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KJ SOMAIYA COLLEGE OF SCIENCE
& COMMERCE
(AUTONOMOUS)
REPORT ON BOOK REVIEW
BOOK: Before you quit your job
AUTHOR: ROBERT.T.KIYOSAKI
NAME: Mustafa Changi
SEAT NO. 13-8806
ROLL NO. 06
SUBJECT: Indian Management Thoughts and Practices
TYBMS
SEM –VI

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INDEX
1. About the author
2. Theme of the book
3. How others praised the book
4. Objectives
5. Introduction to ‘MAVERICK’
6. Points of focus
7. Personal opinion & review
8. Conclusion

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About the author:-
Robert Toru Kiyosaki (born April 8, 1947) is an American investor, businessman, self-
help author, motivational speaker, financial literacy activist, and financial commentator.
Kiyosaki is well known for his Rich Dad Poor Dad series of motivational books and other
material published under the Rich Dad brand. He has written over 15 books which have
combined sales of over 26 million copies.
Three of his books, Rich Dad Poor Dad, Rich Dad's CASHFLOW Quadrant, and Rich Dad's
Guide to Investing, have been on number one on the top 10 best-seller lists simultaneously
on The Wall Street Journal, USA Today and the New York Times. Rich Kid Smart Kid was
published in 2001, with the intent to help parents teach their children financial concepts. He
has created three "Cash flow" board and software games for adults and children and has a
series of "Rich Dad" CDs and disks.
A financial literacy advocate, Kiyosaki has been a proponent of entrepreneurship, business
education, investing, and that comprehensive financial literacy concepts should be taught in
schools around the world. Kiyosaki also operates his own blog and maintains a monthly
column on Yahoo Finance writing about his latest thoughts on global economics, investing,
business, world financial markets, and personal finance
.

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About the book
This book is another in the Rich Dad Poor Dad series. In it Kiyosaki explores what it takes to
transition from employee to entrepreneur and from entrepreneur to business leader. He
identifies and debunks the excuses people give for not acting on their dreams, He also
identifies the roadblocks that people put in their own way by not thinking clearly about what
it will really take to make an idea a profitable reality.
Among the vital lessons Kiyosaki wants us to learn are:
1. A successful entrepreneur finds the right idea, the right people to act on the idea, and the
right money to leverage the whole project.
2. A successful entrepreneur operates from freedom and opportunity rather than security and
resources.
3. The best time to answer the tough questions about starting a business -- is before you start
the business -- not when you're in the middle of it. Some of these questions are:
a. How badly do I want my own business? Why?
b. How much will I extend myself to succeed?
c. Am I afraid to fail? If so, how can I make this a strength?
d. Am I willing to educate myself on the essential components of a successful business
(defining and describing team, leadership, mission and understanding product, legal, systems,
communications, and cash flow)?
4. Learn how to turn bad luck into good luck.
The book is filled with easy-to-understand, but sometimes hard-to-apply advice. But hard
only in the sense that most of us do not like asking ourselves the hard questions -- and then
acting on those answers. However, would-be entrepreneurs can accelerate their success by a
thoughtful reading and application of this book and its principles..

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Introduction by the author
. The real secret to making money and reaching financial independence is not staying an
employee, but starting a company and quickly developing it. Rich Dad's Before You Quit
Your Job is for aspiring entrepreneurs who need to know how to take those first crucial steps.
"What is the Difference between an Employee and Entrepreneur?"
Starting with the Right Mind-set
When I was growing up, my poor dad often said, "Go to school, get good grades, so you can
find a good job with good benefits." He was encouraging me to become an employee.
My rich dad often said, "Learn to build your own business and hire good people." He was
encouraging me to become an entrepreneur. One day I asked my rich dad what the difference
was between an employee and an entrepreneur. His reply was, "Employees look for a job
after the business is built. An entrepreneur's work begins before there is a business."
99% Failure Rate
Statistics show that 90% of all new businesses fail within the first five years. Statistics also
show that 90% of the 10% that survive the first five years, fail before their tenth anniversary.
In other words, approximately 99% of all startup businesses fail within ten years. Why?
While the reasons are many, the following are some of the more critical ones.
1. Our schools train students to be employees who look for jobs rather than train
entrepreneurs who create jobs and businesses.
2. The skills to be a good employee are not the same skills required to be a good
entrepreneur.
3. Many entrepreneurs fail to build a business. Instead they work hard building a job that they
own. They become self-employed rather than business owners.
4. Many entrepreneurs work longer hours and are paid less per hour than their employees.
Hence, many quit out of exhaustion.

