CashFlow Quadrant/ESBI Theory

According to the CashFlow Quadrant (ESBI) developed by Robert Kiyosaki, the author of best seller book “Rich Dad Poor Dad”, everybody falls into one of the quadrants: ie, E – Employee, S – Small Business or Self Employed, B – Business Owners, I – Investor.

The left quadrants, E and S form the category “Active Income” and right quadrants B and I form the category of “Passive Income”.

While 95% of population is in E/S quadrants, Active Income category, only 5% of population is in the B/I quadrants, the Passive Income category. But, when the resources or wealth are taken into consideration, persons in the left half possess only 5% of wealth. Whereas, 95% of wealth is enjoyed by the B/I group.

This disparity of wealth is due to the reason that the Business Owners and Investors keep on generating income even when they are asleep or away from the business place. But, when the E/S people stop working the income stops then and there.

Therefore, one thing the Pandemic taught us is that we need to get into the B/I or Passive Income category at the earliest so that we shall be well prepared to face the challenges raised by surgical strikes of Covid or anything else. After all, we are not sure what is in store after Covid-19. We should ensure that whatever strikes us, we should continue to get our income without any hindrance.

Of course, It is going to be a sudden transformation in all senses. Till this time, you were an Employee or Small Business Owner/Self Employee. Now that you have an interest in becoming an Entrepreneur all of a sudden, I am here to give you a helping hand.

A lot of fears might have arisen in your mind. What about the huge investment required to start a business? How can we find customers in this Corona time? What if the business fails and we lose everything? What if the staff agitate for more salary and perks? And, many more such doubts!

Well, if I tell you that there is no need for any investment to start an eCommerce business you would probably not believe. If I tell you that you do not need anything other than your smartphone to start an eCom business you would probably not believe. But believe me all these statements are absolutely true. There is not even the slightest exaggeration in anything.