about the basics of accounting and how the financial numbers relate to your systems, but having an MBA doesn’t mean you’re competent to run a business. You’ll need to spend 10 to 15 years in a company to learn all the different aspects of business. Then, you should plan on leaving to start your own company. Working for a successful major corporation is like being paid by your mentor.

Start today

Today, primarily due to changes in technology, how to become a successful business owner is greatly reduced by technology. The opportunity to build your own or leverage an existing business system is available to virtually everyone. If you want to start your own business, there’s really no excuse not to start today.

Franchises and network marketing solutions took away the hard part of developing your own systems. You acquire the rights to a proven system, and then your only job is to develop your people.

One practical thing you can do today is start learning about business and systems from a mentor and a coach. I had a great mentor and coach when I was building my business, and you need one too. Rich Dad provides both mentoring and coaching for those who want to succeed in business.

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How to hire persons from home

A positive team culture starts (and ends) with the people. That’s why it’s so important – possibly the most crucial step you can take as a manager – to hire people who embody the right qualities for the roles you need to fill.

You’re likely already looking for folks who are responsible, empathetic, have a growth mindset and communicate well. But are these the same qualities you should seek out when hiring for distributed teams, or completely remote positions? And how do you find these elusive remote-friendly employees?

These questions have taken on an added urgency with the onset of the Covid-19 pandemic. Suddenly, remote work is the only game in town. Remote hiring is poised to be more competitive than ever, but there’s also a larger pool of remote workers to hire from than ever before. That’s why we put together this guide to walk you through each step of the remote hiring process: how to find workers, what to look for, what to ask them, and how to close the deal and bring on the best talent.

5 steps to prepare for hiring a remote employee

Let’s start with the basics. Hiring remote employees doesn’t require a complete mindset shift, but it does involve a bit of upfront work to make sure you’re setting new hires up for success. Laying this foundation will help you avoid potential pitfalls along the employment journey.

1. Decide what type of remote situation you’ll be hiring for

First and foremost, you need to ask yourself whether your team will be fully remote or only part-time, work from different offices, or simply have a flexible, work-from-home schedule. If you don’t have policies in place already, start thinking about them now.

Based on your decision, you can decide whether having previous experience working remotely is a necessity. For example, if occasional remote work is more of a perk, you probably don’t need someone who’s been based out of their home office for years. But if you’re building a remote team from scratch, hiring people with remote experience first may be a good idea.

2. Figure out which time zones to hire in

When it comes to collaboration, considering time zone differences becomes crucial. If you cluster employees in a certain time zone, it’s definitely easier to hop on a spontaneous video call or give live, real-time feedback on a project. But you can also set up processes and adopt tools that facilitate asynchronous collaboration, in order to smooth out the challenges of working cross-functionally from different parts of the globe. Weighing the pros and cons of each approach can help you narrow down a list of locations where you can look for potential hires.

3. Choose your tech stack (and get buy-in from potential hires)

To make sure your team is productive no matter what location they’re working from, make sure you choose applications that will make their jobs easier. This means considering a number of different categories of tools: video conferencing, chat, project management, online whiteboard, file management, and more.

4. Learn different communication styles

Time zones aren’t the only barrier to successful communication. If you’re hiring people from different countries and backgrounds, you need to be ready to invest extra time and resources into understanding where they’re coming from, their style of communication, and their approach to work and collaboration.

It may sound like a major challenge, but in the end you can get a major advantage by hiring people with diverse backgrounds, because some studies show that diverse teams are more likely to come up with more creative solutions.

5. Create a budget for IRL (in real life) get-togethers

Fully remote companies like Zapier and Github know that face-time is still vital for teams to bond, collaborate, and understand each other. That’s why they still fly the whole company to one location for a team offsite, annual planning session, or something else.

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How to prepare a resume that will sell

As you already know, hiring managers don’t have time to read through hundreds or even thousands of the resumes that are floating in cyberspace. According to the Rockport Institute, “only one interview is granted for every 200 resumes received by the average employer.” The average time you have to persuade a typical hiring manager to read your resume further is 10 to 20 seconds. That doesn’t allow much time to market yourself does it?

Throughout your job search, use your resume as a way to market yourself. With your resume, you are essentially selling yourself as a product with the goal of scoring an interview. We tend to buy products that are more advertised than the ones that aren’t and the products that we select aren’t always the best products on the market. The same goes for your resume, if you can advertise yourself effectively, you may have a better chance of getting a response than someone who has better credentials. Use your resume as an advertisement that will entice the reader to read further. For example, if you read an ad and it doesn’t catch your eye or spark any interest, you will be reluctant to read on or learn more about it. As a result, you will most likely toss the ad in the trash because the product doesn’t benefit you or your needs. Similarly, if the employer doesn’t like what he or she sees on your resume and doesn’t feel that what you have to offer them matches the needs of their company, it most likely will go in the rejection pile hindering your chances of getting an interview.

Here are 4 tips on how to write a resume that will help increase your marketability:

1. Create a captivating job target.
Since most of us read from top to bottom, one of the first things a hiring manager will most likely read is the job target or what is known as a personal statement. An example of a personal statement could be something like, “Award- winning Scientist with 15 years of experience in Neurobiology and Biochemistry Research.” According to career expert,Anish Majumdar, “Starting with a succinct statement of what you’d like to get out of a position, as well as what attributes you can bring to the table, can really help you stand out from the competition.” In addition, Majumdar also recommends keeping a personal statement brief and targeted towards the types of jobs you are seeking.

2. Focus on the Employer’s Needs, Not Yours.
Focus your attention on what you can do for the company, not what they can do for you. What is the company looking for? Who would be the perfect candidate? What would set you apart from any other candidate? How do your skills match those of the company? Incorporate these thoughts and ideas into your resume.

3. Add testimonials.
To boost your potential as a candidate, add testimonials of two or three people who can vouch for you and include them in your resume. By adding testimonials, your resume will stand out more than a list of references with just names and contact information. If you are uncomfortable with adding testimonials and prefer to use only references, remember to always gather your references beforehand and ask them for their permission when you are ready to send out your resume.

4. Include a Blog.
If you happen to have an industry-related blog site, include this as part of your resume. It will show the employer that you are dedicated to your field, are up to date with current information, and that you spend extra time away from your daily life to maintain your blog. Plus it will provide concrete evidence of your knowledge, skills, and abilities.

Producing a quality and marketable resume may take some time, but the more time you spend perfecting your resume, the better chances you have for potentially landing an interview.