Going Small May Be the Path To Success For Your Business—Robert Kiyosaki

Going Small May Be the Path To Success For Your Business—Robert Kiyosaki

– Fake money, fake teachers, fake assets. In 1971, President Richard
Nixon took the U.S. dollar off the gold standard,
turning the U.S. dollar into fiat money, government money, fake money. In 2008, the world economy crashed when fake assets, fake mortgages and fake financial experts
lead us down a path to ruin. Think about this: why do schools choose not to teach us about money? Why are 78% of all Americans
living paycheck to paycheck? Why are students staggering under a trillion dollars
in student loan debt? Because a fake world
makes the rich, richer and the poor and middle class poorer and that’s exactly how
the government wants it. The only way to protect
yourself is to learn how to separate the real from the fake. Go to richdad.com to
get your copy of “Fake” by Robert Kiyosaki and learn how to spot the manipulation of reality
we live with every day. Don’t get fooled again. Get your copy of “Fake” by
Robert Kiyosaki at richdad.com That’s richdad.com. (funk guitar music) – This is the Rich Dad Radio Show. The good news and bad news about money. Here’s Robert Kiyosaki. – Hello hello hello it’s
Robert Kiyosaki the Rich Dad Radio Show, the good news
and bad news about money. And today we’re gonna be
talking about business and startups and all that stuff. And I think the big
question for today’s program is really, how much is enough? That’s the big question today. How much is enough? And if you’re in the
financial markets like I am most of the time, the
big word that drives most of Wall Street nuts is
a word called, “growth”. They’re always talking about growth. And by the way they define
the word, “recession” as negative growth. So there’s this obsession with growth but also for many men is how much is big, is big-big enough? And all this other stuff and I think it drives people crazy. I think the big thing that
Kim and I are happy about is how much is enough but do you have to be
really rich to be rich? So it’s gonna be an
interesting discussion. Our guest today is Paul Jarvis
he’s a designer and author. He’s the author of the book, “Company of One:Why Staying Small “is the Next Big Thing for Business”. So far all of you there
who wanna be a startup and wanna start the next
Amazon, or Apple, or Google you don’t really have to do that. And Kim and I are living
proof of that, right Kim? – We are. We didn’t have our plan let’s talk about our investment plan. Our plan was to be financially free and financially free meant
we had more money coming in than was going out. It wasn’t to be a mega-millionaire wasn’t to be a billionaire. Actually, none of our
goals were money-driven they were all always mission-driven but financial freedom was huge for us. So one of the things I
wanna say is so many people never start because their
goal is so big and monumental that they don’t know where to begin and so they just never start. – Remember that yoyo from
business school, this young kid he talked about “B-HAG,
B-HAG”, you gotta have a BHAG comes into consult me,
this kid has never started a business, his mother was
still washing his ears I think. What was a BHAG? – BHAG was, “Big, Hairy, Audacious Goal”. – And we looked at him, and here we are we already started the Rich
Dad Company and he goes, “You need a BHAG” and I
said, “God, we’re already “a global company, how much
bigger do you wanna be?” “Nah, you need a big BHAG now”. So I think we’re paying
him $20,000 a session or something and that
was his consulting to us. But anyway, you don’t
have to be big to be rich and all this, and the
funny thing too, the person who brought it in was our ex-partner and Kim and I just have very small goals. It was $120,000 a year. Now for a lot of people that
sounds like a lot of money and it really is, but it’s
not like a lot of money. It’s not like billions,
so our partner says, “Is that all you guys
make, is $120,000 a year?” I was, you say Kim, “Yeah”. To her that wasn’t enough money. – Yeah but what I said
was that’s $10,000 a month coming in every month
but our living expenses were $3,000 a month so right
now, we’re financially free. This was back in ’96, ’97, yeah. – But to her she was shocked, she says, “How can you live on
only $120,000 a year?” Well number one, it was
called passive income it was income from real
estate, which meant we had no tax on it. So it was $120,000 clear
and hers, her husbands, was $350,000 a year, but
it was ordinary income it was income that you had to pay tax on and you had to bust your butt every day. So ladies and gentlemen,
for a lot of people that’ll go, “$120,000″ man,
I’m only making $80,000 a year” it’s not that, a lot of it
is just how you plan on it. How smart are you? You don’t have to make a
lot of money to be free to be rich, and all of this. In fact the old Chinese
proverb goes, “A wealthy man “is a man who has enough”. And that’s all Kim and I
define of how much was enough? So for us, $120,000 a
year, $10,000 a month tax-free was enough, right Kim? – Yeah it was enough, at that point. – Yeah, and it’s wonderful. So anyway, our guest today
is Paul Jarvis he’s been the author of the book,
“Company of One: Why “Staying Small is the Next
Big Thing for Business”. I think that’s a great idea
for you, just starting up. So welcome to the program Paul – Welcome Paul – Yeah, thank you very much for having me. – So why did you write this book, “Company of One: Why Staying Small “is the Next Big Thing for Business” what’s your motivation? Because it’s a lot of
work to write a book. – It definitely is, and
it’s a few years of research and planning and work,
