Financial Education Video - How to Raise Capital: The #1 Skill of an Entrepreneur

hello robert kiyosaki again and this is installment three and it's my sharing information about what my seminar will be about how to raise capital the number one skill of an entrepreneur to be held May 1st 2nd 3rd 2009 Scottsdale Arizona price is $5,000 so thank you for listening and I will share some of the insights I've learned over the years on raising capital again is the most important skill I have and just to reiterate was in nineteen próxima 1975 I came out with this product and we were extremely successful but we kept running out of money the more successful we got the more we ran out of money so that's when I went to my rich debt I tried to borrow $100,000 and he chewed me out he says why would I invest in a dumb product when you have a bad business and so that's what that's when he began teach me the next level of my entrepreneurial education it's not about the product it's about how to design a business that doesn't need me to keep raising the capital in other words how do you design a business that keeps raising money automatically and today the Rich Dad company is cash rich cash keeps pouring in because the ability to raise money constantly with designed into the business and once again this is the diagram this is the BI triangle these are the eight pieces that make up a business when a business is hurting oftentimes is because one of these eight pieces is missing for example many times people to have a great product but their legal is really bad or this communication systems are bad or their audit you know their internal order processing is a bad well the manufacturing is bad or the marketing is bad and they want to have bad cash flow management so part of the three day we will be discussing going into depth how you put a solid business structure together because this is it there's trillions one and I'll try but billions of dollars out there looking for a home but they don't invest in products and that was my Rich Dad lesson sophisticated investors invest in a well-designed business so with that I'll go into a little more on what would be covering on our three-day and some of you who are familiar with my work understand this when you look at a financial statement let's say this is this is income expense asset liability okay and as I explained in Rich Dad Poor Dad your house is not an asset so basically is most people have a house they think as an asset but every month is costing them money through a thing called a mortgage payment that's why they're broke so what makes a person rich like what makes me rich is very simply I have assets such as businesses I have the rich dad business every month lots of money comes in I also have real estate I also have stocks and bonds and I have commodities such as I am a partner in oil companies and every month the cash flows into me so this is the model of a rich person whether I work or not money comes in okay and that's what makes me rich most people all they have is a mortgage payment car payment college loan payments and all that that's a poor person okay so what makes the same thing that makes a rich person rich and what makes a well-designed business rich is that as a sophisticated investor let's say this is a rich business when I wrote the business plan for Rich Dad Poor Dad this company now is that I had to design in assets so one of the biggest light one of the biggest assets rich that has is we are a brain and and we license our name so all over the world there's about 60 people who every month send me money it was designed into the business plan for example with Rich Dad Poor Dad every month people like in Japan and China and Asia and Europe every month they send me money the second thing is every time I write a book every month money comes in when I design my board game every month money comes in and whatever what else we have well we have seminars more money comes in so every month the business of Rich Dad gets richer and richer because we're constantly setting up more assets so what makes a person rich is the same thing that makes a business rich so when I designed the Rich Dad Company I designed it to be a rich company once I designed this it was very easy to raise capital capital poured in because sophisticated inventors people in the B and I side of the quadrant saw that I knew how to build a rich stable company so today the Rich Dad Company has zero debt and just tons of cash flow coming in regardless if I work or not so I hope that makes sense to you is every month or every year the Rich Dad company is working to more add more assets to the business so in this economic downfall downturn money still comes in when I designed my villa CRO company I designed a wallet and it was sold once it was sold there was no more income coming in it was a poorly designed business and that's why my Rich Dad would didn't want to invest my wallet company but the Rich Dad company because the Rich Dad company is building assets all the time it gets to be richer and richer and richer so in final statement so so if I don't like to point out so finally I have to point out one more thing that makes a company rich or poor is business design the reason it's hard for most people to raise capital I don't care if it's real estate or what it's very simply because most people operate here there is no asset the only asset is the entrepreneur who's working hard like if I owned the pizza shop I have to be there 24/7 or responsible for it there's no sense investing in it there's no sense investing it the other thing too if you have a service business like remember Arthur Andersen was a huge accounting firm the moment they had a ran into a problems with Enron scandal the whole business folded the reason Arthur Andersen went down was because they were a service building business they were a big business but they had tons of accountants working for them and so the problem with this is like Arthur Andersen is their assets went home every night they had no real asset so once again people go home the Rich Dad company gets stronger because we really do have assets people can come and go but the business has assets a thing keeps running the final thing is this it's the same thing Ken McIlroy the ABCs of real estate my partner in real estate deals his business is exactly the same so the key to raising money this is Ken McIlroy's company is called MC companies ken McIlroy's business is in the business of acquiring assets that's why his company gets richer and richer and richer every year he adds probably a thousand new apartment units to his inventory so Ken's company gets richer and richer because MC core company is designed to increase assets poorly designed businesses never have any assets they have huge liabilities I trust that make sense to you can macro voice business get stronger and stronger and stronger because every year she's increasing more assets the Rich Dad company gets stronger and stronger and stronger because every year we add more assets this year we're adding franchising to a mix we're also you know rich brother rich sister the book has come out we come out with the real book of real estate etc etc and every one of those products every year continues to send money into our product so that's an idea of a well-designed business if you have a well designed business I don't care it's for real estate or making you know cash flow board games if it's well designed investors will put give money to you because this is a well designed business so that's that's what I'm talking so that's this is installment three on how to raise capital gives you an idea what makes us different again thank you for listening so far even if you do not come I trust you've learned something by listening to what makes certain businesses stronger than others why certain business are weaker than others and so again the price is $5,000 but there's discounts for people who have attended our seminars before or people who sign up early and especially you insiders because you are best guys that we have and so we'll give you a better discount of this price the most important thing is if you're going to be an entrepreneur please come to this course because it is the most important skill about entrepreneurs how to raise capital generally I never repeat any one of these three days I'm not saying that I won't ever but general we don't so if you're not available on this it miss out on this one so I trust you've learned something from this and look forward to installment four which is coming in a few days thank you you

Channel: The Rich Dad Channel

Views: 413,337

Rating: 4.8332086 out of 5

Keywords: financial education, financial literacy, financial freedom, robert kiyosaki, rich dad, kiyosaki, Rich Dad Scam, Rich Dad Scams, Rich Dad Education Scam, Rich Dad Education Scams, TheRichDadChannel

Id: yQLhWtgAT0A

Length: 10min 50sec (650 seconds)

Published: Thu Apr 16 2009