Learn What The Rich Know: Pillar 4.2 - The B-I Triangle

Five Management Tiers

• Cash Flow Management
• Cash flow management means financial literacy—the ability to read and make sense of financial statements.

Rich Dad Cashflow 101 board game (with CD's)

• Communication Management

• Much communication is devoted to activities external to the company, such as raising capital, sales, marketing, customer service, and public relations.
• Internal communication is also important—sharing the company’s successes with the entire team, staying in touch with advisors, and having regular meetings with employees.
• Investors, advisors, and employees can get away with speaking the language of their specialized areas, but the entrepreneur—leader of the flagship—must speak the language of all.
• Through stories, the leader motivates the team to fulfill the mission.
• “All great leaders are great public speakers.”

• Systems Management
• A business is a web of interlocking systems. For it to grow, a general director must be in charge of making sure all systems operate with maximum efficiency.
• The pilot isn’t part of the system—he or she is merely managing it.
• Systems managed in a typical B-quadrant business include:
• Product development
• Office operations
• Manufacturing and inventory
• Order processing
• Billing and accounts receivable
• Customer service
• Accounts payable
• Marketing
• Human resources
• General accounting
• General corporate
• Physical space
• Computer systems

• Legal Management
• Legal fees may seem expensive at first, but it is much more expensive to lose the rights to your property or to get embroiled in litigation down the road.
• Some areas of the law where attorneys can prevent problems:
• Contracts
• Intellectual property
• General corporate
• Shareholders
• Labor
• Consumers
• Securities and debt

• Product Management
• Whatever it is, in one sense the product should be viewed as the least important part of the business. Take away the rest of the B-I triangle and the product has no value.

• The key lies in putting together systems that can function without you.