Recently, I attended a book signing for Robert Kiyosaki’s new, best-selling book, “Unfair Advantage – What Schools will NEVER Teach You About Money.” The author of the number one personal finance book of all time, “Rich Dad Poor Dad,” investor, entrepreneur, educator, and co-host of the new radio show, “What Does It Mean to You?”, agreed to share some of his tips with the StartupNation audience.

Here’s what Robert had to say:

In “Unfair Advantage,” you mention that schools don’t teach us about money. Why not?

I believe the reason for this goes back to 1904 when John D. Rockefeller took over the education system in the United States with the General Education Board. And ever since then, the rich have controlled what is taught in our schools. Rockefeller’s purpose, it seems, was to find the brightest and the smartest people who had no financial education. Then, they would need a job and work for him. That’s my opinion.

Why is it important for people to read “Unfair Advantage”?

If you read Rich Dad Poor Dad, it was my story when I was nine years old. It’s very simply written about my poor dad, who was the head of education for the State of Hawaii with a Ph.D., and my rich dad, who was my best friend’s father. Unfair Advantage is me in my sixties now. I’m doing exactly the same thing I was doing when I was nine, but today, I’m doing it in the millions.

Decades have passed, but my financial strategies have never changed. In Rich Dad Poor Dad, which came out in 1997, I said that your house is not an asset. And rule #1 from my rich dad was that the rich don’t work for money. 

Most people go to school to get a job and spend their lives working for money. As long as you’re physically working for money, you’ll pay more taxes than guys like me. Unfair Advantage is basically Rich Dad graduate school using 2010 examples.

With the high unemployment rates, many people want to start their own businesses. Other than read your book, “Before You Quit Your Job,” what advice do you have for these people?

“Before You Quit Your Job” covered what you should know before you quit your job because there are basically eight integrities to a business. And the reason nine out of ten businesses fail is because they may be good at seven of the eight, but it is number eight that gets you. A successful business needs all eight of the integrities of a business strong and working together.

Most people leave school too highly specialized. They don’t know anything about business, accounting, legal, or cash flow. And that’s where they get crushed. 

My message to people is this… if you’re following the old advice of the middle class which is go to school, get a high-paying job, work hard, save money, get out of debt, and invest in a portfolio of stocks, bonds and mutual funds, you’re being crushed.

The reason you want to be an entrepreneur is to get out of the middle class. The middle class is being wiped out right now. 

Is it a good time to start a business?

It’s not timing that’s the issue, it’s how you prepare. The fact is that it’s not that hard to be an entrepreneur. My next door neighbor’s little girl comes over, and she polishes shoes. She’s an entrepreneur. 

The trouble is that most people go to school and look for a high-paying job. The problem with getting a high-paying job is taxes. If you work hard and make more money, you move into a higher tax bracket.

That’s not financially intelligent, and they’ll never teach you that in school. To me, that’s stupid. For the middle class, they are going to pay more taxes and struggle with rising inflation. How do you get ahead doing that?

How do business owners put the Unfair Advantage to work for them?

Unfair Advantage is about capitalism. And believe it or not, the tax laws are written for capitalists. The tax laws are telling you what to do. This is what the government wants you to do – provide housing and be an entrepreneur to create jobs. And for that, the government will give you huge tax breaks.

Looking back at your success as an entrepreneur, what would you have done differently to achieve a higher level of success faster?

I can’t say I would’ve done anything differently because every mistake I’ve made was someone showing me how stupid I was. The more mistakes I made, the more stupid I found out I was, and the smarter I became.

That’s why most people who do well in school are not good entrepreneurs. They’ve been programmed to not make mistakes… so I can only encourage people to be stupid and learn from their mistakes. 

It’s called “Unfair Advantage #5”, the law of compensation. The reason I make so much money today is because I’ve made so many mistakes…. so start making mistakes. Mistakes are very good for entrepreneurs and very bad for accountants, lawyers and brain surgeons. You don’t want a brain surgeon making a mistake! It’s a different world for entrepreneurs.

