Saturday, 25 January 2014

b.Cash-Flow Quadrants Revisited

The last part is here:   The Balance of Business Power

Robert Kiyosaki described (I am not sure he was the first, but I heard about this first from him) the cash-flow quadrants.

I have no intention to talk about investors and business owners. They are more or less established. So no point discussing the obvious.

Being an employee is not wrong. But, once one hits 35-40yo, he/she would be retrenched for younger blood. Further in about 30 years to go, more than 50% of the current jobs would be replaced by machines. It is therefore imperative that one must try not to be an employee. I saw so many negative examples. When they were retrenched, they couldn't face life properly and still tried very hard to rejoin the work force. This position was stated by me many times before. So up to this point, I have produced no new stuff.

So the next step is for those retrenched to start their self-employed step. The problem is they are already 20-30 years late. Nowadays, job specification is so heavy that an individual would take at least 20 years to hone. So a simple mis-step like getting employed would drive a deadly blow to one's prospect.

Employed versus Self-Employed:   Some argued that during employment, one can accumulate cash for subsequent business investment. Further, by joining a large corporation, one can speed-learn things. WRONG! Most hyper-business creation are very low on capital but high in knowledge, but need hours and hours of refinement. Examples are softwares/apps for mobiles, these apps don't require much infrastructure but time on station. If you have produced whatsapp, then there is nothing much further you need to do.

Employees I have mentioned before that they are usually paid very badly, way below replacement value, i.e., their time on station is not rewarded with equivalent monetary value. Hence, the longer one plies the trade, one is being disadvantaged more.

In exchange, if one were to start on the self-employment path. The starting is going to be super tough. But, because one started on very low base, no car, no house, no gf and stay at parents' place, chances are that he will survive and grow his weapon-of-choice. I presumed he doesn't have a diamond/gold/silver spoon to start with. Because he is so fucked up that he poses no threat to any one. He is therefore likely to survive like grass next to the trees. Given a good 10 years, being very focused, he will make it. He will start to see money coming his way.

He would face the first test in life. Whether he should flaunt his cash by buying fancy cars or houses or start to own the place he worked. The correct answer is buy the workshop that he works in. In time, if he doesn't do it early enough, he would be fucked big time.

This unfortunately is a very bitter path. This poor guy has no spare cash, no fancy cars, no love-nest, in short, he would be considered a very bad roughneck. Very few gals would be able to see through his potential. But, given another 10-20 years, he will fruit the best tree in town. He would have reached 40-50 years of age. I believe even at this age, there are still plenty of syts (sweet young things) waiting to be picked.

The set-back of this approach is that he will sire kids that are still very young. But, don't worry, with the longevity approach I have designed along the way. he would be alright. His kids would not need to be miserable starting from square one. His kids would be full of power and little toys.

The most powerful concept behind this approach is that you own the production unit in its entirety. You will continue to churn out products after products and no landlord or fuckens can touch you. Because you control the products' quality and pricing, you would be given a chance to live. For example, if you own the humble birdhouse in Indonesia, your birds would give you birdnests every single month, you may or may not be able to sell them for super high price, but you can always sell them at basement price (a price that every one would deem it cheap and just grab). With that, you would still be in good subsistence, i.e., you would be allowed to live and fight another day. Your only cost is power needed to sing a song to the birds, which is low compared to the selling price of the birdnests. 

So start it right! Be an entrepreneur from day one, there is nothing to learn from the world. You just need to learn to hunt all alone in this world.

It is extremely lonely, but I still believe there would be a gal in this world that would understand me completely. Never mind, if I was fucked so many times previously. The end result is not too important, but I do enjoy this cute journey. 

Nowadays I only want to eat the things I grew, drink the drinks I made, wear the fur I plucked, and only walk within the land of my choice.


No comments:

Post a Comment