In the book Rich Dad’s CASHFLOW Quadrant, Robert Kiyosaki talks about 4 ways people make money:
(E) Employees - You have a job
(S) Self-Employed - You own a job
(B) Business Owner - You own a system.
(I) Investor - Money works for you.
The biggest takeaway from the book is the use of the word "system," because its depicted as the bridge between a life of working for money (E+S), and one where money works for you (B+I). It's a simple concept to grasp on its face, but one that's difficult to master. Especially in the realm of building wealth.
But building an empire on the back of systems extends to other areas of your life too. Going way further than just growing businesses. They help us get ahead by making compounding progress on our goals and avoiding double work. After some time, we develop a portfolio of systems that take us to that next level.
Just think about it; Once a system is mastered and can run on its own with virtually zero input from your end, you're free to put your energy towards something else. All while reaping the same rewards.
In his book, Kiyosaki talks about owning systems to get rich. Now, I'm not rich, but I do understand the power of systems. Which, in my opinion, are the secret to seeing major growth in your life quickly and comfortably. I look up to entrepreneurs who operate various businesses, digest a ton of information, all while somehow having time left to spend with their friends, families, and community. These individuals obviously understand the power of systems, and take advantage of them so they can focus on what really matters.
There's a reason why big wigs have other people filter their emails for them. Just like how every great superstar has a mega team behind the curtain who's responsible for making the brand's business run.
The Kiyosaki pitch:
Most Americans work for their paycheck, exchanging time for money. Some employees will just do as their told, while others will eventually take on more responsibility in their current job or start a brand new business all on their own. Either way, the individual has gone from quadrant E to quadrant S.
The S quadrant is defined in the book as "working harder and working longer," because this is often what happens to the self-employed upon accepting more responsibility. Yes, they typically have more control and flexibility in their positions compared to someone in the E quadrant, but what they won't realize till later is that their chances of moving to the B quadrant is only getting harder by the day.
The reason? These people are really, really good at what they do, so it becomes virtually impossible to replace them as time goes on. The problem? They own the job, not the system.
Those in the S quadrant have a great life in the beginning when they're energized, motivated, and loving the hours and challenge. But all that changes when they're ready for something else - like spending more time at home with the family. To achieve this new desirable lifestyle, the S starts to fantasize about becoming a B.
Unfortunately, many who find themselves in this scenario get stuck, because going from and S to a B requires teaching and employing someone new to do all the work you were doing. A task that's impossible without the use of systems.
Think about it this way: If an S leaves his business for a year, it fails. But if a B leaves her business for a year, it will grow and be more profitable upon her return. Why? Because the B hired well, built a "secret sauce" formula for success, and implemented it well into her business. Thanks to those efforts, she's now a proud business owner, and no longer has to work for her money because other people do.
See the difference?
Bar Rescue Case Study:
At the start of almost every episode of Bar Rescue, we're introduced to what was once a high-energy and profitable bar. Now, it's losing money, with the primary reason stemming from a lack of systems.
The bar owner wants freedom. He wants to go from an S to a B but knows that things will not run properly when he's not around. Because of that, he must be present at all times to ensure his bar remains profitable. That reason alone is why you'll see 50-60 something bar owners working around the clock every episode. They may be Bs on paper, but they are nothing more than an S in how they exchange their time for money.
Put simply, they're stuck! So they put in a call to John Taffer. When he arrives, Taffer always teaches one main thing; The value of systems.
At the end of the good episodes, there is 6-month post Taffer update that says the bar owner is spending more time with their family. These episodes make me the happiest, because that my friends, is the indicator that the entrepreneur we just followed for an hour finally made it from an S to a B.
Taffer helped them create systems that were strong enough to be passed along, and now the bar owner has graduated from someone who owned a job to someone who owns a system.
Start Thinking In Systems:
All in all, systems are always worth the investment. Once perfected, they take the "You" out of the equation, while allowing for the same results at a fraction of the input. My examples above focused on building businesses, but the practice of creating systems extends into all walks of life. Here are some more examples:
(1) Hire a VA to filter your emails for you.
(2) Earn passive income by selling digital products online.
(3) Use MailBrew to consolidate all your newsletters into one place.
(4) Create a daily routine for certain projects like Machiavelli.
(5) Spend less time on the internet by filtering your news like this.
(6) Batch time to knock out tasks like James O'Keefe.