Many people are in a really bad situation now. They are unemployed with huge credit card debt and are on the brink of losing their home and claiming bankruptcy. Plus, many of them are over 40. Is there hope for these people, and what do you suggest they do first to change their financial situation for the better?

They probably need to ask themselves why they got themselves into such a precarious position. And second, I’ve been there. I’ve lost. The most depressing day of my life was when they repossessed my Harley Davidson. I’ve had the IRS after me because I couldn’t pay my taxes. But all of those were fantastic learning experiences that made me smarter and wiser.

I think the best thing that happened to me was to lose my business at age 29. I’m glad I didn’t lose it at 49. It took me six years to dig myself out of nearly a million dollars of debt. I didn’t declare bankruptcy. I just paid everybody back. I rebuilt my business, and that’s when I got smarter, and I’m still getting smarter every day.

Today, I can make that money back faster. And that’s the attitude an entrepreneur has to have. Mistakes are a learning experience. 

There are many financial scams out there. How do people find credible information and advisors to help you and avoid being ripped off?

It’s the same as finding the perfect husband or wife. You don’t know until after you get married! Cut your losses early, and figure out if you are the cause of the problem.

What is the best piece of advice you ever received and how did you use that advice to succeed?

I have a B.S. degree, and I’ve never used anything I’ve learned at school. When I found out I was not really good at school, I got through by cooperating. I always sat next to the smartest people in school. In the real world, that’s called cheating. Today, it’s called collaboration.

I’m extremely lucky to have very bright partners. That’s one of the most important things you can have.

You’ve got to be careful who you hang around with. I used to have a lot of friends, but they didn’t continue on as partners. They did not keep expanding their education. They were complacent. And today, I can’t even talk to them as we’ve become such different people. I kept moving on. I kept getting educated and growing. 

And in 2009, one of the best things happened. One of the most influential financial groups in our hometown invited Kim (my wife) and me to be business partners. And that’s how I knew I was doing o.k. You know you are making progress because your friends change.

I’m sure you’ve heard people say, “Do what you love.” But I think you must do what you must do. A lot of people cannot do this. As an entrepreneur, I guide my business and my activities to get paid the most money and pay the least taxes.

What are your favorite media venues to get financial information you can use to enhance your financial education?

I read “The Economist” and other financial magazines so I’m abreast of what’s going on. I’m always taking seminars and classes.

What you’re going through now as an entrepreneur is incredible. That struggle you’re going through is one of the best things you can go through to learn. But don’t stop getting educated.

Get mentors and advisors and attend classes. Choose your teachers carefully, and make sure they have real-world experience. If you’re not changing, then you’re not growing.

Are there any additional tips you would like to provide specifically to the entrepreneurs out there trying to start and grow their businesses?

First, congratulations for the struggle. If you’re already struggling, you’ve taken the first step. You’ve got to be careful of your teachers, your partners and your friends. And you’ve got to do your part. If you’re stupid, people who are smart are not going to want to hang out with you.

You can’t stay still because the world is going too fast today. If you’ve already started, congratulations, but don’t stop now!

Thanks so much for your great words of wisdom Robert! For more tips to succeed, please check out “Unfair Advantage” and all of the information at www.richdad.com.

And if you need help with your SEO copywriting and PR efforts, please let me know here or at www.rembrandtwrites.com!

This just in from the NBC Nightly News producer:

“We finally have an airdate. July 13th. I’ve been scrambling with other projects in the meantime. Scott is out til next week so after the holiday we’ll get serious about shooting someone starting a business. I haven’t had a chance to go thru all the candidates you sent, but a few look really promising.

Thanks.”

Cross your fingers, folks - i’ve submitted many of you for their consideration.

—
PREVIOUS POST ORIGINALLY PUBLISHED ON JUNE 19, 2009

Here’s the deal: I am appearing on NBC Nightly News with Brian Williams on June 29 (most likely). They’re doing a cool feature about what happens if you lose or leave your job in this market and how to start a successfull business.