but I really wanted people to, and exactly what both
of you were just talking about for a few minutes,
I think a lot of people see business as working in a certain way where you always have
to be growing and bigger is always better and I’ve
never, I’ve worked for myself for 20 years and have never
found that to be the case. I’ve found that better is
better, more isn’t better they’d be the same word if
they meant the same thing and so I wanted to write
a book that showed people not necessarily that growth is bad because I don’t think growth is bad but just that growth can be questioned and we can determine
what growth makes sense or not for ourselves and I think it was both of you who talked about this for a long time having a purpose and having a mission is so important in business
because that mission can help us figure out,
hey, does this growth line up with my mission? Does this growth line up with my purpose? And if it doesn’t, then
we can just say no to it and that’s perfectly okay. – So in your life, have
you run into people who are obsessed about
growth and all that? – Definitely, all the time. – So who do you run into,
’cause that sounds to me more like, because I read
the financial magazines and watch financial bubble-vision and growth is their
favorite word, that’s all they talk about. But I think that’s a
corporate stock-driven PE ratio type mentality
that’s driving that ’cause it’s not in my thought pattern. So who do you run into
who this word, “growth” – For me, because I work
in tech and I do a lot in the startup world,
venture capital works fairly similar to that where they need to see they’re looking for the next
unicorn, the next company that they can turn into a
billion dollar business at IPO. – Well, the problem with
most unicorns is they have a billion dollar valuation
but they got no income and they got no assets. – Exactly, saying something
is worth a billion dollars and something actually being
worth a billion dollars very very different and not only– – It’s one of the strangest
things I’ve ever seen that a company with nothing
can be called a billion, can be called a unicorn
’cause it’s got a billion dollar valuation that
some person said is worth a billion dollars. That’s amazing, what a world we live in that is amazing. – I know. And not all businesses have to work towards those goals as well. My business doesn’t need
to make a billion dollars. It doesn’t need to make
nearly that to be successful to be profitable. – So Paul we’re talking about
how do you determine enough what is your definition,
or how do you determine or how does somebody
determine enough is for them? – Yeah, and it’s different
for everybody, but I do think determining enough is
kind of the counterbalance or antithesis of this unchecked growth. So for me I just like to
think if I’m a small business and my business is one or
a few people, then enough is, the business has to be
profitable, one, because it’s a business so it
needs to generate profit but it also needs to cover
our life, a comfortable life and I don’t need a lot to
be comfortable in my life but I just need to generate enough revenue and I think, because it’s
different for everyone it depends on where you
live, how many kids you have all of that but, if we
don’t determine that we’re always chasing more,
and more is something we can never reach. More is a line on the horizon
that we could run toward and we’re gonna get sweaty and
you need to drink some water but we’re never gonna get there. – So you’re basically
saying, you gotta question for yourself what is the… how does your life and
business interact together? – Exactly, otherwise you’re always going to be wanting more, otherwise
you’re gonna be forsaking happiness in the present,
for hopefully being happier later, when you have more. For most people more isn’t even defined it’s just, I just want
more and it’s more stuff more income, more revenue, more employees. – Right. And then you
say, for example, Airbnb so Airbnb, they couldn’t
stay too small if they had, as you said, two houses
listed on Airbnb website they’re out of business. So the scale has to be
relative to the mission and the goals of the company. – Exactly. So the purpose of the business should drive the size of it in the market and I think every business should grow and requires growth to
reach its ripe, organic size in the market. Ricardo Semler has
written a ton about this as well where, businesses
need to grow and they need to reach a good, organic
size but then they don’t actually need to keep growing past that they can optimize for where they’re at so yeah, Airbnb, if
they had two properties they wouldn’t be a business but for myself for the businesses that
I run, I don’t need 10 or 1,000 employees, I don’t
need millions or billions in revenue to be profitable
or to have enough. I can make things work for
the size that it needs to be. – It’s a great message. For me it’s kind of interesting that you even wrote the book, because
I don’t disagree with you. I have never understood corporate guys they always talked
about growth or unicorns I’m going, it doesn’t fit my mentality. But I will say this much,
there’s another disease other than just growth and
all this called consumerism. And what happens for a lot
of people, they make a buck they spend 10, they buy a
bigger house, a nicer car. I know so many people, we
have a person who works for us and she, going through college,
she was a teller at a bank and she said it was the most
shocking thing to sit there where she could see the
statement, the bank statement of the person in front of them and they have this huge
Mercedes SUV and big house and they didn’t have two
