Business of the 21st Century by Robert Kiyosaki – my notes

  • Business
  • 16 min read

Take responsibility of your financial life—or get used to taking orders for the rest of your life. You’re either a master of money or a slave to it. Your choice. This blog post is slightly out of the norm but I uncover the major takeaways from a book i’ve recently read. I am currently going through mentorship and my mentors are part of a HUGE billion dollar corporation called Amway – they reached out to me with a wonderful opportunity that I am definitely going to embark upon. If you would like to know about this opportunity then please click here to contact me so I can forward you to the right people.


The economic crash in 2007-2008, a severe worldwide financial crisis, had took millions of jobs away and those affected were left with little to no money. Robert states that your income didn’t become at risk overnight – it was always at risk. Job security, pension plans and retirement security are all worn out; that was the industrial-age thinking. We are not in the Industrial-Age anymore. We are now in the Information-Age and we need to implement Information-Age thinking.

If you want a solid future, you need to create it. You can take charge of your future only when you take control of your income source. You need to own a business.


A silver lining is a metaphor for optimism in the common English-language which means a negative occurrence may have a positive aspect to it.

“On July 13, 2009, TIME magazine ran a piece on page 2 they called “10 Questions for Robert Kiyosaki.” One of the questions asked of me was this: “Are there opportunities to create new companies in this turbulent economy?”

“ARE YOU KIDDING?” was Robert’s first thought.

THEN ROBERT replied:

“This is the best time. When times are bad is when the real entrepreneurs emerge. Entrepreneurs don’t really care if the market’s up or down. They’re creating better products and better processes. So when somebody says, “Oh, there’s less opportunity now,” it’s because they’re losers.”

Through recession, when the economy is down, entrepreneurial spirits heats up like a stoked-up wood stove on a cold winter night.

Q: What do the Microsoft and Disney empires have in common, besides the fact that they are both hugely successful billion-dollar businesses that have become household names?

A: They both were launched at the time of recession.

Why do companies launch at the time of recession?, because that’s when people wake up and get creative.

The market during tough economic times is ripe for opportunity.

During the recession people are hungrier than ever to earn extra money, and because of that, they are more receptive and more inclined to open their minds to new avenues. The law of receptivity, quoted from The Go-Giver by Bob Burg (2007).

The Law of Receptivity states: “The fifth law: “The law of receptivity”. The key to effective giving is to stay open for receiving. Your receptivity is your ability and willingness to take in information or ideas.”

That almost explains why I was searching for a solid opportunity to build my own business. In times of UNCERTAINTY (such as the unfortunate COVID-19) you can leverage and build a successful enterprise!


“Where you are on the ladder doesn’t really matter. What matters is the question that you may have forgotten to stop and ask before putting in all that time and effort climbing: Where is this ladder planted?”

“But even more important than the quantity of money you make is the quality of money you make. In other words, not just how much you make, but how you make it—where it comes from.”

Is your ladder planted in a business environment where you are the employee?

Cash flow quadrant (in other words, different income worlds):

  • E = Employee (in other words Security) – The thought of the Industrial Age, “Go school, work hard so you can get a successful financially fulfilling job.”
  • S (in other words Independence) = Self-employed or Small-business owner – Driven by the urge of more freedom and self-determination. Strike out on your own and achieve “THE AMERICAN DREAM”. S quadrant is typically a trap, you’ve only changed bosses, the only difference is that now you have no one else to blame. The S quadrant can be a thankless and a difficult place to live. The government picks on you (everyone picks on you) – you spend one full day a week just in tax compliance.

In a very real way, the S stands for slavery: You don’t really own your business; your business owns you.

  • B (in other words Wealth Building) = Business owner – The B quadrant is where people go to create big businesses. The difference between an S business and a B business is that you work for your S business, but your B business works for you. Those who live and work in the B quadrant make themselves recession-proof, because they control the source of their own income.
  • I (in other words Financial Freedom) = Investor – Investments, they are not rocket science:

My rich dad taught me to live in the I quadrant by playing Monopoly, and we all know how that works: four green houses, one red hotel; four green houses, one red hotel

“Which quadrant do you live in? In other words, from which quadrant do you receive the majority of the income on which you live?”

Most of the people that want a better successful financially fulfilling life, they change jobs. But what they need to do is change quadrants.

Breaking away from those typical job structures and creating your own stream of income puts you in the best position to weather an economic storm, simply because you are no longer dependent on a boss or on the economy to determine your annual income. Now you determine it.

