your own business

one of the actions that we need to take in moving out from the "rat race" going to the "fast tract", as explained by Robert Kiyosaki of the Rich Dad, Poor Dad, is to have our own business. but how do we look for a business that best suit us? here are some tips on how to look for a business.

how to look for your own business

1. identify people's need or simply create a need.

1.1 identify people's need. before you start any business, ask the market first what they need. ask what is it that they need and what they want that you can help provide. start a business that has an immediate market to avoid difficulty in selling. The basic needs are food, shelter and clothing.

1.2 create a need. if you happen to have a products or services that is not need-based you will still need to educate the people on why they have to purchase your products or services. You must create awareness. You must come up with a good marketing strategy and advertise your business.

2. find your core gifts/interests. start from your hobby. if you like cross-stitching, beads making, baking, etc., your family, friends and neighbors like it and asks for more then maybe you can earn from it. try improving your masterpieces and packaging and charge them. from that you can start your own small business.

3. sell a good/new idea. it maybe an existing product and you added some features. for example: simple "sago", put some flavorings, crushed ice, a bigger straw and a good packaging turned into "zago". other examples are "cooked ice cream", "frozen taho", etc.

4. buy and sell or network marketing. this is the easiest way to start a business. ride form others existing products. try looking for good products and start your buy and sell business. in multi-level marketing or networking, don't concentrate on recruitment but on marketing the products because it is the "bread and butter" of the company.

5. buy an existing business or franchise a business. if you have enough capital to start a business but still confused on how to start one, better buy an existing business or simply franchise a business. you just need to learn the process and follow their system. then improve on how to serve your customers better.

by creating your own business, you're not just creating a source of income for yourself but also create jobs for your fellow countrymen.

financial literacy

this is actually the second part of our financial literacy seminar outline. the first part is the financial stewardship.

the Cashflow Quadrants

according to Robert Kiyosaki of the Rich Dad Poor Dad, there are only four ways how to earn.

1. be an employee. work for somebody for 8 hours a day, 5 to 6 days a week. they are oftentimes forced to render an overtime. sometimes rendering overtime is without pay. their own initiative to meet the deadline or because they cannot cope up with so many pending work. most of the times they have bosses that is so demanding and so irritating. their monthly income is secured but they have no control over their time. they have no freedom and they work for money.

2. be self-employed. they are their own boss. most people in this group are the professionals: doctors, lawyers, architects, accountants, etc. some works at home or have small businesses like tailors, sari-sari store owners, balut and taho ventors, taxi owners who drive their own taxi, among others. though a little higher in status than the employee, a self-employed person still needs to wake up early, do their routine and stuff and work or else they don't earn. meaning, they still work for money.

3. be a businessman/entrepreneur. this is much better than the other two. businessmen/entrepreneurs create businesses and jobs. they create money and wealth. they hire people who are competent enough to run their businesses. they hire experts that require less supervision. their business is in autopilot. this will give them enough time to look for more opportunities and time for their families.

4. be an investor. they make their money work for them. they use their money to earn more money. they create passive income. they invest in other peoples businesses, they invest in real estates, stocks, bonds and mutual funds. they don't need to wake up early. they control their time. they can spend their month-long vacation and still earn. this is freedom--financial freedom.

the first two groups, the employed and self-employed, are placed at the left side of the quadrant. while the remaining two, the businessmen/entrepreneurs and the investors, are placed at the right. Kiyosaki called the left side as the "rat race" while the other side as the "fast tract".

financial literacy is the key for people to move from the rat race to the fast tract. they need to be prudent, disciplined, and the will to save and invest. it takes a lot of hard work and guts. dream big but start small. learn from failures and improvise.

source: Robert Kiyosaki, Rich Dad Poor Dad and Larry Gamboa, Think Rich, Pinoy!