pennies to rub together. So she says, they walk into
the bank, dripping in bling got the Mercedes, they got
an SUV, got a big house in Boca Raton, and they
got nothing in the bank. That’s another disease, right? – It is and there’s especially
with social media now there’s a lot of people who are fake rich where their social media
feeds show the nice cars or the nice houses, or the fancy clothes and I don’t think debt,
consumer debt doesn’t photograph well for Instagram. So that’s not what’s being shown but then as people who
are consuming that media we see, oh, everybody
else is doing so well and everybody else there are buying all of these things and
everybody else are spending all this money, so maybe I should too and it boggles my mind because for myself I would rather spend less
than I make every month and I think there’s this
thing where as we start to earn more money, which tends to happen in our career path, if we
keep spending more money as we’re earning more
money, we’re not actually making more money, it’s kind of on-par sometimes it out-paces itself – And Paul you make a good
point too in your book ’cause you talk about often
times growth seems like the easier route so
you want more customers spend more money, throw more money at it you want more revenue, spend more. You want a bigger support
team, go buy them. So it’s always like, throw
money or throw growth at the problem and where
you’re saying you can do today with technology and all you can do a whole lot more with less and actually that takes
a little more creativity. – It does. More is always the
easiest answer in business to solve any problem, whereas
it’s not always the smartest. Sometimes maybe growth doesn’t make sense or growth can be, it’s
funny, in writing the book all of the research, all of the studies all of the data I found
didn’t line up with this kind of tired business
advice that more is better and that you need rapid
growth and if we think about rapid growth in any other context it’s pretty much, that’s what cancer is. But in the business world, it’s thought of as something that’s amazing. But in biology or in
anything else, it’s like we need to check this because this isn’t necessarily the best thing. – That’s very very good
information and advice. Once again we’re talking to
Paul Jarvis he’s a designer and author, he’s worked
with clients such as Microsoft, Mercedes
Benz, Mermaid Portfolio and Warner music. Paul’s weekly newsletter is called “The Sunday Dispatches” and he’s the author of a brand new book just released, “Company
of One: Why Staying Small “is the Next Big Thing for Business”. It’s very good advice today,
but it’s more than just for business people, it’s also for people. My new book is coming out, “Fake”. There’s a lot of fake rich out there. There’s a lot of those guys, that’s funny. So anyway, when we come
back, we’ll be talking more to Paul about what you
can do to stay small and still live happily
and what’s enough for you. – And we can also touch on,
what are the four traits of a typical company for
one, because the traits that Paul talks about,
to me, are the traits of any successful person. – You’re listening to
the Rich Dad Radio Show with Robert Kiyosaki. (plucky guitar music) – Don’t be like Charlie. Charlie is that do-it-yourselfer
who does himself in Do it yourselfis good for tile and grout. It is not good for asset protection. Charlie thought he’d save a few dollars forming his LLC online. With no guidance, he did it wrong. When he sold the property,
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$100 off your formation fee. That’s corporatedirect.com corporatedirect.com – What is your number one expense in life? Your number one expense. It’s taxes, and I wanna
ask the question is how come there’s no
financial education in school but why isn’t there
education on taxes either? They tell you to save
money which is stupid. They tell you to invest in the
stock market which is stupid. But what do they teach you about taxes? So here we have Rich Dad
advisor Tom Wheelright we’re talking about his revision for his book, “Tax-Free Wealth”. Welcome Tom. – Thanks Robert. – So what’s “Tax-Free Wealth”
about, what’s different this time with the revised edition? – So what we did was,
this is the first major tax reform we’ve had in 30 years, 2017 – ’86 was the last one – ’86 was the last one, back
when I was in Washington D.C. – So many guys got wiped out
because of that tax change. – They did. Wiped out an entire
industry, savings and loans. This new tax law is just
as big but in a very different way, it affects
different industries. The tax laws always a series of incentives and the question is
always, which incentives and which ones apply to me? And so the key to revising
“Tax-Free Wealth” was what changed so much in this new tax law that we can absolutely take advantage of the amazing, I mean seriously,
the amazing incentives. For example, the bonus
depreciation for example for real estate is unbelievable. You buy a million dollar apartment get a $300,000 reduction or
more the very first year. – So if you wanna make more
money and pay less taxes like Donald Trump and myself get Tom’s book, “Tax-Free Wealth”. – Log on to richdadradio.com
while you listen. Now back to Robert Kiyosaki. – Welcome back, Robert
Kiyosaki, Rich Dad Radio Show the good news and bad news about money. For all of you that think about starting your own business or just
getting started in business. Very important show. You can listen to the
Rich Dad Radio program anytime, anywhere, on iTunes or Android and all of our programs are
archived at richdadradio.com That means you can go back,