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The CASHFLOW Quadrant
As I mentioned in the introduction, the CASHFLOW Quadrant explains that there are four
different types of people that make up the world of business and they are often technically,
emotionally, and mentally different people.
E stands for employee.,
S stands for self-employed or small business owner.
B stands for big business owner (over five hundred employees).
I stand for investor.
For example, an employee will always say the same words, whether he or she is the president
or janitor of the company. An employee can always be heard saying, "I'm looking for a safe
secure job with benefits." The operative words are safe and secure. In other words, the
emotion of fear often keeps them boxed in that quadrant. If they want to change quadrants,
not only are there skills and technical things to learn, in many cases there are also emotional
challenges to overcome.
A person in the S quadrant may be heard saying, "If you want it done right, do it yourself." In
many cases this person's challenge is learning to trust other people to do a better job than he
or she can. This lack of trust often keeps them small, since it's hard to grow a business
without eventually trusting other people. If S quadrant people do grow, they often grow as a
partnership, which in many cases is a group of Ss binding together to do the same job.
B quadrant people are always looking for good people and good business systems. They do
not necessarily want to do the work. They want to build a business to do the work. A true B
Quadrant entrepreneur can grow his or her business all over the world. An S quadrant
entrepreneur is often restricted to a small area, an area he or she can personally control. Of
course, there are always exceptions.
An I quadrant person, the investor, is looking for a smart S or B to take care of his or her
money and grow it.
In training his son and me, rich dad was training us to first build a successful S quadrant
business that had the capability of expanding into a successful B quadrant business. That is
what this book is about.

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Intro: Before You Quit Your Job – 10 Real-Life lessons Every Entrepreneur Should Know
About Building a Multimillion Dollar Business – Written by Robert Kiyosaki This book can
be seen as a road map of skill sets you need to learn in order to go from Employee to
Entrepreneur. Several of these classic skills are outlined in the BI triangle which we will
discuss in more detail.

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The path to entrepreneurship is like a trek through the wilderness. If you want to survive and
successfully reach your destination you must prepare beforehand. Before you go hiking
through the woods, you pack carefully to make sure that you have all of the things you need
to survive the trip. You think about the obstacles and dangers that you are likely to encounter.
You check the weather report. You make sure you bring the right clothing, equipment, food,
and water. The journey into entrepreneurship requires the same sort of careful planning. What
preparation is necessary to put yourself in the best position to succeed?
• You start by being sure that you have the right mind-set-that you think like an entrepreneur
instead of an employee.
• You do your homework-study the market, your target customers, and the competition.
• You identify the skills needed for a successful business in that market, and assemble a team
of coventurers and advisors that provide the skills you need.
• You identify some advantage over the competition and ways to distinguish yourself from
them in the minds of potential customers.
• You put together a business plan mapping out your route to success.
• You lay the proper legal foundation for your business. What do we mean by legal
foundation? Here are some examples:
• You choose a form of legal entity for the business that provides the best limitation of
liability and minimizes taxes (refer to Garrett Sutton's Rich Dad Advisor book Own Your
Own Corporation, Warner Books).
• You obtain all necessary licenses and permits, making sure that clear and complete written
agreements are in place to avoid any future misunderstandings.