Don’t you love it! And kudos to NBC for focusing on this subject. As i mentioned to them in my taping for the feature, I truly believe that it will be small business and solopreneurs who help America dig out of this slump.

OPPORTUNITY: If you are one of those heroes who has left a job and started up a brick-and-mortar business in this economy, please email me at PR@startupnation.com.

Please add to the email subject line the following so I’ll know to treat it with urgency:  “NBC Story - I Started a Brick-and-Mortar Business”

Deadline: Tuesday, June 23.

I will then share your email with the NBC Nightly News producer.

Carrie Fisher has an impressive background as a writer, two of her books having been made into films. After something akin to electric shock therapy, she risks losing much of her memory and past in order to move forward with the rest of her life. To many, this would be a death sentence as our history, that which binds us into routine and dictates much of our decision making, is the thing we find the most comfort in.

Fisher is an example of someone who refuses to be put in a box, who is still out there learning lessons, sharing her findings and being funny — whatever you may think of her or her talent, you just have to appreciate those qualities in a person.

She has a book: $29.00- 13.38

She has a 1-man show: $59.00-49.00

And those lovely cinnamon buns on the cover, priceless.

I was disappointed to see that there wasn’t some Hollywood intern trapped in a hamster wheel blogging for her while she’s on the road, to capture all the love and well wishes, etc. but I suspect she will get to that eventually. All Boomers have to embrace the web at some point.

To Carrie’s new life, she’s summoned her chutzpah and making some coin on skills she still has, memories she might lose and of course, looking to what the future might bring.

Altogether, a rather inspirational message.

Traditionally, companies that “do good” are generally non profits, and when people find out that a traditional small business is also “doing good” they feel like somehow the company must be taking advantage of the community it is serving if it is also turning a profit. I do not believe this to be the case and formed my consulting company based on the premise that small businesses would contribute to a triple bottom line if they knew where to find it.

Creative Capitalism has been around for a while. Formerly known as social entrepreneurism, it is a concept newly labeled by Bill Gates, Warren Buffet and other market leaders and the premise is that “we should attempt to stretch the reach of market forces so that more companies can benefit from doing work that makes more people better off.” The book is available on Amazon (unsure of where the profits go). So far, it’s a pretty foreign concept to most bottom-line discussions. Having spent time reviewing the giving trends of big tycoons in the past (land trusts, libraries, parks), there is something different about the timing of this idea: the generation that is receiving it.  

The 30 and 20-somethings have grown disillusioned with where the 1980s consumption and 1990s holding on behavior have gotten us. Those that have the means to get out and travel, see the disparity in the world, come back and want to do something about it. With technology to reflect back their experiences they are twittering, facebooking, myspacing and texting what they are seeing to one another – and a small group are doing something about it.

Why profile TOMS?

Two reasons: 1) Anyone who has seen true the true spirit of leadership in play knows it is the eagerness to lose oneself in the group for the good of the group. This quality is best exemplified in Blake Mycoskie for the simple reason: that is where the heart of his business began. One for One, from day One. 2) Any size business should learn that a social model (something that takes into account the community in which it survives) thrives 10-fold compared to businesses that have tunnel-vision on bottom line sales. There is something to be said for karma.

About the Company

TOMS Shoes promises to give to children in need a pair of shoes for each pair it sells. The company  has given over 140,000 pairs of shoes and expects to give more than 300,000 pairs this year.

TOMS Shoes launched in Venice, California and sold 10,000 pairs during the first year in business. As a result, Blake returned to Argentina in October of 2006 with family and friends and unveiled the second phase of his business plan: the Shoe Drop Tour. To meet demand, TOMS now offers Shoe Drop Tours throughout diverse regions of Argentina. These are volunteer opportunities where TOMS Shoes supporters hand-deliver shoes to children. Since its beginning, TOMS has given over 140,000 shoes to children in need around the world. 