go to richdadradio.com and you can listen to this program again. It’s especially important this program if you’re sitting in your nine-to-five job and you think, well, I’m
gonna start a business. Well, I would definitely
listen to this program again then get together with friends, family and possible business partner
and your attorney hopefully. And then discuss this radio program because a lot of people get
into business for goofy reasons. And they walk into the
swamp and they get eaten by the Alligators, I’ve
done that a number of times. So anyway, it’s a very important program. Our guest today is Paul
Jarvis, he’s the author of “Company of One: Why Staying Small” “Is the Next Big Thing for Business”. And Kim and I agree, you can stay small and the real idea is
start small and survive. – And start!
– Start and survive! Most people don’t survive and
they have these goofy ideas like we were talking
about our business partner she says, “you guys only
make $120,000 a year” I said, yeah, but it’s a
$120,000 without working. “But that’s not enough money.” And we don’t pay taxes on the $120,000. (gasps) “You’re avoiding taxes?” And they were making about $350,000 a year but they are in the S
quadrant, the E-S-B and the I in the Cash Flow Quadrant and
they were paying 50% in taxes. So we were netting the
same but we were netting the same without working. So there’s a lot to learn
before you start one up. So anyway, our guest today is Paul Jarvis and Paul, welcome back to
the Rich Dad Radio Show. What do you recommend
for somebody starting up? – I think that you need to
focus on generating profit as quickly as possible. I think a lot of times we
think, oh we need to spend money to make money or
we need to get investors or that sort of thing– – It’s called ego, ego, ego, ego. And more money will solve
the problem when it doesn’t makes it worse most of the time. – Exactly, so I think
especially if we’re starting out I think we need to figure out what’s the smallest way that we can start and how can we start to
generate revenue as quickly as possible, and then
if growth makes sense the scale makes sense at that point when we are in fact making
money and profitable then let’s do that,
but if in the beginning if we figure out what’s
the smallest version of the thing I wanna do
that can generate income then that sets us up
to be in a great place. – I know this old saying that goes “Nobody went broke making a small profit”. A lot of people have gone
broke chasing more money. – Paul, you also say your book is called “Company of One” and
you say Company of One is not anti-growth and
it’s not anti-revenue and it’s not just one person necessarily. So what’s the difference what makes a company of one different? – I think that the way
I would define a company of one is a business
that questions growth. It doesn’t just assume that the byproduct of success is growth. I mean, we can event talk
about the trait that I see companies of one having
and they can be a business of one person, or in the
book there’s a bunch of business examples where
there’s 30 to 50 people but they definitely all have
certain traits in common. – So one of the traits you talk about that I embrace is resilience and you describe
resilience as the capacity to recover quickly from difficulties. Is that one of the traits? – It is, and I think
there was a study done by Dean Becker, who found
that resilience is actually the most useful thing for business success more than education, more than training more than experience. And like you said,
resilience requires having a sense of purpose, or a mission because sometimes things can go wrong but you can still work
toward that mission. It involves accepting
reality because we don’t have control over as much
as we think we do in life in work, in anything. And then the third thing in resilience is just the ability to adapt. Markets change, consumers
change, businesses change competition changes,
so we just have to have the ability to adapt. We’ve all been in
business for quite a while and business doesn’t work
the same now as it did 20 years ago or more. So just having the ability to figure out what we need to do, in
order to keep things going and it’s harder to do if
you’re a huge business. It’s hard for big businesses to pivot or move quickly in any direction. – That’s another thing that
really jams a lot of people a really good friend. If you wanna play the stock market game you go into what’s called
the acquisition phase and you go out there and
you buy other companies make your balance sheet look bigger and I always find that
very, very interesting because they can’t even
run their own company but they go buy another company and now you have two things you can’t top which you have no control over. And I see it all the time,
it just kinda cracks me up. Anyway, you can talk about resilience you can also talk about stupidity. There’s no scarcity of stupidity out there when it comes to the subject of money. So I think the biggest
question of all with Kim and I operate is, how much is enough? How much do you need to
survive and go with that? I’ve always said to people,
if you wanna be financially free, you don’t need a
401k, you need a fourplex. You got four units, live in one, rent 3. I mean it’s not that hard to do. – I think, and the key – You’re financially free! – And the key is to start,
we always say start small. Whether it’s business,
whether it’s investing start small because you gotta start you gotta get in the game. – Start me up. But so many people are afraid of failing which is really a tragedy
because fear can be good but not if it paralyzes you. So Paul, what else do you
have to say for somebody who is thinking about starting up? For me, it’s just have a simple