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Create a Business or Create a Job?
Robert talks about the self-employed entrepreneur who builds a small business around him-
or herself. This is probably an entrepreneur who owns a job, not a business. Rich dad has a
rule of thumb about this distinction between a job and a business. If you can leave your
business for a year and come back and find it stronger and bigger, you have created a big
business, a B quadrant business. If you cannot, you may have created a job, or an S quadrant
small business. For example, many lawyers or accountants become so successful that their
clients only want to do business with them. The more successful they become, the less time
they have. They own a job, not a business. There's a distinct difference between the two.
This is not to say that you cannot build a business around your expertise and creativity. You
simply have to find a way to leverage your expertise and creativity-create systems that let
others (your employees or coventurers) apply your expertise and creativity.
WHAT IS YOUR PERSONALREASON FOR STARTINGA BUSINESS?
As we begin this book about becoming an entrepreneur, it is important to understand your
personal motivation for wanting to build a business. Ask yourself the following questions:
1. Why do I want to own my own business?
2. How badly do I want to own my own business?
3. At what level of play do I want to play the game?
4. At what level of play am I willing to extend myself to play the game?
5. Am I willing to spend the time to learn about other successful entrepreneurs and their
businesses?
6. Am I afraid to fail?
7. Can I turn my fear of failing into a strength that will help me drive the business?
8. Can I learn from my mistakes?
9. Can I build a team, or do I like to work by myself?
10. Am I willing to pay the price?

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11. Am I willing to put in the time now to be rewarded later?
12. Am I willing to delay financial rewards until the business succeeds, or do I need a
paycheck?
As you are answering these questions, if you are still determined to start a business,take it one
step further and ask yourself the following questions:
• What have been your greatest successes?
• What have been your greatest failures?
• How many times have you worked for free?
• Would you work for this company even if you were not paid?
• Are your family and friends emotionally supportive of your efforts in this venture?
• Are you willing to educate yourself in all the areas of the B-I Triangle (essential
components of a successful business-to be discussed and reviewed throughout this book)?

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The BI triangle is an excellent pictorial start of being successful in business. Lets discuss this
now:
1.Mission – This is at the base because it is most important. This is your 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. Mission is critical for true business success. Without
mission you can still have a profitable business but then you are on the S side of the Cash
Flow Quadrant. This means 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. In a nutshell, with the right mission
and a strong leader, you will be able to attract the right stakeholders. These include
employees, customers, partners, vendors and financing. Jim Collins in Good to Great talked
about Level 5 leadership. That is the holy grail. You can check out that summary for more
detail. Here are two examples of Level 5 Leaders: Nucor Steel’s Ken Iverson (Plain Talk –
another summary) Kimberly Clark’s Darwin Smith.
3.Team – The team members are key to the success of the enterprise. You need to have the
right people in the right seats on your bus. Without this then you are doomed to mediocrity.

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4.Cash Flow – This is at the inside based because without blood the body dies so goes it with
the business – without flowing money, it dies.
5.Communications – This is paramount because if you can not describe and articulate your
value then you are doomed. You need to know how to sell. You sell to customers, employees,
bankers and other stakeholders. You need to refine this if you are going into business.
6.Systems – this has to do with infrastructure. You can sell a customers all day but if you can
not deliver, install, train, bill and collect the money then the whole process crumbles. Good
systems are better than hard assets. This is where you can gain a durable competitive
advantage over your competitors. Focus here for continuous improvement and your business
will grow.
7.Legal – I can write tons of dry pages about legal stuff that even the best insurance salesmen
will HATE. Bottom line is that your business must have be the right entity for protection and
tax purposes. You must protect yourself from trade secret theft and non-competes from
employees. You have to understand HR issues. Thus your legal advisors need to be good and
educated.
8.Product – Notice how product is last. It is important but for your business to have any
staying power than the product will change. IBM is a great business but if they put the
product first then they would be out of business because punch card computers disappeared in
the 60’s.