Here is a bit of my discussion with Blake:

Why shoes?
BLAKE: Walking is the primary mode of transportation in developing countries. Children walk miles just to get food and water, to make their way to school, or to reach medical help. In some communities, children can’t even attend school unless they have proper footwear. And the leading plague in these countries is soil-transmitted parasites. Shoes are such a simple answer to these problems children face every day.

See TOMS educational videos: One Day Without Shoes and Why Ethiopia (warning on the second video for graphic images)

Technology is required in today’s job market. Is TOMS Shoes looking to attract a blended workforce, or does the average age of the workers in the company reflect a standard .com?
BLAKE: For the first few years, our staff reflected the young, evolving company that we were. But as we grow, TOMS is definitely looking to attract a diverse workforce. We’ve become much more aware of our needs, and therefore able to hire individuals with specific skill sets, relevant experience, and worthy knowledge. I am still the CEO and Chief Shoe Giver, and I continue to immerse myself in TOMS because it’s my passion. I have creative ideas and feverish curiosity, and my team is receptive to that. But I definitely have trust in those who are facilitating the every day, drafting direction, and establishing strategies.

Your company is for-profit. What sort of profit sharing model exists for the employees and how did you arrive at the decision to not do a nonprofit?
BLAKE: My earnings from other businesses I had started before TOMS are what kept us afloat in the earlier days- TOMS was not funded by an outside 3rd party. I never had to present a business plan or get approval, I just had trust in myself and the One for One concept. Of course people laughed when I said TOMS would give a pair of shoes away for every pair we sold, but now TOMS is proving One for One as a viable business model. Our customers have been amazing supporters since day 1.

I created TOMS as a for-profit business to ensure a sustainable way of giving. We’re able to give shoes weekly in Ethiopia, and monthly in Argentina. I also wanted to prove that you can build giving into your business model from day one and still be profitable. We get a lot of inquiries from all types of organizations wanting to get involved with TOMS in one way or another. It’s a blessing, really, but we have to be careful in these first critical years of building our brand.

You are an example of an individual whose actions will help define the generation they are in. Your generation is described as both the “me generation” and the “giving generation.” How do you think your generation should be characterized?
BLAKE: This generation is one that thrives off of action. We don’t dream about change, we make it happen. We don’t imagine a way to incorporate giving in to our daily lives- we do it. TOMS has so many young supporters who are passionate about the One for One movement, and who share the story and inspire others every day they wear their TOMS. Seeing them support this business model is proof that this generation is ready and able to create a better tomorrow.

People connect with TOMS beyond just owning another pair of shoes. There’s something more every time you slip on a pair, every time you share the story, every time you suggest a pair of TOMS as a gift because no matter what brought you to purchasing a pair of TOMS, you are making an impact on a child’s life. Will there be saturation of cause-based marketing? Most likely, but TOMS has paved the way for other entrepreneurs to incorporate giving in to their businesses.

The One for One mission is sticking with this generation, and causing a new way of thinking. We grew up with parents who were taking those first small steps, and now we are just charging full speed ahead towards a better tomorrow. We have to. One for One is proving that you can bring closure to an issue by incorporating a conscious decision in to the actions you already take- whether its as a consumer purchasing a product, or a business looking for ways to inspire a better tomorrow. It makes consumerism and philanthropy come together full circle.

Carpe Diem!

She’s looking for a lead person to feature in her story.

If you have a story to share about this, please feel free to do so here. To be considered for the story, ASAP, click on the CONTACT US link under the HOME tab here at StartupNation and send your brief story and contact info. I’ll then provide your contact information to the reporter.

Hope this helps bring the spotlight to one of you!

Rich

Well, for most of us, we just want to send out a simple invoice, track our activity and get paid as quickly as possible.

But all of this financial activity can be confusing and time-consuming. And with so many fraudulent companies out there, you can’t be too careful with your money.

Well, I may have found a solution for you.

