And the third quadrant is the Business Owner.
The “B” type is almost the complete opposite of the “S” type. An S-type person prefers doing everything themselves because they believe no one else can do the job better. A true B-type person thinks differently. They prefer building systems and surrounding themselves with capable people from all four quadrants: E (Employee), S (Self-employed), B (Business Owner), and I (Investor).
For a B, delegation is not a weakness - it is the main strategy. Their mindset is simple: why do everything alone when you can hire skilled people to do it better, faster, and more efficiently? This frees up their time and mental energy to focus on bigger decisions and long-term thinking.
Henry Ford is often used as a real example of this mindset. According to a well-known story, some intellectuals once tried to prove that Ford was not very knowledgeable. Instead of arguing with them, Ford calmly invited them into his office. They began asking him difficult questions. After listening for a while, Ford reached for the telephones on his desk and called in his team of experts. He asked them to answer the questions directly.
Afterward, Ford explained that he prefers hiring smart, educated people so they can handle detailed questions and problems. This allows him to keep his mind free for more important work - mainly thinking and making big decisions. He is also known for the idea: “Thinking is the hardest work there is. That is why so few people engage in it.”
Robert Kiyosaki explains that his “rich dad” admired Henry Ford and people like John D. Rockefeller. Rich dad believed that learning business leadership means understanding both leadership skills and technical business skills. Many people might have one or the other, but to become a strong B, both are necessary. These skills can be learned over time, and business is both a science and an art. For Kiyosaki, learning both never really stops.
When he was young, his rich dad gave him the children’s book Stone Soup by Marcia Brown. This book was used as part of his early training in leadership. Rich dad defined leadership very simply: it is the ability to bring out the best in people.
Because of this, he trained Kiyosaki and his son in practical business skills such as reading financial statements, marketing, sales, accounting, management, production, and negotiation. At the same time, he constantly reminded them that success depends on working well with people and leading them effectively. He often said that technical business skills are not the hardest part - the real challenge is dealing with people.
Kiyosaki still rereads Stone Soup as a reminder. He admits that when things do not go his way, he can sometimes act more like a controlling tyrant than a good leader, so he uses those lessons to correct himself and stay focused on true leadership.
Entrepreneurial Development
A common idea people often repeat is: “I’m going to start my own business.” Many believe that financial security and happiness come from doing something on their own or creating a brand-new product that nobody else has thought of. Because of this belief, they quickly leave their jobs and jump into starting a business.
From Robert Kiyosaki’s perspective, this is often the path many people choose when they are driven by the desire for independence and wealth. However, the key point behind his thinking is that people often act on emotion and assumptions, believing that owning a business automatically leads to success without fully understanding what it actually takes to build and sustain one.
Many people end up starting what is known as an S-type business instead of a B-type business. Neither one is automatically better or worse; each comes with its own advantages, disadvantages, risks, and rewards.
The problem Robert Kiyosaki points out is that many individuals who aim to build a B-type business end up creating an S-type business instead. Because of this, they get stuck and struggle to transition toward the business model they originally wanted.
He also notes that many new entrepreneurs begin with the intention of building something scalable and system-driven, but their actions often lead them into a self-employed structure instead.
But they wind up doing this instead and get stuck there:
Many then attempt to do this:
Only a small number of people who try to move into these areas actually succeed. The reason is simple: each of the four quadrants requires a different set of abilities and a different way of thinking. The skills needed to be an employee are not the same as those needed to run a business or invest.
Success in any one quadrant is not automatic - you must deliberately learn the specific technical skills and develop the right mindset for that quadrant. Without adapting to what that position demands, real success is unlikely.
Stay tuned to learn the difference between an S-type business and a B-type business!
