Everything you need to know about running a business you probably learned playing Monopoly as a child. From owning hotels to debt management, the lessons are all contained in the board game, says Rich Dad Poor Dad author Robert Kiyosaki. GN Focus talked to the best-selling author about business, and what rich fathers teach their children about starting entrepreneurship that poor fathers don't.
The 69-year-old Hawaiian businessman and advocate for financial education advises SMEs to take a gamified approach to business. “Business success is a multifaceted scenario,” he tells GN Focus via email. “Many factors come into play: market conditions, timing, supply and demand, economic environment, access to money, risk tolerance… the list goes on and on. All these lessons play out in Monopoly. The key to great wealth is three green houses, one red hotel.”
Those buildings represent Kiyosaki’s main piece of advice: generate a passive income stream through cash-generating assets such as real estate, stocks and commodities. While asset-heavy P&L statements may appear counterintuitive in a digital world where businesses must be nimble and agile, the revenue from personal investments could provide SMEs with start-up funds.
Kiyosaki also says enterpreneurs shouldn’t be scared of debt, whether formal or family loans. “Learn to use debt,” he implores, “Smart entrepreneurs know how to use debt to get rich.”
The author, whose 25 books have sold 26 million copies, is in Dubai next month to speak at the National Achievers Congress. The event, to be held at Festival Arena in Al Badia on November 18-19, aims to encourage entrepreneurship through talks by speakers such as Kiyosaki, Ultimo Brands founder Lady Michelle Mone, wealth coach JT Foxx and London property landlord Kevin Green.
Early failure
As is often the case with entrepreneurs, Kiyosaki failed in his first few businesses. A surfer wallet that used Velcro and nylon was his first success in the late seventies, but economic trends meant he ended up bankrupt, homeless and in debt. He then built a merchandising business retailing rock ‘n’ roll souvenirs and by the mid eighties he was teaching entrepreneurship and investment. He only published Rich Dad in the late nineties as a way to reinforce some of these concepts.
Kiyosaki’s new book, The Business of the 21st Century, focuses on network or multilevel marketing, where salespeople are compensated for revenues they themselves generate as well as those generated by the people they recruit. “It’s a way for anyone to start a part-business and begin to leverage the tax advantages that the rich understand, respect and enjoy,” Kiyosaki says, explaining how the concept ties in with his passive approach to acquiring wealth. “Network marketing represents amazing time leverage. Successful network marketers understand that a key to success is using other people’s time as a way to leverage yours.”
To be successful on this front, entrepreneurs must rely on teamwork. “SMEs benefit by investing in their teams and by helping everyone to achieve success,” he says. “Who’s on your team and how strong are they? [An entrepreneur] needs a team with specialised talents, skills and experience to build a thriving organisation.” Which, if you played enough Monopoly, you’d know all about.
3 business lessons from rich dads
We asked Kiyosaki what rich dads teach their children about enterprise that poor fathers don’t. Here are his top three things
- Learn to differentiate between good debt and bad debt and how to use debt to grow a business.
- Prioritise building and acquiring assets over earning high income.
- Don’t live below your means. Challenge yourself to find ways to expand your means to live the life you deserve.
— Visit Nationalachieverscongress.ae for event details