After spending many years in the credit-card processing industry, Steve Roderick decided to venture out on his own and offer a one-stop resource for small business marketing, online invoicing and electronic billing called gotoBilling.com®, www.gotobilling.com.

And not only do you get to speak to a real human being in their Bozeman, Montana offices if you need help, but all of their services are paperless! Think of all the trees you can save!

I recently caught up with Steve to find out the secret to his success, and here’s what he had to say:

When did you start gotoBilling and why?

We (my wife Stacy and friend Jed) started gotoBilling (GTB) in 2006 in my basement. However, we had developed the fundamental elements of GTB the prior five years and used the separate pieces to fulfill customer needs.

In 2006, we pulled the pieces together to create one complete product. Since 2006, we have added numerous features and enhancements and moved completely to a SaaS business model.

Why is your business unique?

Why is personalized, customer service important to your business? GTB, as an application, touches two large industries; software and payments. Both industries are notoriously bad at customer service.

We felt that in order to be successful, we must add a human element to service and support and that we must deliver answers and solutions quickly and accurately.

The software support keeps a business running and efficient. Payment support involves questions and concerns about money movement. We take both very seriously. We have designed our support based on how we would want to be treated if we were the customer.

How do you exceed customer expectations?

A customer comes to us most often to solve a payment-related issue. However, once they begin using GTB they discover a host of things they can do to improve their business that they didn’t expect or weren’t looking for initially.

When a consumer first engages new software or a new product, they have anxiety over learning and using the service or product.

Our customers are thrilled to find out that we are accessible, knowledgeable and friendly. The simply don’t expect this from a software or payment company.

______________________________

Now, check back on Thursday for the rest of this interview. Steve will reveal how he overcame financial hurdles to have a thriving business in today’s tough economy.

In the meantime, feel free to contact Steve directly at www.gotobilling.com. Or you can send your SEO copywriting and PR questions to me below or at www.rembrandtwrites.com. Thanks!

Senator Baucus took note, and now, Andrew’s idea is spreading across the nation. It was featured on Forbes.com last Friday and numerous other media venues.

You can read his plan here, http://www.printingforless.com/NewLoansForSmallBusinesses.html, and offer your feedback.

You can also see Andrew’s recent television interview at http://www.montanasnewsstation.com/Global/story.asp?S=9688440.

What do you think? Will this work? Let us know your thoughts.

Thanks!

Many of those Americans are fellow small businesses owners who are being forced to use their credit cards to make up for shortages in their monthly cash flow.  The National Small Business Association estimates that 44% of small businesses use credit cards to fund their business.  With setbacks like slower sales, delinquent payments from customers and loss of revenue, credit cards are being used to finance payroll, purchase inventory, and to pay monthly utilities.  Credit card companies are struggling themselves and are panicked by the prospect of consumers defaulting on that $970 million in debt.  This realization has caused many credit card issuers to substantially raise interest rates, cut credit limits, and in some cases revoke credit all together.  Credit card companies are using these tactics in response to late payments, charging over the limit, and simply for being at your account maximum balance. 

While the consumer credit crunch of 2009 will most likely be the biggest struggle for the New Year, there is hope on the horizon.  The good people at the National Foundation for Credit Counseling (www.nfcc.org) have been actively petitioning the credit card companies to establish a workable re-payment plan for consumers to prevent an unnecessary rise in bankruptcies.  On November 18, 2008 the non-profit organization issued a Call to Action outlining a proposal that will help keep consumers out of debt and allow credit card companies to recoup the debts owed to them.  Key points of the debt management plan proposal include a 2% cap on interest rates for credit cards, waiving late and over limit fees, and the option to trim interest rates on the cards to ensure that the outstanding debt can be repaid in 60 months or less.  The NFCC is requesting that these concessions be enacted by March 31, 2009.

If you find yourself or your business struggling with the exorbitant interest rates and reduction of credit that I have mentioned above, I encourage getting help now.  Why spend another day feeling like you are helplessly falling behind?  You can contact the NFCC for a free counseling session by contacting www.NFCC.org and locating a nearby office.  They work to ensure that your best interests are being protected- not the creditors. 