plan like buy a fourplex. It ain’t that hard. Fourplexes when Kim and I
started out were $80,000. And you didn’t need a
million dollars in your 401k. So this is so simple,
it shocks me that more people don’t do it. You got a fourplex, you
could quit your job. That’s priceless. – Well, there was a
gallop world study done and I think they looked
at, they were trying to see what the optimum level of
income was for happiness which I found really, really interesting. I think they talked too
about two million people across 150 countries and they found that more money did equal more happiness but only up to a certain point. It was like a bell curve
where if people were earning like you said, if people were earning around $100,000 and they were
covering their necessities they were covering long
term goals in investing and planning. If they made more than that,
they weren’t necessarily happy or more content with their life. They were actually more stressed out they were more likely to
chase material possessions and have these unhealthy
social comparisons that we were talking about and a lot of times they
would end up spending more. I think it’s fascinating
that so many people think about the top
number, the gross revenue in a business, or the
pre-tax income that you make when a lot of people don’t
think about the expenses. Or don’t think about, hey,
if I make the exact same amount of money, but spend less in my life I therefore have more money to work with or in business, if I have
the same amount of gross revenue that I’m generating
but my business spends less because we’re smaller,
because we’re leaner because we’re not taking
on other financial risks then we can make more money by generating the same amount of revenue, which I think is so smart to do, to think not just about that top number, but how
we can affect the bottom number as well. – And let me ask you this,
because when you talk about company of one, and starting small or staying small, there’s
a social stigma out there and small isn’t cool, small’s not sexy small doesn’t satisfy a lot of ego and isn’t there a lot of
pressure to go big and to grow? I mean the social stigma
out there is all about go big, or go home. – Sure, and I see that in my own life. I run a very small business,
and if people ask me what I do and what my day looks like as opposed to just what the business does then yeah, it could be, it could seem like I have a less legitimate
business because it’s very small. But at the end of the day,
I want to run a business that I want to run, I wanna
run a business that I enjoy. I want to do things, I want a business that supports my life and not a life that supports my business. And it doesn’t really matter what other people think, right? And a lot of people who have
said, oh you should grow when my business in the ’90s was doing exceptionally well, and
people would tell me, oh you need to grow you need
to hire all these people you need to do this and this and they did that in their business and they’ve gone out of
business 15 years ago. and I’m still in business
and still running the same business as I did in the ’90s. So I think just by virtue
of outlasting those people who say those sorts of things it just ends up working out. – What you’re saying is very, very true. More is not better, big is not better but anyways, it’s easier said than done because we all have different egos and different drives and
different motivations. It’s not that hard, it’s
really not that hard. – And one of the statistics,
Paul, that you talk about is that 2/3 of the companies on inc’s fastest growing companies and there’s the word,
“fastest growing companies”. There out of business in five
to eight years later, 2/3. So do you think if these
companies adopted more of this thinking, of being company of one and not so much growth
but what fits the person do you think there would
be less failure rate? Do you think there’d be more
survival of these businesses? – Yes, definitely, because
it’s very hard to run a profitable business when you’re running a growth-focused business. When you’re running a
growth-focused business you’re forsaking profit now in the hopes that you will have more profit later which can sometimes, sometimes pay off but I think, it only pays
off about 1/3 of the time looking at that research study
from the Kauffman Foundation. And all of the studies that I’ve found all of these businesses are failing. Not because of competition, not because of bad products, not because of the market but because they could
not sustain the resources required for their rapid growth. – It’s not just for
businesses, I think that’s really where I’m coming back to is that what traps a
lot of people in the job to nowhere, in the nine to
five or whatever they’re doing is that they keep spending more money. They make let’s say $50,000
a year, they get a pay raise they buy a bigger house. So it’s not really just business it’s this idea that more is better. And I think one of the reasons
Kim and I are successful is very simply our highest
priority was freedom and that’s why our number
was $120,000 a year. For most people, that’s
undoable unfortunately. And it’s really easy to
do, but in their mind $120,000 sounds a lot,
especially if they’re only making $80,000 a year. How would you get
$120,000 without working? That’s really the challenge here. It’s a whole different mindset to do that. – And then there’s one other piece to it which is we got that
goal of $10,000 a month and then it became more
fun because every time we would learn something
new and was like, okay what’s the next challenge? Because we love challenges. What’s the next game? We love games. So then we got to build on it. The purpose wasn’t to build