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What Kind of Business Do You Want to Build?
As part of my entrepreneurial training with rich dad, he encouraged his son and me to go out
and study as many different types of business systems as we could. He said, "How can you be
an entrepreneur designing a business if you do not know about the different types of
businesses and entrepreneurs?"
Self-Employed Entrepreneurs
Rich dad was adamant in explaining that many entrepreneurs were not business owners but
self-employed entrepreneurs-entrepreneurs who owned a job, not a business. He said, "You
are probably self-employed when your name is the name of the business; your income stops
if you stop working; if clients come to see you; your employees call you if there is a problem.
You may also be self-employed if you are the smartest, most talented, or the best educated
person in your business."
He had nothing against self-employed entrepreneurs. He simply wanted us to know the
difference between entrepreneurs who own businesses and those who own jobs. Consultants,
musicians, actors, cleaning people, restaurant owners, small shop owners, and most small
business people fall into owning jobs instead of businesses, or the S quadrant.
The main point rich dad was making about the difference between a self-employed
entrepreneur and a big-business entrepreneur was that many self-employed businesses have a
tough time growing into a big business. In other words they have a real challenge going from
the S quadrant to the B quadrant. Why? Again the answer is that the business was poorly
designed before there was a business. It was doomed before it was even started.
Rich dad himself started out as a self-employed entrepreneur in the S quadrant. Yet in his
mind, he was designing a very large business, run by people much smarter and more capable
than him. Before he started his business, he designed his S quadrant business to be able to
grow into the B quadrant.
Professionals and Tradespeople

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He also wanted us to know that many professional people such as doctors, lawyers,
accountants, architects, plumbers, and electricians started a self-employed style of business
based on a profession or a technical trade. Many of these professions and trades require
government licenses to operate. Also included in this category are professional salespeople,
many of whom are licensed independent consultants, such as real estate, insurance, and
securities salespeople. Many of these types of people are technically self-employed
entrepreneurs, aka independent contractors.
The problem with this type of business is that there is not really a business to sell because
there really isn't a business outside the individual owner. In many cases, there really isn't an
asset. The business owner is the asset. If he or she does sell, he or she will not typically get
the higher multiples a true B quadrant business can command. In addition, he or she may
have to agree to "stay on" for the successful continuation of the business. In essence they go
from being the owner to the buyer's employee.
In my rich dad's mind, it made no sense to work hard and not build an asset. This is why he
advised his son and me against ever wanting to become employees. He said, "Why work hard
building nothing?"
Later in this book, we will go into some ways this type of entrepreneur can create a business
asset-an asset they can build and maybe sell someday.
Mom and Pop Operations
A very large category of entrepreneurs is often referred to as Mom and Pop businesses. This
type of business gets its name because many small businesses are family businesses. As an
example, my mom's mom owned a little convenience store that the family took turns working
in.
The challenge for growth in a Mom and Pop operation is nepotism. Many people put their
children in charge of the business, even though their children may be incompetent, because
blood is thicker than water. Often the children don't share the passion for the business that
their parents had or they don't have the entrepreneurial drive to lead the business.
Franchises

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A franchise, such as McDonald's, is in theory a turnkey operation. The entrepreneur sells a
ready-made business to a person who does not want to go through the creative and
development phase of starting a business. It's like being an instant entrepreneur. One
advantage to some franchises is that banks are more inclined to lend money to someone who
wants to buy a franchise than to a person who wants to start a business from scratch. The
banks are more comfortable with the successful track record of other similar franchises and
the banks value the mentoring programs that most franchises have to assist the new
entrepreneur.
One of the biggest problems with big-name franchises is that they are generally more
expensive to get into and have little flexibility for a want-to-be entrepreneur. Franchises are
the type of businesses that typically face legal issues and often end up in court. These fights
are some of the most vicious fights in the business world.
Reportedly one of the main reasons for fighting is that people who buy a franchise business
do not want to run it the way the franchisor, the person who created the business, wants them
to run it. Another reason is if the franchise does not do well financially, the franchisee wants
to blame the franchisor for the lack of business success. If you do not want to follow the
directions of the franchisor to a tee, it is best you design, create, and start your own business.
Network Marketing and Direct Sales
The network marketing and direct sales industry is recognized by many to be the fastest-
growing business model in the world today. It is also the most controversial. Many people
still have a negative reaction, claiming that many network marketing organizations are
pyramid schemes. Yet in reality, the biggest pyramid scheme in the world is the traditional
big business corporation, with one person at the top and all the workers below.
Everyone who wants to be an entrepreneur should take a look at a network marketing
business. Some of the biggest Fortune 500 companies, such as CitiBank, Avon, Levis, and
Smith Barney, distribute their products through a network marketing or direct sales system.
We are not members of any one network marketing or direct marketing business, but we do
speak favorably of the industry. People who want to be entrepreneurs should consider joining
one of these businesses before they quit their jobs. Why? Many of these companies provide
essential sales, business building, and leadership skills not found anywhere else. One of the