As a successful business owner, running a multi-million dollar retail product placement company, I know first hand how being bad with money can be, and how being cash starved is always fatal.

I hate to admit that I did have money issues as a start up business, and still struggle with tendencies. I think however, if you can see me now, and learn how I recovered to go onto great success, that maybe you can too. Remember, admitting the problem will be step #1. Even as a SCORE counselor, the number one area I counseled business owners on were their finances, both personal and business. They are always reflective of each other.

I made the comment on the Big Idea with Donny Deutsch once that your sloppy personnel financial habits WILL follow you into your business, and I totally stand by it. Check out that show, it may give some good advice that you could use. http://www.youtube.com/watch?v=te1SjoA6VNo&feature=related

I was never particularly good with money, really I was horrible with it. First, I was raised by non-conservative parents who did not see the importance of, or teaching, the value of money. Second, this lack of education opened the door to squandering, and not having the tools to value money.  

Having admitted all this to you, I now want to share some of the valuable tips that helped me turn my financial footprint around.

#1 Tip- Admitting that you have money issues. Recognizing that you need some help in the area of finances is the start. Once you admit help is needed, you will feel a power come over you. Once you know what you’re doing wrong, you can fix it. Indication you may have money issues: You pay so many bounce fees at the bank, that the bank sends you gifts….

#2 Tip- You need to seek out help. You need to take the initiative to find the resources, or someone, to help you in your education process. I always say that you should have a great team helping you through life and business, now is a good time to seek assistance.  You will need to put pride and ego to the side and be willing to make the changes you need to.  Pride has no monetary value at the bank.

#3 Tip- You need to learn the value of money. Currency is only worth the value the government, and you, put on it. Even though it’s physical currency value is only $1.00, 100 pennies, or 4 quarters, and so on, what value you place on money will tell you how much, or not, you respect it.

#4 Tip- Stay clear of people that have the same bad habits you have. You will maintain those traits if you choose to associate with others who have bad influence over you.  Clean out the group you hang with, fly with bigger, better birds.

For many years I felt that money was just paper and that I could use it anytime, anywhere. It had no real value, so therefore it went EVERYWHRE. After being tired of the chicken today feathers tomorrow lifestyle, I realized I needed to make changes in my behavior. If I changed the way I viewed money, looked closely how hard I had to work for it, and not be OK with giving it away, I might just survive this rat race. 

It all boils down to having a respect for money. Being a mother of four boys, I recognized early on that if I teach my boys to be disrespectful to me, they will be to other women. Teach respect initially, and it will last a lifetime. 

If you do not respect and understand your money, you cannot mentally change how you think of it, and use it.  Be considerate of how hard you work for money, and do not give it away. 

I went and found myself a good financial advisor, committed to changing how I thought about money, started living within my means….and low and behold…..the money started accumulating and my financial future improved. Good food for thought!

Always DREAM BIG!

 Kim Babjak

It may have taken the shape of a loss of data, or a short-fall in needed cash. Perhaps it was a lawsuit or a personal medical situation. Who knows - it could’ve been an unexpected tax hit or maybe even a key customer pulling back from a large order that you’d considered “in the bag”.

We had our own crisis last month when this website was attacked and disrupted by a “hacker-bot”, a new term for me and one I’ll always wince at when I hear it in techie conversations.

This coming week I’m going back on CNBC’s The Big Idea to discuss how to deal with crises like those mentioned above. I’m wondering if any among you would like to be featured on the program to ask your burning question about how to deal with a crisis you’re experiencing. The show will air next week on Tuesday, barring any pre-emption.

So, anyone dealing with a crisis at their business? Been through one recently and want to avoid similar situations in the future? Please share your comments below and/or volunteer to be considered for the show by satellite uplink from your town’s local TV station.

If preferred, as an alternative, you can use this link to contact me, too.

Rich