a billion dollar company the purpose was to get financially free. – That was our first purpose.
– Yup. – And the number was $120,000 a year without working, paying no taxes and that’s what Rich Dad stands for. The story is our partner at the time said, “Is that all you make?” And Kim and I live in
this tiny little house we drove used cars and– – Everybody had their McMansions – They had a big McMansion,
they had a Mercedes and the stuff, they had
the big corner offices. They worked in corporate and that’s more but I don’t think it’s better. Anyway, so it’s a very, very
good message you have here– – And I think Paul too your
message is very similar to our message which is you’re teaching people to be free. You want them to have the freedom to do what they wanna do. – It’s called success, too. – And success, so I think
we’re right aligned– – The freedom to make choices. – So Paul Jarvis is the author of “Company of One: Why Staying Small “is the Next Big Thing”. And Paul good luck on your
book and please get the book and everybody read it because it’s got a good message in there. Thank you Paul. – Thank you and your website Paul Your website is P-J-R-V-S, P-J-R-V-S .com – That’s correct. – Thank you. – Thank you Paul.
– Thanks a lot. – So when we come back,
quite the most popular part of our program is ask Robert where you get to ask us your questions. (upbeat music) – You’re listen to The Rich Dad Radio Show with Robert Kiyosaki. – Don’t be like Charlie. Charlie is that do-it-yourselfer
who does himself in. Do it yourself is good for tile and grout. It is not good for asset protection. Charlie thought he’d save a few dollars forming his LLC online. With no guidance, he did it wrong. When he sold the property,
he lost thousands and thousands of dollars. He did himself in by
trying to do it himself. Don’t burn yourself, use Corporate Direct to set up and maintain
your LLCs and corporations. Corporate Direct is owned
and operated by Attorney and Rich Dad advisor, Garrett Sutton. Garrett wrote the best sellers,
“Loopholes of Real Estate” and “Start Your Own Corporation”. He is Robert Kiyosaki’s
Attorney for asset protection. He and his team will do it right. Visit them at corporatedirect.com or call 800-600-1760 mention Rich Dad, and receive
$100 off your formation fee. That’s corporatedirect.com corporatedirect.com (funk guitar music) – It pays to listen. Now back to Robert Kiyosaki
and The Rich Dad Radio Show. – Welcome back Robert Kiyosaki
and Rich Dad Radio Show the good news and bad news about money. You can listen to The
Rich Dad Radio program anytime, anywhere on iTunes or Android and all of our programs are archived at richdadradio.com and we archive it because
we’re an education company so if you listen to this program once more with Paul Jarvis and he’s the
author of “Company of One: “Why Staying Small is the
Next Big Thing for Business”. It’s a very good thing to do. Listen to it again, you may learn a lot but most importantly,
if you are in business or you have friends and families listen to it with friends,
family or business partners then discuss the points and
merits, whether you agree or disagree, but that’s how you learn. You don’t learn just
sitting their taking notes and you can submit your questions to [email protected] and once again, thank you to Paul Jarvis. What’s the first question Melissa? – Our first question
today comes from Emile in San Marcos, Texas, favorite
book, “Rich Dad, Poor Dad”. “Robert and Kim, I know you
both stress the importance “of being able to sell as an Entrepreneur. “I’ve been running an online business “and I’m having success
but now I need to scale “and seek out investors. “I’m an introvert by nature
and face-to-face selling “isn’t my strong suit. “What advice do you have to
learn the skill of selling?” – Well I think the first question I have or first suggestion is,
I would get this book, “Company of One” because
Paul Jarvis talks about that word, “scale”. There’s such an emphasis
on, you got to get big to get better and I’d agree with Paul and the good thing
about being an introvert is then, you have to get
creative and figure out better ways, you know,
you don’t have to go face-to-face, I hate it, I
still hate it to this day. But being a former Marine
I go through my problems I don’t hide from my problems. But for you it might just
be getting more creative. Figure out different ways
to market to get attention. But if you’re gonna raise capital you may have to hire somebody
to raise the money for you but before you do that,
I would definitely read Paul Jarvis’s book, “Company
of One” because scale you don’t necessarily make money by getting bigger, right Kim? – Yeah, and my first question would be why do you need investors? What’s the reason behind it? Is it because you cannot
sell and you think that money is gonna help, because you’re gonna have to sell to investors and once you bring on
investors that opens up a whole new door and a
whole new set of problems and possibilities but
one thing that Paul says in his book is, he says, start out as simple as possible and always fervently question adding new layers of complexity. So bringing on investors is
a new level of complexity. – Yeah I wouldn’t recommend it, especially if you’re an introvert
because you’re dealing with another breed of
cat when you do that, so – And if you take on somebody
else’s money, you gotta be really
– Really good – Adamantly responsible for
that money, more than your own. – I definitely would, given what you said I wouldn’t recommend it. So I would use some lateral thinking and be creative, figure
it out, work around your, turn your weakness into a strength whereas what I did was my weakness was that I couldn’t sell, I
