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OWNING A

SYSTEM

D AY S I X
OW N I N G A
SYST E M
With the right system in place, you can make more money than you ever thought
possible.

Rich people don’t simply own one thing, and allow that thing to cap once the re-
sources have hit their limit. Instead, they own systems that are able to grow and
scale to new heights—allowing the entrepreneur to make more money than was
previously possible.

Here’s the difference in mentality between a rich and poor person when it comes
to scalability:

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Essentially, poor people lack the ability to think BIG. Everything they do is on a
smaller scale, and they are either too afraid—or don’t know how—to grow it any
larger than what they can do by themselves.

This is what fundamentally separates people from the S and the B Quadrants. The
S Quadrant creates self-employment, while the B Quadrant creates sys-
tems.

Let’s take a quick look again at the advantages of the B Quadrant, and how building
a business is much more advantageous than creating a job for yourself…

There are three essential benefits that the B Quadrant has over the S Quadrant:

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THE ADVANTAGES OF THE B QUADRANT

1. Not trading time or energy


for money.
2. Tax benefits.
3. Owning a system where
you can utilize OPT (Other
People’s Time).

When you have a system in place,


you are leveraging OPT to make
TM
you money, which means your
ability to grow is only limited by
the amount of people that you
have working for you.

Instead of trading away your time


and energy trying to do everything yourself, you are able to rely on others to get the
things done that you either aren’t good at, or don’t want to waste your time doing.

This, of course, is predicated on you wanting to be directly involved at all.

That’s the other great thing about being in the B Quadrant—once you get to a certain
size, you can step away and let the business run itself! From there, you can either sit
back and relax, or continue to build your empire by purchasing or building new busi-
nesses.

Sure, you’ll want to check in on your business here and there to make sure you are con-
tinuing to turn a profit, and that your employees aren’t breaking any laws, but outside
of that, you can let them do their jobs.

The B Quadrant also comes with tax benefits that you will not receive when you are in
the S Quadrant. There are a series of write-offs that come from hiring employees and

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running a business that the S Quadrant doesn’t get.

Actually, the government discourages people from being in the S Quadrant. Instead,
they want you to be creating jobs, and affecting the economy on a greater level.

While we’re on the topic, let’s discuss how the S Quadrant isn’t ideal, while the systems
that the B Quadrant allows you to create provide exciting opportunities for unlimited
growth.

SYSTEM VERSUS SELF-EMPLOYMENT


What it really comes down to is how much freedom you want…

If you want to work long hours, make less money and pay higher taxes—by all means—
the S Quadrant is for you. Obviously this isn’t what you want, but that’s what you will
get when you create your own job.

Being self-employed means doing everything yourself—even things that you aren’t

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really qualified for. Not only
will this cost you money (be-
cause you are trading it away
for time), but it will also cost
you clients.

This is especially so if you ar-


en’t any good at sales, or deal-
ing with your clients directly.

I’ve known some very talented people who decided to strike out on their own and quit
their jobs to become freelancers. The results are often a mixed bag, but never any-
where near the results they would get from putting a system in place.

Let’s look at an example. We’ll call her Jenny.

Jenny is a talented graphic designer, and she is working for a major ad agency in
downtown Chicago. She likes her job, but she hates her boss and she realizes that she
is being undervalued.

She decides to interview at a few different agencies, but they all want to pay her around
the same amount—especially because she would be new there. This is frustrating, be-
cause Jenny sees people she knows making a lot more than she is freelancing.

Jenny finally decides to quit her job and become self-employed. She feels liberated
doing this, but it quickly dawns on her why the rest of the agency she worked at exists.

She tries to find clients, but realizes that she is terrible at sales. Although she is getting
by on referrals, she sees that this won’t last. In desperation, she drops her rates, and is
now making less than what she made at the agency!

The clients she does have, she’s terrible at retaining. She’s not good at identifying her
customer’s needs, so she misses a lot of opportunities.

When we look at this example of Jenny, we see that there are parts of her self-created
job that she isn’t good at. Because she is doing it all herself, though, she is stuck with

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what she can produce on her own.

If Jenny decided to hire people for sales and client management, she would be able to
focus more on graphic design. When it came time to pay those salespeople, she could
hire an accountant to make sure the books are kept and everyone gets paid on time…
and so on.

Jenny’s example shows you that trying to do everything yourself is exhausting, and
counter-productive. Instead, you’ll want to have a system in place that grows your
business, without forcing you to do what you aren’t good at.

When you own a system, you are able


to hire other people to do the work for
you. You can hire people to do…

• Sales
• Accounting
• Copywriting
• Management
• Legal
• And so on

No matter how well-read and intel-


ligent you may be, there’s very little
chance that you know how to properly
handle all of these different services,
plus everything else that isn’t listed.

As a business owner, though, you can hire people to take care of all of these different
jobs—freeing you up to focus on growing your business and making money.

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SCALING / DUPLICATING YOUR SYSTEM
Part of what makes a system such
an effective way to build wealth is
the ability to scale or duplicate your
system. Remember, systems aren’t
limited—they are meant to be grown
and developed.

There are two different types of scal-


ing that I want to go over:

• Horizontal
• Vertical

Each of these allow you to make a lot of money, by scaling in different directions.

H O RIZONTAL S CALING
When you scale horizontally, you are growing outwards. What I mean by this is that
you are diversifying your products or services, allowing you to sell a variety of new
items to attract new clients.

Let’s say that Jenny had decided to go the other route and put a system in place. While
she is a graphic designer and knows a lot about graphic design, she may have come to
the conclusion that she shouldn’t stop there.

Instead, she should start her own agency.

In order to do this, she needs to scale horizontally. She needs to hire different people
to create services that she didn’t previously have available, like copywriting and brand
development.

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When she diversifies, though, she’ll be in a position to make significantly more money
from new markets.

V E RT ICAL S CALING
Let’s say that Jenny hires a team of different creatives, and starts picking up new cli-
ents. She then decides to stop going after small fish in a pond, and start going after big
fish in the ocean!

The problem is that Jenny doesn’t have the staff that will be required to work for big-
ger clients. Because of this, she will need to scale vertically.

This simply means that she will need to grow more of what she already has—which
means hiring more people to fulfill the services that her company already provides. So,
more copywriters, more marketers and even more graphic designers!

The great thing about scaling vertically is the fact that you can keep getting bigger and
bigger until you control most of the market! This may take years—if not a lifetime—to
do, but it is a possibility!

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D UP LICATION
Once this has been accomplished, the process can simply be duplicated. Jenny can
start another business, or she can grow different branches of her current business.

While agencies can now function globally, she may need different locations in other
countries that know their markets, and can speak their language. This gives her oppor-
tunity to build new offices, and grow even bigger!

YOUR SYSTEM WORKS FOR YOU


When you put the right system to-
gether, they will do the work for
you. This means you’ll no longer be
trapped in a cell built of time and en-
ergy restrictions.

Be ambitious and grow a business,


instead of creating a job. Do this by
putting a system in place, and see
your money multiply like it never
would have before!

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