I’ve read the works of Robert Kiyosaki lately, two of his latest best sellers “Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money” and “Rich Dad’s Conspiracy of the Rich: The 8 New Rules of Money“.
Both books stimulated and reminded me of my study and applying that study in the early 2000’s when I was heavily involved in property. It also reminded me that I forgot most of it and put it aside when I became involved with folk who just don’t talk about that sort of thing. That’s been for a few years now!
I’ve also been playing the online version of Cashflow 101 and 202, the board games that very quickly teach you the financial vocabulary you need to get rich and stay rich.
What a relief it has been for me to be back in the vocabulary!
What struck me most of all was the reminder of the 8 elements required for a successful, sustainable business.
There are many authors and many books on how to build a business and there are many ways of combining these factors together. I like these 8 because they are simple and straight forward.
They can be applied to my personal life as well as my business.
The 8 elements:
4. Cash flow
Robert does a very good job explaining these points in his book Conspiracy of the Rich.
Mission – My mission must be one that encompasses both my physical and my metaphysical (spiritual) goals. Be my passion.
Team – Even rowing solo around the world needs a large team of people, leading up to, during and afterwards! We are a social people, working and operating at our best only where we recognize and work in teams.
Leadership – Every ship needs a captain. Someone that does not know all the answers, or gives all the orders and may do very little, except this: they can see the direction of the team, now and into the future, just by looking around them, seeing what others can’t (or often won’t). A true leader is there for the success of the mission, for the success of the team. Not for themselves.
Cash flow – With the first three founding structures in place, identifying, making and managing the cash flow is the key chapter of business integrity. Know where it comes from, know where it is going. Manage it. Make it. This is the lifeblood of the operation.
Communications – Talking. We are talking social beings and business is between people. We like to talk and learn most about our world from it. (Movies and music are testament to that). Selling your services, products, benefits is what communication is all about.
Systems – All the elements of the enterprise must run in synchronicity with each other, therefore reliable, repeatable processes must exist that “take care of business” all day, everyday.
Legal – Following the rules is the only way to create a fulfilling long-term establishment. Learn them, understand how to apply and run according to my mission with the rules in mind.
Product – Last and supported by all other elements of the business is the product or service that is created. It must have integrity, and alignment with the Mission. If not, no one will pay for my product.
There. A helpful reminder.