just powered through it for five years and I
became number one in sales but that’s not for everybody. Anyway, there’s different
ways, there’s different strokes for different people and keep thinking, that’s
the most important thing. Next question Melissa. – Our next question comes from Wes in Bakersfield, California. Favorite book, “Rich
Dad’s Guide to Investing”. “I have a small business with
a 50/50 business partner. “I’m happy with our current success “and status of our company “but she thinks we need
to bring on employees “to keep growing. “I have no interest in managing people “and I know that my partner won’t do it “so it will fall on me anyway. “What advice do you
have to manage conflict “with your business partner?” – Don’t do it. (laughs) This is his conflict and
it’s like the first question the guy says, I don’t like
to sell, conflict is selling and business all day
long is you gotta sell the next, your idea, this
idea, listen to some other stupid idea because to
bring on an employee I think you need your head examined first (laughs) because that’s one of the
hardest things you can do and with the laws and regulations today bringing on employees
is, and I really don’t recommend it and the beauty
with what Paul is saying with technology today, there’s many things technology can do where you don’t need to hire employees, which is the problem. – I think the word is
plan, Kim and I have a plan and we stick to the plan. But the plan has gotta be
a logical and also hire or find a mentor. Somebody who’s already
done what you want to do so it’s a go-between
between you and your partner ’cause otherwise you’re gonna be looking for a new partner or be in a lawsuit like I and Ohio was in, with
my charming personality. Okay, so it’s not an
easy thing, right Kim? – Yeah, no it’s not an easy thing and I would almost go back to basics because when you look at what Robert and I and partners we’ve had in the past the thing that killed was
when we were not aligned on the mission, when we were not aligned on the values of the
business, or you might wanna take a step back with your partner and re-examine what’s the
mission, are we aligned what are the values of the
company, are we aligned and if not, that’s a
discussion that you two need to have because already
you’re having conflict over whether to hire employees or not that problem’s only gonna get worse if you don’t get to the
root of the problem. So that would be my advice. – Yeah, definitely get Paul Jarvis’s book and discuss it with your partner. If the two of you do not
wanna read Paul’s book and discuss it, you have a bigger problem. Next question, Melissa. – Our next question,
Robert, comes from Justin in Denver, favorite book,
“Rich Dad, Poor Dad”. He says, “Robert, hi. I’m
also of Japanese descent “and some of my morals and
values include saving money. “How can I get in the
right mindset and switch it “from a poor mindset to a rich mindset?” – Well first of all, there’s
nothing wrong with saving. It means you’ve earned more and spent less which is a good trait
today but the thing is what’s your purpose for saving? What are you gonna use it for? And the reason I don’t like
saving money, as you know as today we have negative interest rates and they’re still printing money. I have a book coming out called “Fake: Fake Money, Fake
Teachers, Fake Assets” And they say well, they
stopped printing money we’re now in QT, Quantitative Tightening but you understand the financial system the whole system was
designed to print money it’s called a fractional reserve system. They’re always printing money. So there’s nothing wrong
with having savings but you gotta have a purpose for it. To save money for more than
a year is really ridiculous. It’s money you should be putting somewhere doing something else with
but if you don’t know what to do with the
money, like buy a stock or mutual fund or bond
or real estate, save it. There’s nothing wrong with having a little extra cash, right? – No that’s exactly right,
and going back to Paul’s book and what you and I
say Robert all the time is to start small so if
you have no financial education, saving might
be the best place to go but if you wanna get a
better return on your money then start small, put a
few dollars into stocks or real estate– – Or there’s silver right now
– Oh there’s silver right Go buy a one ounce silver coin. – Just understand that
the whole financial system was rigged against savers. If you can understand that,
that savers are losers ’cause the system is rigged against you. Even if they stopped
printing money, the system is still rigged against you. That’s really the hard thing for people to get is, you’re screwed. So that’s why with the Rich Dad Radio Show we’re not telling you what to do. Kim and I combat saving by
debt, we like borrowing money. – But we know how to handle debt. – Well, of course. But anyway, it’s all about education and please keep asking
questions, keep looking at things but savers are losers,
simply because if they stop printing money, the whole banking system is based on screwing savers. If you can get that through your head and same as mutual fund guys
and all that, you’ll be fine. So once again I thank Paul
Jarvis, designer and author of “Company of One”, please get that. I think the big lesson,
you gotta have a plan Kim and I have plans,
generally for what we do. How we wanna get from point A to point B. We don’t always get there, we will plan and Paul’s book, “Company of One” his website is pjrvs.com And you can submit your
questions to Ask Robert [email protected] and thank you for listening
to the Rich Dad Radio Program.

