Book Review: “Rich Dad’s Before You Quit Your Job: 10 Real-Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business” by Robert T. Kiyosaki

I listened to the abridged audiobook first then read the book later. The audiobook was concise but lack continuity of the book. By far, I believe this is the best of Rich Dad’s books. Robert Kiyosaki offers excellent advises for the entrepreneur-want-to-be. What impressed me the most were: 1. importance of the mission and serving others, 2. difference between job and work, 3. success reveals failures and 4. pricing strategy. The checklist before you quit your job is already worth the price of the book. My summary below:

Entrepreneurs vs. employees (Promoters vs. Trustees)
Promoters are driven by perception of opportunities. Trustees by control of resources.
Promoters’ management structure is flat with multiple informal networks, trustees formalized hierarchy with multiple tiers. Promoters are value driven, performance-based, team-oriented, where trustees are security driven, resource-based, job promotion-oriented.

Lesson #1: A successful business is created before there is a business. Rich Dad’s quote: “Losers quit when they fail. Winner fail until they succeed.” BI triangle: Three sides: Mission, Team, Leadership. Stacked from bottom to top: cash flow, communications, systems, legal, product.

Lesson #2: Learn how to turn bad luck into good luck. Two reasons why entrepreneurs fail: afraid of failing, do not fail enough. “In today’s rapidly changing world the people who are NOT taking risks are the risk takers. People who are NOT taking risks are falling behind. Commit the process: 1. start the business, 2. fail and learn, 3. find a mentor, 4. fail and learn, 5. take some classes, 6. keep failing and learning, 7. stop when successful, 8. celebrate, 9. count your money, the wins and the losses, 10. repeat the process.

Lesson #3: Know the difference between your job and your work. You get paid for a job but not for doing your work. The more homework you do, the more money you earn on your job.

Lesson #4: Success reveals your failures. “The way to stop failing is to fail faster.” Your strengths will reveal your weaknesses. Team Smarts: A-thinker (analytical skills/critical thinker), C-thinker (creative thinker/flexible logic), T-thinker (technical skills/expertise), P-thinker (people skills/personal leadership). Be the best on one of them – develop yourself.

Lesson #5: The process is more important than the goal. The process determines who you become in attaining your goals.

Lesson #6: The best answers are found in your heart not your head. Stronger mission wins in business and in wars. 3 types of money: competitive, cooperative, spiritual money. A mission is about who you do your work for. It’s not about working for yourself. “Your mission starts at your core, in your soul, felt in your heart, and spoken through your actions – not just your words.”

Lesson #7: The scope of the mission determines the product. Focus on fulfilling a mission that solves a problem or fills a need, the money will come. “The more people you serve, the richer you will become.”

Lesson #8: Design a business that can do something that no other business can do. 1. clearly define the mission, goals, and vision of the company. 2. Find the best people and forge them into a team. 3. Strengthen the company on the inside. 4. Expand the company on the outside. 5. Improve the bottom line. 6. Invest in research and development. 7. Invest in tangible assets. 8. Be a good corporate citizen. How to expand a business: 1. replicating the entire B-I triangle. 2. Franchising. 3. Taking the company public through an IPO. 4. Licensing and joint ventures. Single tactic (what you do, Domino’s “pizza in 30 minutes or less”) – multiple strategies (the plan on how to get the tactic done). Always have a low-risk idea to fall back on.

Lesson #9: Don’t fight for the bargain basement. How to find good customers. Be choosy. Rich Dad’s 3 tips about dealing with people. 1. “Pain the ass factor, 2. “hire slow and fire last.” 3. Two kinds of communicators: when unhappy, one would come talk to you face to face, the second one would stab you on your back. Gross margin: 1. finance the rest of the B-I triangle. 2. determine the price of your product, 3. Product and price determine your customers. 5 P’s: product, person, price, place and position.

Lesson #10: Know when to quit. 1. Check your attitude. Need to love the business. 2. Get as much experience as possible on five levels of B-I triangle. 3. Always remember that sales = income. 4. Be optimistic as well as brutally honest with yourself. 5. How are you spending money? 6. Start a business to practice on. 7. Be willing to ask for help. 8. Find a mentor. 9. Join a entrepreneur network. 10. Be faithful to the process.

Mission => Process => Goal.