My Guide Creating Your Own Product

Dear Reader,

Around August 1985, I found my passion. My next business was forming in my mind. From 1986 to 1994, Kim and I ran an organization that offered Business School for Entrepreneurs and the Business School for Investors. Instead of your traditional business school, this business school had no prerequisites. We did not require scholastic records. All that was required was the will to learn and the time and money for the courses.

Employing the techniques we had learned, we were able to teach people the basics of accounting and investing—normally a six-month course—in one day.

I often asked myself was, “How can I teach people what I have been teaching in our business schools without my personally teaching them?”

By 1994, our last business school had over 350 people in the class paying $5,000 each to attend. If you do the math, the money was good. What was not good was that there were only 350 people. I knew that if I truly wanted to help those kids in Asia, I was not going to be able to do it doing things the way I was doing them. In other words, I knew it was time to stop and figure out how to go from the S quadrant to the B quadrant. Instead of trying to leap across the Grand Canyon, Kim and I were now ready to climb up the other side. It was time to go through what rich dad called “the eye of the needle.”

We tried training other instructors, but that process was a long, hard, tedious process. It was difficult to find people to go through the training process to become instructors. It was hard to teach other people to teach the way we taught. It’s not easy to get a class of over 300 people to learn accounting and investing in one day. It was almost as tough as teaching them to walk across fire.

After selling the business in 1994, I had time to go back to my question, “How can I teach people what I have been teaching in our business schools without my teaching them?”

Go Through the Eye of the Needle

I moved into the mountains near Bisbee, Arizona, and was secluded enough to begin working on the answer to my question. For two years I worked on the question. When I left Bisbee, I had the rough draft for Rich Dad Poor Dad on my Macintosh computer and a rough sketch with computations for the CASHFLOW® board game. I was going through the eye of the needle and moving from the S quadrant to the B quadrant.

Rich dad had learned about the eye of the needle from Sunday school. He said, “A popular Bible verse goes something like this: ‘It is easier for a camel to pass through the eye of a needle than for a rich man to pass into heaven.’” Rich dad continued, modifying the verse to say, “Forget the camel. If a man can pass through the eye of a needle, he will enter a world of tremendous wealth.”

Now rich dad was a very religious man and was not making fun of the verse. He was simply modifying it to create his own lesson. In business terms, what he meant was that for an entrepreneur to pass through the eye of a needle, the entrepreneur has to leave himself behind.

What passes through the eye of the needle is the entrepreneur’s idea or intellectual property.

There are many examples of entrepreneurs going through the eye of the needle throughout history.

Here are a few:

  • When Henry Ford designed his automobile to be mass-produced, he passed through the eye of the needle. Up until then, most cars were custom-ordered and hand-made.
  • When Steve Jobs and his team at Apple created the iPod, the iPad, the iPhone, and iTunes, they went through the eye of the needle.
  • When someone like Steven Spielberg or George Lucas creates a movie, they, too, go through the eye of the needle.
  • McDonald’s went through the eye of the needle by franchising their hamburger business worldwide.
  • When a network marketer builds a down line of other business owners, he or she goes through the eye of the needle.
  • When investors buy an asset, such as an apartment house that cash flows money into their pocket each and every month, they have gone through the eye of the needle.
  • A politician who uses the media to campaign is going through the eye of the needle. A politician who goes door to door is not.
  • When inventors or authors sell their invention or their book to a large company, which in return pays them royalties, they have gone through the eye of the needle.
  • When I took what I had learned from my rich dad and created the board game and wrote the book, I was going through the eye of the needle. I was getting myself out of the equation.
  • When I created my nylon shoe-pocket wallet for runners and did not first have my idea protected by an intellectual-property attorney, I was not going through the eye of the needle. I was simply giving my idea to my competition and making them rich. They went through the eye of the needle, and I fell into the Grand Canyon. I had a great new product, but without the legal level to protect my product, the B-I Triangle was not complete.

When I returned to Phoenix with a draft of the book and the CASHFLOW® board game in hand, I knew I was making my move to the B quadrant. Kim and I began to design and build a company according to the B-I Triangle. The moment we put our products in the marketplace, the heavens of abundance opened up.

April 8th, 1997 

The product line was officially unveiled on my fiftieth birthday. From the start of The Rich Dad Company, we had a few struggles to breathe life into the business. The main struggles we had were keeping up with demand, traveling the world to open new markets, and counting the money.

In June 2000, the call from The Oprah Winfrey Show came, and the heavens really opened. Kim and I were leaping from S to B.

At this point, I began to better understand what rich dad meant by:

  • Being true to the process
  • The process will give you glimpses of a better future, just to keep you going
  • The power of mastering the B-I Triangle
  • Harnessing the power of the three types of money: competitive, cooperative, and spiritual money
  • Going through the eye of the needle

Rich dad had said to me that once you complete a process, you take the best with you and leave the rest behind. You then move on to the next process.

As Kim and I were going through this learning period, rich dad’s words began to make sense. Suddenly, it dawned on me that I was beginning the best of several processes in my life. I had my experience from the process of going to school, which I really hated. Next were my experiences from the process of being a Marine pilot. Then I had my experiences from learning to be an entrepreneur with my nylon-wallet business. As tough as that nylon-wallet process was, I did have many great experiences to take with me. And now, actually becoming a student of how people learn, all my past experiences were coming together.


Robert Kiyosaki

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

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Robert Kiyosaki

Robert Kiyosaki, author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company.

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