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About the Author: Oren Garnes


  1. Real estate is just a number with a few extra zeroes behind it. Start small with one house, then add another, and another and continue to repeat the process.

  2. Fuck the Lambo, I just want freedom, a small farm, and maybe a handful of nice Swiss watches that I can pass down. I don't have any subscriptions, I don't even have smart phone service. No Iphone, no consumer bullshit and Zero debt. Im waiting to find some good deals to get some best debt and trying to figure out how to get started in Real Estate. But I don't care, and never have, with keeping up with the Joneses. If and when I become a "millionaire" I won't even ever buy a brand new car ever. I'm good with a 30 year old pickup truck. Have you seen the prices of brand new cars and trucks these days? Ridiculous. People enslave themselves for these big ass trucks (that they don't need) just to go to their jobs. Absolutely idiotic. I don't care about living in a mansion. I'd rather actually be rich and look poor (except for maybe a handful of $40k watches, which probably no one will even realize that they cost that much anyways).

  3. I want to express my gratitude Robert. Thank you for sharing your experience and wisdom with people. Your book made me think and take credit to invest in downtown real estates I rent as stay per day and this enabled me to be almost completely financially independant. Cheers to you and your wife!

  4. Its actually not hard to start. Supposed you have a good credit rating you take for example 150 000 eur loan. Its 624,24 eur/month all costs included at my bank. You rent it per day 60-70 eur depending if its weekend or workdays. I am able to easily rent it for 20+ days per month. You dont pay the tax since debth is non taxable. My next idea is to take a large flat and turn it into few apartments with shared bathroom and kitchen. I can lower the cost to as little as 30eur per day stay and could get like 180eur per day for same figure invested and I expect ocupancy rate to be at 90%

  5. Wealth is having more than enough to do what you love. Its ok to want more, but if you need more its ego and still be slave to money. Want and need is different. Rich or poor is a state of mind, if you still need more money you're greedy or poor but if you enjoy your life and have enough money to enjoy you're wealthy. But if want more is means must be aligned to your purpose or mission and optimize for your good life. That's why country like Denmark and alot of country in western europe are happy cause they aren't spend alot of money and really want more that's why they are free. They work and have enough money to invest.

  6. I believe going small is a great idea for my business. Because if people I know see me grow will not support. Thanks for the great advice keep it coming ?

  7. I was born naked and broke financially, and that's how I'm leaving one day. WHATEVER I come up with in the mean time is a gift and I say grow as much as you can. A tree grows as tall as it possibly can. I know I'm not a tree, but, the same God made us both.

  8. Great advice! In particular, I’ve seen major cryptocurrency foundations raise all kinds of money and two years later it’s all spent without having a working product or generating any profit. They come up with great promo videos and models but fall short implementing the technology.

  9. Always great stuff from your and know your company and show is honest. Thank you. Was really looking forward for this for a week, since you posted last video about it.

  10. Thanks very much, nice episode, ill be listening to it everyday until the concepts and principles stick to my brain. #sellmeyourLamborghini?

  11. If bigger was alway better the Soviet Union wouldn't have collapsed, the British Empire wouldn't have collapsed. Empires whether the nation state or a huge business cost a lot to just run day-to-day. Smaller is leaner and generally more agile.

  12. Growth = success. What world do you live in. When somebody Intentionally makes you fail that's a different story

  13. U know what's funny sometimes I buy a asset and it's cheaper than a liability and it produces income.

  14. 120,000 is enough for most things but your not a accreted investor? until 200,000 single or 300,000 as a couple?

  15. The teller didn't see money in their account bc they had it somewhere else. Many accounts of mine are low but that is just to keep them open while I move my money around to where the best interest is.

  16. Robert or others!! where can you buy 4 plex for 80,000 bucks?? Robert said 80,000 bucks for buying 4-plex and get a financial freedom. Are you kidding?? or Serious please give me an example where to buy, please!?

  17. This is a philosophy you can see at work in Paul’s own life, where he actively chooses to only build the size of business that he can personally manage himself, where he still gets to personally practice his craft, rather than growing it far beyond himself in a way that’d force him to become merely a manager of his business. All the best Kim & Robert from Croatia, E.U.

  18. THANK YOU PAUL for this perspective which runs completely counter to today's culture. We're given these ridiculous "idols" like the Kardashians and brainwash us into unhealthy, planet-killing habits, because it drives THEIR growth, not your own. People are pretty simple: We want air, water, food, shelter, sex, and I would add freedom to that list. Want to be happy? Get these. And you only need so much money to achieve it.
    I love the focus on profit. When I work with my clients, I always focus on BREAK EVEN, which is similar. This must include owner's pay. As soon as you break-even, the rest is gravy, just like Robert and Kim talked about $10K/mo. tax-and-time-free. I also talk about THEIR GOALS with them, because they should run their business in a way that serves them, not me, and not the Kardashians. Happy and Free hunting out there business owners!

  19. I think this is great advice. I started my business small, and grew well over a 5 year period.. Then quit my job. I would also say never give up when the going gets tough. Use your mind to work through problems.

  20. I think that constant interruptions was getting on my nerves. Allow the called to. Are his point.

  21. Robert kiyosaki is the most intelligent man in the world ✊?the 1st I read a book that made sense to me was Rich dad poor dad… Love u frm South Africa ✊

  22. Stop lying the US took the dollar off the gold standard in 1913 and then took it off oil in the 1930's. In 1970 Nixon tied the dollar to debt with oil as a hedge against other commodities.

  23. Love Robert but you can't buy 4 plexes anymore for 80k. Here in the Netherlands a house that is easily rentable will set you back at least 180.000. One house.

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