On the other hand, the right-hand side—the B and I quadrants—is where freedom resides. If you want to live on that side, then you can make it happen. But if you want the relative safety of the left-hand side, then maybe what I have to share here is not for you. That’s a decision only you can make.Which quadrant do you live in? Which quadrant do you want to live in?

PART FOUR – Your Core Financial Values

The four quadrants are not just four different businesses structures, but it is even more than that, it is four different mindsets.

Someone in the E quadrant may say it’s quite risky building a business. Someone in the S quadrant may say “if you want it done right, do it yourself”. Someone in the B quadrant may say “I’m looking for the best people to join my team”. Someone in the I quadrant may say “How much return of my investment will I get?”.

Statistics show that 90 percent of all businesses fail in the first five years.

Desire to adopt the mindset of an entrepreneur. Entrepreneurial spirit comes down to this: An entrepreneur is self-determining. You make things happen and you do not get to blame anyone or anything outside yourself.

If it doesn’t take wealth to make money and it doesn’t take a formal education, then what does it take to become financially free? It takes a dream, a lot of determination, a willingness to learn quickly, and an understanding of which sector of the cash-flow-quadrant you belong to.

1 in three franchises go broke.

PART 9 – ASSET #1: A real-world business education.

If you want to be financially successful, there are three different types of education you require: scholastic, professional, and financial education. Scholastic education teaches you how to read, write, and do math. It is a very important education, especially in today’s world. rofessional education teaches you how to work for money. In other words, it prepares you for life in the E and S quadrants. inancial education is where you learn to have money work for you rather than to have you work for money.

Where on earth will you find a business that will invest the time in your education and personal development as well as help you actually build your business? In network marketing, that’s where.

Here are some critical skills that the real-world education of network marketing teaches:

  • An attitude of success
  • Dressing for success
  • Overcoming personal fears, doubts and lack of confidence
  • Overcoming the fear of rejection
  • Communication skills
  • People skills
  • Time-management skills
  • Accountability skills
  • Practical goal-setting
  • Money-management skills
  • Investing skills

Good network marketing companies provide a solid program of training in all these areas. In fact, you’d be hard-pressed to find a situation anywhere else where you could pay good money to gain all this training – let alone a situation where they pay you to learn it.

There is a common expression in network marketing, that it’s a business “where you earn while you learn”. It’s a great saying, because it clearly underlines the key point about the business model: you learn to do it by doing it, not by sitting in a classroom for years hearing someone talk about doing it.

Network marketing is a real-world business school for

people who want to learn the real-world skills of an

entrepreneur, rather than the skills of an employee.

PART 10 – ASSET #2: a profitable path of personal development

Network marketing gives you the opportunity to face your fears, deal with them, overcome them, and bring out the winner that you have living inside you.

PART 11 – ASSET #3: A circle of friends who share your dreams and values.

This may be tough to hear, but if you want to create a different economy in your life, you may need to get new friends more than you need to get a new job. Why? Because even though they love you, and even though they don’t mean to, the friends you hang with right now might be holding you down.

Network marketing not only provides a great business

education, it also provides a whole-new world of

friends—friends who are going in the same direction as

you are and share the same core values as you do.

CHAPTER 12 – ASSET #4 – The Power of your own network

The power is not in the product; the power is in the network. If you want to become rich, the best strategy is to find a way to build a strong, viable, growing network.

Robert Kiyosaki’s dad told him that the richest people in the world, build networks. Everyone else looks for work. A franchise is a type of business network in which multiple business owners all work off the same blueprint. Franchising was just one step in the process of developing networks in the business world. It’s really an entirely different way of looking at business—one that reflects an Information-Age economy through networking rather than an Industrial-Age economy through centralized mass-advertising.

After franchising, the next step in the development of networked businesses began in the 1960s and really got under way in the 1970s and ’80s. Instead of a network of franchised businesses, this model built itself through a network of franchised individuals. In a sense, you could call this a “personal franchise.” Like the original franchise model, this new type of business also came under a lot of criticism; yet, despite its critics, it has survived and thrived. That model is called network marketing.

The truth about franchising is that as a franchise owner, you are part of a network- but you do not own the network; you own only your particular business. However, as a network marketer, you don’t just build the network but you own your network. Owning the network gives tremendous financial leverage.

