Book Summary: Before You Quit Your Job – by Robert Kiyosaki

This book can be seen as a roadmap of skill sets you need to learn to move from employee to entrepreneur. Several of these classic skills are outlined in the BI triangle which we will discuss in more detail.

Why is this important to me? This really comes down to whether you’re happy where you are. Most people do NOT want the responsibility of running their own business. I can understand that because it is a real concern. If you’ve seen any of my other video summaries, then you know I’m a huge fan of Inversion. Basically, this means that you have to look at both sides of the coin. For people who have never been in business for themselves, there is an optimistic image that you get unlimited freedom, you can choose your own hours, you don’t have to answer to anyone. I can tell you that this is all bullshit. Now let’s get down to business. Why don’t most people want to have their own business? IMHO it all comes down to the myth of security in your current job. This is a myth because your job could be cut tomorrow and then you would have no security. If this is the only reason you stay at your job, then you are trading hours for money. Worse than that, if you hate what you do, you’re building up a store of angst that will only get worse over time and spill over into your personal life. Another reason people don’t get into the business is because it’s too risky. I’m not sure what this really means. I think keeping the job you hate for money is riskier than starting a business and bringing real value to the market. Regardless, this is a real factor, so in your business planning you need to mitigate this risk. One way to do this is to educate yourself on each end of the BI triangle.

The BI triangle is an excellent graphical start to success in business. Let’s talk about this now:

1. Mission – This is at the base because it is the most important thing. This is his passion for the business. What are you passionate about? You need to have a real mission that solves a serious problem in a unique way. The mission is critical to true business success. Without a mission, you can still run a profitable business, but then you’re on the S side of the Cash Flow Quadrant. This means that you basically bought yourself a job.

2. Leadership – For great information on true leadership, you can study any of John C. Maxwell’s books. He is the authority on true leadership. Simply put, with the right mission and a strong leader, he’ll be able to attract the right stakeholders. These include employees, customers, partners, suppliers, and financing. Jim Collins on Good to Great talked about Level 5 leadership. That’s the holy grail. You can refer to that summary for more details. Here are two examples of Level 5 Leaders: Nucor Steel’s Ken Iverson (plain talk – another summary) Kimberly Clark’s Darwin Smith.

3. Team: Team members are critical to the success of the company. You need to have the right people in the right seats on your bus. Without this, you are doomed to mediocrity.

4. Cash Flow: This is based on the inside because without blood, the body dies, so it is with business: without cash flow, it dies.

5. Communications – This is paramount because if you can’t describe and articulate your value, then you’re doomed. You need to know how to sell. You sell to customers, employees, bankers, and other interested parties. You need to refine this if you are going to go into business.

6. Systems: This has to do with infrastructure. You can sell to customers all day, but if you can’t deliver, install, train, bill, and collect the money, the whole process falls apart. Good systems are better than tangible assets. This is where you can gain a lasting competitive advantage over your competitors. Focus here for continuous improvement and your business will grow.

7. Legal – I can write tons of dry pages on legal topics that even the best insurance salespeople will HATE. The bottom line is that your company should be the right entity for tax and protection purposes. You must protect yourself from trade secret theft and non-competition from employees. You have to understand HR issues. Therefore, your legal advisors should be good and educated.

8. Product – Watch how the product lasts. It is an important goal for your business to have some staying power that the product will change. IBM is a great business, but if they put the product first, they would be out of business because punch card computers disappeared in the 1960s.

Let’s move on to 10 tips before you quit your job. The three most important ones are listed on the slide, but I’ll go through the top 10.

1. Check your attitude

2. Get as much experience in the BI triangle as you can

3. Always remember that Sales = Income

4. Be optimistic and brutally honest with yourself.

5. How are you spending your money?

6. Start a practice business

7. Be willing to ask for help

8. Find a mentor

9. Join a network of entrepreneurs 10. Be faithful to the process

The power of associations is powerful. It is said that you can average the income of the top 5 people you partner with and you will fall into that category. To that end, find a mentor and take advantage of PEO: other people’s experience.

Remember that you can do all these things while you are still working. The key is to educate yourself and adopt the right habits so that you understand what you are getting yourself into.

I hope you found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes a habit. Habits are formed in as little as 21 days.

One thing you can take away from this book is ATTITUDE. Please open your eyes and spend a few minutes a day programming your attitude. I know it sounds esoteric, but it has to be done. Most people will try to discourage you from going into business. Short story: my father worked for GM in the 60’s. he found out that he was offered several different jobs/promotions that his boss never told him about. Needless to say, he got out. (I still have the typed resignation letter!). Anyway, my grandfather went crazy because back then GM was security, he must have the job of the century. My father was a businessman ever since. That was absolutely the bravest move because he had two kids and one more on the way when he did it.