“You have advised that if I want to increase my wealth I should focus on earning income from my own business. I have a full-time job and I don’t have much time or extra funds to put towards starting a business or making any investments. Given these limitations, how can I possibly own a business?”

We have been looking at some of the steps recommended by several financial experts that can help you to increase your wealth and achieve financial security. Robert Kiyosaki, in his insightful book, CASHFLOW Quadrant, advises that owning a business should be an important element in your personal wealth accumulation plans.

If you really want to be financially free, it’s important to create an income source that is independent of your personal work efforts.

According to Kiyosaki, owning a business system is an integral part of creating this freedom. However, running a successful business is not a hobby or part-time exercise; it takes time, courage and determination.

Many employed persons find it very difficult to imagine themselves as business owners. Some do not have the inclination to get involved in entrepreneurial activities, while others who might have a secret longing to ‘do their own thing’, never act on their dreams because of time constraints or financial challenges.

Business income from networking

If you do not have a lot of free time, capital or knowledge to start your own business, Kiyosaki encourages you to become a part of an established and proven business system through a network marketing or direct selling company.

Network marketing organisations recruit independent representatives to distribute the companies’ products, and allow these persons to create their personal network of independent business owners. The representatives are rewarded with commissions from direct sales and a percentage of the revenue generated by their teams’ efforts.

In Rich Dad’s Business School For People Who Like Helping People, Kiyosaki asserts that the network marketing model is an effective way of building a business. Your personal work is duplicated exponentially, he confirms, when the energy and efforts of many people are utilised in growing the business.

A true business owner “values a great team to help them to serve many people”, Kiyosaki declares. Since a network of business owners can grow into the hundreds, it can be just as effective at creating wealth as a traditional business in which employees are hired to carry out different job functions.

Business education from networking

Kiyosaki points out that your current income is not the determining factor in your future success; your financial education plays a more pivotal role. Most employees are not getting on-the-job instruction that teaches them how to attain financial security. “Is your job training you to earn over a million dollars a year or more?” he asks. “If not, seek better education.”

Kiyosaki believes that good network marketing companies can provide ‘life-changing’ education that is essential for business and financial success. When evaluating an organisation, first find out if the company is truly interested in training you. “Seek out the people at the top,” he advises, “and ask yourself if you want to learn from them.”

One important business skill that you can learn through network marketing is the ability to sell, Kiyosaki notes. “When I find a business struggling financially, it is often because the leader of that business cannot sell.” He states that excelling at sales is vital for wealth creation, as “when someone is poor and unsuccessful, it is because he has failed to sell something.”

Kiyosaki explains that most people are not against selling, but are afraid of rejection. The sales training and mentorship from leaders that is usually provided in networking businesses can help you to face and overcome your fears about selling. “Learning to sell is learning to overcome the loser inside of you, and learning to bring out the winner in you.”

Business freedom from networking

The network marketing model can also help you to achieve a business that truly brings personal freedom. A major challenge that many traditional entrepreneurs face is that their companies may not be sustainable without their continued input, as the owners are usually considered the main leaders of their organisation.

In network marketing, business owners are encouraged to develop the leadership skills of their team members. This focus on leadership development helps new representatives to learn how to manage their own businesses and to teach others to do the same. In this way, business owners can effectively duplicate themselves and achieve real financial freedom.

Kiyosaki reveals that good networking companies emphasise the importance of achieving your financial goals. “Many traditional companies don’t want people to have personal dreams,” he admits. It’s important to hold on to a vision of a better life if you want to be financially successful, as “many people are poor because they have given up on dreaming”.

So if you currently lack the funding, experience or time to start your own enterprise, then joining a network marketing organisation might help you to create a satisfying business income.

Copyright © 2011 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, April 14, 2011

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Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl