Understanding the Cashflow Quadrant: What Is the Difference Between an S Business and a B Business?

The Cashflow Quadrant is the creation of Robert Kiyosaki and is a barometer for determining what your priorities as an individual are. The differences between an S based business and a B based business may not be large in comparison to your income but the lifestyles they create are vastly disparate.

My uncle owned his own retail shoe store when he first heard about the cashflow quadrant. He placed himself in the B quadrant and thought that was that. A few years later, when he returned from a short vacation, he realized he was self-employed.

Two of his employees had quit while he was gone, and a third was threatening to quit.

This was a mindset change for my uncle. His shoe store was a 4th generation business. In particular, my uncle's father drilled him every day to know the state of his business, and not let other people have the reigns.

My uncle was not quite the controlling person that his father was so he was not there to open the store or stayed late to close the doors. But he did keep himself involved enough that his absence significantly effected the outcome of day to day operations.

An S based business can be wildly successful. Lawyers, Doctors, Steemit authors, or Traders can make millions in a year. There income will always be dependent on their presence in the business. If something happens to them, the income of the business loses its catalyst.

The B Based Business

"The definition of wealth is: the number of days you can survive without physically working (or anyone else in your household physically working) and still maintain your standard of living." -Robert Kiyosaki

We build B based businesses so that we can have lifestyle. A lifestyle is when we have time and money.

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The difference between a B based business and an S based business is a system. In an S business, an individual is the system - my uncle found that out after his vacation.

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A B based business is designed so that a system runs the business. Steemit can become a B based business for you with tools like Steemvoter and Streemian.

With enough Steem Power, you can set automatic voting to occur such that you are making several hundred dollars a week from curating. Depending on where you live in the world, that may or may not be enough to have a lifestyle - in the U.S. it could be the average income of an American.

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Since you are reading this article, you have the opportunity to build a B based business on Steemit. We are still in the early adopter phase.

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We write articles to connect with people, build a following, earn Steem Power, and build a business. There will come a day, that if we wanted to, we would not have to write an article every day or even once a month.

I enjoy writing, so I don't think I will stop completely. But the idea of receiving several thousand dollars a month by simply setting up a curation bot excites me. That doesn't mean I stop interacting with people (though an introvert with the Steem Power could do such a thing) but it does mean that the work I am putting in now is building a system that will one day work for me.

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Thank you for visiting. me for more great content.

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