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Chapter Three | What is the CASHFLOW Quadrant?
One more note on the difference between the “S” Quadrant and the
“B” Quadrant
B business owners can go on vacation forever because they own a system, not a job.
If the B is on vacation, the money still comes in.
To be successful as a B requires:
1. Ownership or control of systems, and
2. The ability to lead people.
For S’s to evolve into B’s, they need to convert who they are and what they know into a
system, and many aren’t able to do that. Or they’re often too attached to the system to
let go and let other people in.
Most new entrepreneurs get excited about a new product or an opportunity they think
will make them rich. Unfortunately, many of them focus on the product or opportunity
rather than invest the time designing the business around the product or opportunity.
Before quitting your job, it might be a good idea to find a mentor who has been an
entrepreneur. All too often, people ask business advice from people who have business
experience as an employee, but not as an entrepreneur.
I recommend keeping your daytime job while you start a part-time business—not for the
money, but for the experience. That means, even if your part-time business does not
make any money, you are gaining something far more important than money—real-life
experience. Not only will you learn about business, you will learn a lot about yourself.
Dave Kettner
What is the CASHFLOW Quadrant?
When I first learned about the CASHFLOW Quadrant I was upset. I knew I was in
the “E” quadrant. My eyes were opened and I realized that as an employee I was a
modern day slave.
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