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most valuable benefits from associating with a reputable organization is that it teaches the
mind-set as well as the courage required to become an entrepreneur. You will also become
more familiar with the systems required to build a successful business. The entry fee is
typically quite reasonable and the education can be priceless. (To further explain the
educational value of such types of business, we wrote a small book entitled The Business
School: For People Who Like Helping People [Warner Books]. For more information on this
book, please go to our website, www.Richdad.com.)
If I were starting my entrepreneurial career all over again, I would start with a network
marketing or direct sales business, not for the money but for the real world business training I
could receive, training similar to the type of training my rich dad gave me.
Legal Thieves
One of the more interesting discussions Mike and I had with rich dad involved the subject of
entrepreneurs stealing from other entrepreneurs. Rich dad used an accountant working for an
accounting firm as an example. One day the accountant, who was an employee of the firm,
resigned and started his own business with clients he met while an employee of the firm. In
other words, the accountant walked out the firm's door, but took the business with him. Rich
dad said, "While this may not be illegal, it still is stealing." While this is one type of business
design, it is definitely not the kind of entrepreneur he wanted his son and me to be.
Creative Entrepreneurs
The type of entrepreneur he wanted us to be was a creative entrepreneur like Thomas Edison,
Walt Disney, or Steven Jobs. Rich dad said, "It is easy to be a small entrepreneur, like a Mom
and Pop sandwich shop. It is also relatively easy to be an entrepreneur in a trade or a
profession, such as a plumber or dentist. Also it is easy to be a competitive entrepreneur,
someone who sees a good idea, copies the idea, and then competes against the entrepreneur
who created the idea." (In the Rich Dad's Advisors book Protecting Your #1 Asset [Warner
Books], Michael Lechter refers to this type of competitor as "spoilers" and "pirates.") This is
what happened to me when I pioneered the nylon and Velcro wallet business. Once we
created the market and the awareness of this product line, competitors came out of the
woodwork and my little business was squashed. Of course I cannot blame them. I can only
blame myself because once again, I designed the business poorly before there was a business.

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Even though I took a pounding, rich dad was happy that I was learning to be a creative
entrepreneur, rather than a competitive one. He said, "Some entrepreneurs win by creating.
Other entrepreneurs win by copying and competing." He also said, "The riskiest of all types
of entrepreneur is the creative entrepreneur, also known as an innovator."
"Why is the creative entrepreneur the riskiest type to be?" I asked. "Because being creative
means you are often a pioneer. It is easy to copy a successful and proven product. It is also
less risky. If you learn to innovate, create, or invent your way to success, you are an
entrepreneur creating new value rather than an entrepreneur who wins by copying."
Public and Private
The vast majority of businesses large and small are private companies. A large private
company is often referred to as a closely held company. That generally means a company
owned by just a few owners, and ownership interests are not available to the public at large.
A public company is a company that sells shares of the business to the public at large, most
often through stockbrokers and other licensed securities dealers. A public company sells its
shares on a stock exchange like the New York Stock Exchange and operates under much
more stringent rules than private companies.
Rich dad never formed a public company, yet he recommended that Mike and I create one, as
part of our development as entrepreneurs. In 1996, at the same time we were forming The
Rich Dad Company, I was also an investor and involved in forming three public companies.
One company was created to explore for oil, one for gold, and one for silver. The oil
company failed even though it struck oil, which is a story in itself. The gold and silver
companies did find substantial amounts of the gold and silver they were looking for.
Although the oil company failed, the gold and silver companies made the investors a lot of
money.
Working on developing the public companies was a great experience. As rich dad suggested,
I learned a lot and became a better entrepreneur in the process. I found out that the rules are a
lot tougher for a public company, that a public company is actually two different companies
serving two different customers-the real customers and the investors-as well as serving two
bosses, the board of directors and the government securities agency, such as the SEC, the

