In Robert Kiyosaki’s another bestseller book “RICH DAD’S CASH FLOW QUADRANT-A Guide To Financial Freedom” , he discusses how people can be grouped into 4 categories under his Cash Flow Quadrant depending on their outlook on money and their capacity (or chance) of getting rich. This Cash Flow Quadrant can be applied successfully in outsourcing in the Philippines where there is an abundant supply of highly qualified manpower with minimal investment involved—a plus factor for investors planning to expand their business operations.
In Robert Kiyosaki’s “RICH DAD’S CASH FLOW QUADRANT-A Guide To Financial Freedom”, he categorizes people into the following groups:
1. E or the employees. Robert says that people in this category are those who prefer to stay in the comfort and safety of being employed and getting sure income every month from their employer. Of course, they are also the ones heavily taxed ad routinely by the government even before they physically touch their earnings for every particular month. Since they have to do their jobs themselves, outsourcing for other people is not applicable to these people.
2. S or the professionals and/or self-employed who, according to Robert Kiyosaki, derive their sustenance from the practice of their professions or the running of their small business based on their special training. You find under this group the engineers, medical professionals, accountants, etc. who either put up their own offices or , again, get employed. Usually people belonging to this group are perfectionist—who feel they have to do the job (or run their businesses) themselves for the fear of failing. They do NOT delegate their work since they feel no one could do it better. Because of this attitude or mind-set, they do some outsourcing to a limited capacity. However, if they do their outsourcing in the Philippines, their demand for very qualified manpower to meet their astringent requirement can be met satisfactorily.
3. B or businessmen. Robert Kiyosaki says that people in this group believe that they accomplish more and faster if they hire to do the things for them, and they are usually right. They often own fairly big enough establishments. Outsourcing is a common practice to these people and rightly so. Outsourcing enable them the opportunity to look for or put up other sources of income since they are not tight down to their present work—they hire other people to do their jobs and be free to move on. This is where outsourcing for manpower in the Philippines serves them well since they can hire highly qualified people without spending a fortune in doing so. However, outsourcing could be overdone to the point where they lose control of their businesses. Chances are, they either move forward faster or go bankrupt due to lack of close supervision. Businessman usually get around the problem of taxes since the government only require them to pay based on their net income. All else are considered operating expenses of their businesses.
4. I or investors. In his book “RICH DAD’S CASH FLOW QUADRANT-A Guide To Financial Freedom”, Robert Kiyosaki avers that people under this category are the fastest to grow in their financial status, and to some extent, the shrewdest since they expand their businesses using other people’s money, albeit legally. The Philippines may their best option for outsourcing ,not only for manpower, but for investment capitals as well. By the way, like the businessmen, investors could also duck heavy taxation despite their bigger income due to taxation laws of the government.
Robert Kiyosaki says all the people in these quadrant have the capacity to be successful and eventually get rich but at different paces, some faster than the rest, or not at all.
“Quickly move from Self Employeed and Operator to business OWNER”