The rat race. The definition by Robert Kiyosaki is basically a rat wheel that you constantly run on split up in pie slices. Each slice can be a paycheck, a liability, or an opportunity.

Getting out of the rat race means that your passive income exceeds your monthly expenses. Passive income is money that you make on your own rather than get by working for someone else. You can obtain passive income by buying and selling stocks, investing in real estate, and starting a business.

The key to your businesses success is to lower the expenses and bring in the profits. In order to do that you have to learn how to use leverage. For example if you bought a $150,000 2-unit property you would not pay $150,000 in cash. You would offer the least amount of out of pocket cash and get the seller to finance the balance, or take out a loan. In business, you would seek out strategic partnerships with other companies that help your company grow and run more efficiently.

Strategic partnerships would be maybe a call center that handles pay per performance cold calling. They would work hard to make a sale so that they make a profit. Such a partner would cost you zero risk because in order for you to pay them any money you would be getting money from the new sale to cover that payment.

Leverage is what rich people and large busiesses use in order to expand at an explosive rate. You will notice that the average Joe that works 40+ hours per week seems to live paycheck to paycheck. Even the middle class seem to overlook leverage and their entire life is spent paying off credit card debt.

As a business, your leverage starts when you hire people to do the daily tasks that take up so much of your time. A company should have a complete sales force to bring in and close leads; a team of developers (or workers) to get the actual work done; and customer service people to handle client relations and general questions about your business.

In addition to leveraging your time, it is necessary to manage the entire team with a weekly meeting. This will allow you to make sure everyone is on the same page and are no less motivated than they were when they started working for you.

While a team is an important thing to have, it means nothing unless you can treat your employees with respect and compassion. Your employees need to know that when they go to work for you they will not be bored out of their mind. Your workforce should remain strong and efficient.

Resources:

• GoToMeeting - A virtual conferencing solution to bring your virtual staff in for regular meetings.
• Craigslist - A good place to search resumes and a starting point to building your team.

I have been working on setting up a couple of websites that are meant to be self-propelled. One such website is a real estate listing website. It gives free listings, with a limit, and a bunch of tools for sellers and buyers. The second one is a myspace code website with a unique twist.

The reason I created the websites is to generate an income that is residual and needs little maintainance on my end. Hopefully it will free up some of my time to spend with my family and vacation.

The only way to clone an idea and make it a success is to make yours unique. Make it different than what has been done. Sometimes it is easy to come up with an idea. Sometimes not.

If you have an idea, you should turn it into a reality though. That way you know if it could be a success or not.

If you have ever hit rock bottom you probably know what it feels like to think the world around you is crashing. You think you are all out of resources and you can’t get yourself out of a hole. Such feelings are often not true at all.

No matter where you live, even in a 3rd world country you can make things happen and move on to a better life. It is all a matter of making the change mentally. If you have no idea what I am talking about you can pick up a book called “Rich Dad, Poor Dad” because that mentality is beyond the scope of this post.

Once you decide you no longer want to be limited to your surroundings you can start a business. Yes, even in a 3rd world country you can start a business. I have been mentoring a guy in Africa who came to me one day a few years back saying he wanted more out of life but people in his Country were thought of as scam artists. I honestly thought he was one as well because I was scammed by another person in the same Country before. But I talked with him anyway and gave him advice.

Well who knew… He actually went and read every single book I told him to read about business. He came to me a couple years later with newfound knowledge and determination that I don’t see in many Americans anymore. I was impressed.

Now I speak with this man regularly. He often brings up the fact that he is limited by his surroundings and I told him that was just an illusion. I told him how he can easily setup a business, get a website online, and market his business worldwide. I told him how to use the power of leverage and reselling ability in order to make money so he can travel to a nearby Country and gain citizenship. I told him how once he was a citizen of the other Country mere miles away that it would be easier for him to get opportunities.

He has dreams of coming to America one day and I feel that I have prepared him for success once he gets here. While it will take work for him to make that happen, he can better his life right now by making the move to the other Country and gaining clientel with his new business. He would not be dependent upon employers or anyone else for that matter.

As for his business he is taking it very seriously now. He has found a merchant so he can accept credit cards securely through a trusted 3rd party. His clientel can be from anywhere worldwide.

I understood his situation because at one time I had hit rock bottom. I was even homeless before. I simply decided to stop feeling sorry for myself and I got myself a job. I took that and leveraged myself into a roof over my head. I went further with determination to start many businesses since then. I understand how customers feel and what they want and I make that happen for them and my business grows because of it.

I fealt the need to share this story with you because no matter where you are, or what situation you are in you can start a business and take control of your life. You can get a website built and take your company into the current century. If you already are in business and you feel it is failing then you need to look at it from another angle. You need to figure out why it is failing and correct it.

I hope this helps someone…