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Securities Exchange Commission. I also found out about tougher accounting standards and
tougher reporting standards.
When I was first starting out as an entrepreneur, rich dad said, "The dream of many
entrepreneurs is to see the company they formed listed on the stock exchange." Yet, after the
Enron, Arthur Anderson, Worldcom, and Martha Stewart scandals the rules became tighter
and the compliance requirements much more complicated and expensive. The government
was breathing down public companies' backs. Building a public company business wasn't as
much fun as I had expected. Even though I learned a lot, made myself and our investors a lot
of money, became a better entrepreneur, learned how to design a public company, and was
glad I went through the learning process, I doubt if I will ever form a public company again.
That type of business is for a different type of entrepreneur. I can make more money and have
more fun in small closely held private businesses. (If you are interested in more information
on the pros and cons of private businesses and public companies we recommend the Rich
Dad's Advisors book OPM Other People's Money, by Michael Lechter (Warner Business
Books, 2005).
Can Anyone Be an Entrepreneur?
Rich dad wanted his son and me to understand that anyone could be an entrepreneur. Being
an entrepreneur was not that special. He did not want the idea of being an entrepreneur to go
to our heads. He did not want us looking down on anyone or thinking we were better than
other people if we became successful entrepreneurs.
To this he said, "Anyone can be an entrepreneur. Your neighborhood babysitter is an
entrepreneur. So was Henry Ford, founder of the Ford Motor Company. Anyone with a little
initiative can be an entrepreneur. So don't think entrepreneurs are special or better than other
people. Your job is to decide which entrepreneur you most want to be like-the babysitter or
Henry Ford? They both provide a valuable product or service. Both are important to their
customers. Yet they operate in very different spectrums, different bandwidths of
entrepreneurship. It's like the difference between sandlot football, high school football,
college football, and professional football."
With that example, I understood the point rich dad was making. When I was in college in
New York, playing college football, our team had the opportunity to practice with a few
players from a professional football team, the New York Jets. It was a very humbling

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experience. It was soon obvious to all of us on the college football team that while we played
the same game as the pro players, we were playing it at a completely different level of play.
As a linebacker, my first rude awakening was trying to tackle a New York Jets running back
coming through the line. I doubt if he even knew I hit him. He ran right over me. It felt like I
was trying to tackle a charging rhino. I did not hurt him but he definitely hurt me. That
running back and I were about the same size. But after trying to tackle him, I realized the
difference was not physical. It was spiritual. He had the heart, the desire, and gift of natural
talent to be a great player.
The lesson I learned that day is that we both played the same game, but we were not playing
at the same level of play. The same is true in the business world and the game of
entrepreneurship. We can all be entrepreneurs. Being an entrepreneur is not that big a deal. A
better question to be asked in designing a business is, "At what level of play do you want to
play the game?"
Today, older and wiser, I do not have illusions that I would ever be as great an entrepreneur
as Thomas Edison, Henry Ford, Steven Jobs, or Walt Disney. Yet I can still learn from them
and use them as mentors and role models. And that is rich dad's entrepreneurial lesson #1: "A
successful business is created before there is a business."
The most important job of an entrepreneur is to design the business before there is a business.

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Essence of the study
This really comes down to if you are happy where you are at. Most people do NOT want the
responsibility in running there own business. I can understand that because it is a real
concern. If you have seen any of my other video summaries then you know I am a big fan of
Inversion. Basically this means that you need to look at both sides of the coin. For people that
have never been in business for themselves, there is a rosy picture that you get unlimited
freedom, you can pick your own hours, you don’t have to answer to anyone. I can tell you
that this is all crap. Now lets cut to the chase.
Why is it that most people don’t want to own their own business? In my humble opinion it
comes down to the myth of security in there existing job. This is a myth because your job
could be cut tomorrow and then you would not have any security. If this is the only reason
you are staying in your job then you are trading hours for money. Worse than that, if you hate
what you do then you are building up a reserve of angst which will only get worse over time
and spill into your personal life.
Another reason why people don’t go into business is because it is too risky. I am not sure
what this really means. I think keeping the job you hate for money is more risky than going
into business and bringing real value to the market place. Regardless this is a real factor so in
your business planning you should mitigate this risk.