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Unfair Advantage B’s and I’s work to create or acquire assets, which is why they pay less in taxes. B’s and I’s focus here: BALANCE SHEET Assets

B-I

Liabilities

Business Real estate Paper assets Commodities

True Capitalist All the shining stars in the B and I quadrants are capitalists, individuals who took their idea, created a business, and used OPM to grow their business. They spent their time thinking big and focusing on asset creation, which makes it easier to attract capital. The tough part about being in the S quadrant is that there is very little OPM for growth capital because the entrepreneur’s business is small and the S may think too small. There is very little growth potential and too much risk to attract investment capital. That is why most in the S quadrant seek SBA (Small Business Administration) loans that are backed by the government. True capitalists invest in assets, not people. Most schools do a pretty good job of training students for the E and S quadrants. For example, most universities have MBA programs for students who aspire to be president or CEO of a major corporation, a business that is already built. Most MBA students become employees rather than entrepreneurs because they do not understand the B quadrant. Most recent graduates of MBA programs do not know how to raise capital or how to build assets. The ability to raise capital is the most important skill of an entrepreneur. The inability to raise capital keeps most small businesses small. Traditional education has great law schools for people who want to be lawyers, and medical schools for those who want to be doctors. There are excellent trade schools training students to be chefs, 67

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Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

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