6 Reasons Why It’s The Easiest Time To Get Rich
It used to be that the power to start a business that was built on systems—businesses that are representative of the B quadrant in the CASHFLOW® Quadrant—rested with a few. The barrier to entry was high. It was expensive and risky. Of course, the payoff for success was big, which is why many people tried. Unfortunately, many failed.
Take for instance my Velcro-wallet business, my first business. I had to line up manufacturers, negotiate licensing deals, develop sales platforms, create operational efficiencies, and more. A lot of labor was involved, and the learning curve was steep. Thankfully, I had my rich dad to help me along the way, but not everyone was so fortunate. And for many small businesses in the past, the ability to scale was simply not possible. The result was the traditional mom and pop shop on the main street. These businesses were brick and mortar and run by families, much like my rich dad’s family store, which he helped run from his early teenage years on.
Needless to say, in the past, there were many barriers to entry to starting a business. But today, not so much.
Today, thanks to the internet, the world is changing. The internet and computers give us the power to be entrepreneurs. The computer runs your business’ systems. It gives you the ability to communicate and market online through email and social media. It gives you the tools for accounting and access to legal advice. The computer lets you search the whole world for manufacturers.
Today, I believe it’s easier than ever to get rich if you’re financially smart. Here are six reasons why:
- The Internet is making a world of customers available to most of us.
- The Internet is creating more businesses beyond the Internet. Just as Henry Ford created more business because his mass-produced cars had a ripple effect, the Internet will likewise magnify its effect. The Internet makes it possible for 7 billion of us to become a Henry Ford or Bill Gates.
- In the past, the rich and the powerful controlled the media. Now with the Internet, each of us has the power to access different media sites.
- New inventions breed more new inventions. An explosion of new technology makes other areas of our lives better. Each new technological change will allow more people to develop more new and innovative products.
- As more people become prosperous, they will want to invest more and more money into new start-up businesses, not only to help new businesses but also to share in the profits. Today, it is hard for most people to grasp the reality that there are literally tens of billions of dollars looking for new, innovative companies to invest in every year.
- It does not have to be high tech to be a new product. Starbucks made a lot of people rich with just a cup of coffee, and McDonald’s became the largest holder of real estate with just a hamburger and fries.
Today, it is easier than ever to build a successful business that provides cash flow even while you’re sleeping.
The Digital Entrepreneurs Most Powerful Tool
Though the computer is a powerful tool for digital entrepreneurs, it is not the brains. The entrepreneur is the brains and must still provide leadership to build a self-sustaining system.
Not understanding this is why so many digital entrepreneurs fail. They have the technology but they don’t have the smarts. Rather than build a B-quadrant business, they often build an S-quadrant business. They create a job that they own, but not a business. It requires them and their time to exist. If they are not working—often bring the midnight oil—they aren’t making money.
A truly digital business, however, does not need the founder and owner to work in order to make money. The business system continues to run no matter what.
Why Your System Is The Key To Success
The B-I Triangle is a system for building a great business that any entrepreneur should be familiar with. In the internet age, all of the components of the B-I Triangle can be accelerated at a much lower cost.
For instance, it used to be that communicating for a business was very expensive. You had to invest in hardware like phone systems, fax machines, and copiers to do internal communications. To reach your customers, you had to do advertising that was very expensive. Today, for practically nothing, you can email around the world, text on your phone, Skype internationally, and use social media to advertise. And all of these things can be set up in an instant.
The same with systems. Say you wanted to share information with teams across the world a little over a decade ago. You had to invest in an expensive server system. Today, you can use the cloud to share documents and work collaboratively. Or say you wanted to sell products via a catalog. You had to invest in cumbersome order systems, people to man the phones, and a vast supply chain. Today, you can utilize a site like Amazon.com to list, sell, and fulfill your orders—and you can be up and running in a matter of days.
The point is that though the barrier to entry is lower than ever, you must still understand the fundamental systems you need in place to run a successful business. And you must have the brains to find and build out those systems in a sustainable way in the digital world.
Thanks to the Internet, anything you want to learn about can be accessed instantly at your fingertips. And what is more, many of the arduous business processes that made starting a business difficult are now automated; from sales platforms like Shopify to marketing platforms like social media. What used to cost a lot in terms of knowledge, time, and money to set up, are now affordable to almost anyone.
The result of all this is that ideas that once took a large business to execute can now be accomplished by smaller businesses…and they can scale quickly.
Editor, Rich Dad Poor Dad Daily