Pinoy Business Coach

The one thing that has stuck in my mind when creating a business is a lesson called the 3 E's. This idea has been proliferated by the great business educator Robert Kiyosaki (author of Rich Dad, Poor Dad) and is essential in understanding the process of enterprise creation:

The 3 E's stand for : Education + Experience = Excessive Cash

This was a totally new idea when I first read it and it did not automatically sink in but I guarantee you that when you understand this simple concept, you will see a whole new 'light' regardless if you are a budding Entrepreneur or one who is experienced in the world of business.

The theory states a simple equation for acquiring excessive cash. By acquiring Education (Financial) and gaining Experience (Business), which means doing the right things based on certain business fundamentals and applying them to any business regardless of what it is, be it a hot dog stand, a small bakery, a sari-sari store or a water retailing station, one can be able to produce excessive Cash.

Business Education- when this is implied, most of us would think that this can be acquired from the school system. One would think of studying Management and getting a degree in business, although that can help but I am more for the "Self-Education" side of business. It is by acquiring knowledge from RELIABLE SOURCES, credible AUTHORS and trusted sources that can greatly contribute to a sound business foundation. Being careful on where you get your information about money and business is a crucial step. Make sure you get your information from people who are doing what they are teaching and not from teachers who just know a lot of theories and who are not in reality, business people. One of my favorite sayings is "How can the blind lead the blind?"

Business Experience- this is acquired by applying the concepts, principles and ideas that one has gathered in an actual business endeavor. The only way for you to validate sound principles is when you actually do them. We learn by DOING. Be it Accounting, Marketing, Legal, Product, Sales etc, the Entrepreneur needs to have a working knowledge in these areas and apply basic, sound and time-tested principles inside an actual business to be able to gain good, solid experience.

Excessive Cash- Cash is just a Score Board of how you have been doing in the first 2 E's. It is a way of measuring if you are doing a good job in educating yourself and applying the things that you have learned. Money is just money. Others begin to become elated and 'swell-headed' when the excessive cash comes in, others begin hunting for things to buy and useless goods that tend to depreciate in time. Others become complacent and stop learning and applying the things they know. There are several attitudes that one needs to identify and temper where money is concerned. Ultimately, it is the Process that makes us rich and not the money.