Though, as a network marketer you have to personally harness the power of Metcalfe’s Law. “Metcalfe’s Law” says that a network’s value is proportional to the square of the number of nodes in the network. The nodes could be computers, servers and simply users. For example, if a network has 10 nodes then its inherent value is 100. Non-linear, exponential, growth. To harness the power of Metcalfe’s Law, you have to grow the network.

The moment there are two of you, the economic value of your network is squared. When there are three of you, the economic value of your network goes from four to nine. You are working arithmetically, but your economic value is growing exponentially.

PART 13 – ASSET #5: A Duplicable, Fully Scalable Business

There are very few entrepreneurs who grasp how to design their tiny little business model so it can be multiplied and replicated many times over without their direct participation.

As a network marketer, your job description, so to speak, is to connect with people, invite them to experience the products you are excited about and take a look at the information you have, and then follow up with them. Then, once they’ve decided to join you in the business, you share with them your enthusiasm, your experiences, and you help them learn to do what you have learned to do. Your job is to build relationships, have conversations, explore possibilities, get to know people, and help them get to understand what this business is all about.

PART 14 – ASSET #6: Incomparable leadership skills

Leadership is the force that makes it all come together. Leadership is what builds great businesses. Leadership is the sheer force of the vision you share. Genuine leaders can move mountains. All great leaders have been master storytellers who were able to communicate the vision in such a vivid way that others saw it too. Communication affects every aspect of life—and this is the No.1 skill that network marketing teaches.

Network marketing tends to develop the type of leader who influences others by being a great teacher, teaching others to fulfil their life’s dreams by teaching others to go for their dreams. You need to control your mental, emotional, spiritual and physical attributes in order to succeed.

PART 15 – ASSET #7: a mechanism for genuine wealth creation

Wealth is not the same thing as money. Wealth is not measured by the size of income. Wealth is measured in time. Wealth is measured by the richness of your life experience today plus the number of days into the future that you have the capacity to continue living at that level of experience

Robert T Kiyosaki and his wife used a simple-four-step plan to retire young and rich:

1) Build a business – tax laws in the US is more favourable. A business is like a child, it takes time to grow. While it can take less time, getting a business off the ground typically takes about five years.

2) Reinvest in your business – a lot of first-time network marketers make the mistake of using their new business as a means to buy luxuries. Instead, once your business provides a stream of income, reinvest that money in order for the business to grow bigger. For the most part, though, network marketing is a business whose major capital investment is not your money but your time and effort.

3) Invest in real estate: The idea here is to use your new supplemental money to build an income-generating asset. There are two benefits in real estate: tax laws in the us are written in favour of business owners who invest in real estate. Your banker loves to lend you money for real estate. The purpose of buying real estate is not to sell it; the purpose of buying real estate is to build an income-generating asset.

4) Let your assets buy luxuries: You use your income to build your assets—your business and real estate investments—and then, once they’re sufficiently built to be able to do so, you let them buy your luxuries.


Big people have big dreams and small people have small dreams. If you want to change who you are, begin by changing the size of your dream.”

PART 17 – A business where women excel by Kim Kiyosaki

The supporting, coaching, nurturing relationship of a network marketing sponsor to her growing network of apprentice networkers is the kind of relationship and interaction in which women excel.

When you look at the basic statistical profile of the network marketing

community, one of the first things you notice is also one of the most remarkable: It is populated by more than four times as many women as men.

PART 18 – choose wisely

So you’ve decided to do start your own network marketing business. Congratulations! Now you face a choice. There are several thousand network marketing companies in operation. Which one are you going to join? And how do you choose?

On what criteria do you base your decision?

“When I was investigating different network marketing companies, I often heard this comment. The people anxious to show me their business opportunity would tell me stories of people making hundreds of thousands of dollars a month from their business. Because I have met people who really do make hundreds of thousands of dollars a month from their network marketing business, I don’t doubt its massive earning potential.”

“When choosing a company to work with, the product is not the most important consideration.”

Does the Company Have a Strong, High-Quality, and Highly Marketable Product Line That You Can Be Passionate About?



Ten thousand hours: Do the math. If you work eight hours

a day, five days a week, you hit the 10,000-hour mark after five years of full-time effort.

PART 20 – Living the life

It is not real estate, gold, stocks, hard work, or money that makes you rich; it is what you know about real estate, gold, stocks, hard work, and money that makes you rich. Ultimately, it is your financial intelligence that makes you rich.

Be smart with your money, don’t focus on wants.

PART 21 – The business of the 21st century

By its very nature and design, network marketing is a strikingly fair, democratic, socially responsible system of generating wealth.

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