Have you been to the Rumba?

About once every month the Rumba is Host to a Smooth Chicago Jazz show. These shows feature the very best in Smooth Jazz Talent while enjoying an outstanding fine dining experience. Great music and great food served in an elegant setting that is sure to please. The service is top notch and valet parking is available. Click on the photo for upcoming events and reservations.

There is a better way!

So we talked about the right side of the cash flow quadrant. We need a business that is capable of producing income even if we are not there. It can’t be dependent on us but rather use leverage to compliment us. This is no easy task but the good news is that there are a lot of options available.

Now, with that being said, don’t quit your job (if you have one) just yet. Most of us have never owned our own business so this will be a process. We need to evaluate the options that are out there but more importantly, we need to prepare ourselves mentally and emotionally for the journey that we are about to embark on. This is not a get rich quick scheme. This is about serious people starting their own business in spite of not having access to a lot of money. So by now you probably are saying, “get on with it already!”.

OK, but first a little back ground on how I arrived at this conclusion. I mentioned earlier that I had read Robert Kiyosaki’s best seller “Cash Flow Quadrant”. This opened my eye’s and got me starting to think differently about making money. I decided that I should try to start a “Plan B” so I could move to the right side of the quadrant. The vehicle that I decided on was Real Estate. Over the course of the next year or so I actually purchased three properties in my area. These were distressed properties that I bought below market value and after “Rehabbing” them was going to “Flip” for profit. The first property was exciting and when it sold we made a modest profit but we learned a lot. The second property was in a great neighborhood and needed a lot of work. We did our scope of work, hired the contractors and got it done on time and almost on budget. By this time the market was starting to slide but we got it sold eventually. We didn’t get anywhere near what it was worth but we didn’t lose any money either. Once again, we learned a lot! The third property came out beautiful. Everything was new. A three bedroom brick ranch with new floors, new kitchen, Granite counter tops and maple cabinets. New bathrooms with ceramic tile and everything else you would want. Unfortunately by this time the market had really gone south. After several months on the market the holding cost were killing us. Summer turned into winter and I found myself shoveling two drives every time the snow fell. Eventually we had to accept an offer far below market value. The buyer got a great deal and I went to the closing and had to write a check. Ouch!

The good news is that I don’t quit easy. About this time I discovered another book from Mr. kiyosaki. This one was titled, “The business of the 21st Century”. This book showed me how to get my own business started for less than the cost of the new front door that I put on that last house. More importantly, it created cash flow almost instantly and has allowed my wife to stay home and raise our family. Stay tuned and I will share with you the path our journey has taken us on.

There’s gotta be a better way!

As we were saying, the whole go to school, get good grades and get a good job plan seems to be coming up short for a lot of people these days. The rules that we were raised on have changed. We need to adjust and play by these new rules. In short, we need to take responsibility for our success both in the short term and for the future.

A while back I was reading Robert Kiyosaki’s “Cash Flow Quadrant”. If you have not read this book I highly recommend it. In his book, Mr. Kiyosaki outlines what the cash flow quadrant involves. He asserts that we all fall into one or more of the four categories making up the quadrant. The top left corner of the quadrant is occupied by the “Employee” category. The bottom left corner is inhabited by those that are “Self Employed”. The top right corner of the quadrant is home to “Big Business” while the lower right corner is for “Investors”.

Now, while wealth and happiness can be found in any quadrant, we quickly learn that the right side has several significant advantages. Let’s take a brief look at each corner.

The “E” or employee quadrant is where most people currently operate. People in this group have a job and with that comes the bad news. The typical employee has a boss that makes decisions for them like how much they get paid, when they work and when they play. This group has taxes taken from their pay at the highest rates before they even get to see the check.  Then they pay their expenses with the leftovers if you will.

The “S” or self employed quadrant is made up of plumbers, doctors, shop owners, etc. A lot of these individuals were previously “employees” in that same field and decided to start their own business so they could be their own boss. While this is very common a lot of these folks soon discover that they have created a business that is extremely dependent on them. The 40 hour a week job has turned into an 80 hour a week monster. Forget about calling in sick or taking a vacation, if you’re not there nothing gets done and the cash flow stops.

The “B” or Big Business quadrant is comprised of companies of substantial size, say 500 or more employees. Having a business of this size introduces leverage into the equation.  How do you know if you have leverage? That’s easy, if you can spend a sunny day on the beach or golf course while others are laboring to make you money, you have leverage!  You also have more tax advantages than the aforementioned employees. The business brings in cash, expenses are paid and then taxes are paid on what’s left.

The “I” or investor quadrant means having your money work for you. You invest it in other people’s efforts and it creates cash flow so you don’t have to work.

The trick is moving ourselves to the quadrants on the right side. The question is how we can do that with limited time, money and resources. Is it possible? I believe it is, stay tuned.

Is there a better way?

Is there a better way? Most of us were taught to go to school, get good grades and get a good job. The idea was to work at a company for long enough that you could build a nest egg that would provide an adequate living for you and your spouse during your “Golden Years”. Throw in the pension plans that were standard back in the day and you were set.

Now this is fine and dandy but let’s face it, things have changed. Many of the employers that were considered by most to be rock steady have experienced major struggles. What were once Fortune Five Hundred Companies are now fortunate to still be in business companies. Major manufacturers that used to employ thousands of Americans have left our country in search of “cheap” labor overseas. We all know family and friends that have been down sized, right sized and cap sized. Remember your 401K? Turns out some of the K’s have gone missing!

Many have changed “careers” and in the process experienced significant pay reductions. If you’re out of work and over 50 good luck. Technology has rendered our skills obsolete. Nothing like manual labor with a bad back and a side of humility.

Starting your own business could be a solution but where do you start? A start up is risky and could deplete what money you do have in a matter of months. Partnering up with a friend or relative might get things going but it can be a tremendous strain on the relationship. A proven franchise is a good way to reduce the risk but less risk usually means significant upfront cash.

You could go back to school to improve your skills and then get in line behind the thousands of other college graduates that can’t find work either. Maybe you could move to the Boom Town of Williston, North Dakota. Rumor has it there’s more work than you could shake a stick at! Fast food restaurants paying $14 an hour even if you don’t have a degree. Just pack up the kids and sell your house for about 25% less than you owe on it and get going!

There’s gotta be a better way. I like the idea of having my own business but I don’t have a lot of time or money to invest. I want all the tax advantages with out all the head aches. I want something that has stood the test of time but still has a huge market. A business that everyone needs, but most are unaware it even exist. Something that I can build in my spare time over the next five to ten years that will pay me for the rest of my life.  Does it even exist? I believe it does, stay tuned.