Education in America could use a big dose of innovation. How about one public school system for employees, and another for entrepreneurs? Leave your comments at the end!
In the summer of 1932, presidential candidate Franklin Delano Roosevelt promised, “I pledge you, I pledge myself, to a new deal for the American people.”
Today, it is time not for a “New Deal,” but a “New Mission.”
America’s schools need to take a page from the businesses that have been created by entrepreneurs over the past decades. Henry Ford, Bill Gates, Steve Jobs, Sergey Brin and Larry Page have all given us the road map, but the path toward entrepreneurship is often the road less traveled America’s schools.
The U.S. unemployment rate is currently 9.7% in what many call a “jobless recovery.” So what should we do? The problem and the solution can be found in America’s educational system and its current mantra: “Go to school and get good grades, so you can get a good high-paying job.” In simpler terms that means, “Go to school to become a good employee.” But there are too many employees, which is why we have an unemployment problem. Today, kids just out of school aren’t finding jobs. At the same time, many of their parents are going back to school for retraining. But they’re not finding jobs, either.
The idea of a high-paying job for life is truly an American dream — but no longer a reality. With low-priced labor and lower-priced, higher-performance technology, high-paying American jobs will be disappearing at greater speed as they move overseas.
Two-track system
America’s education system needs an injection of innovation — which is just what entrepreneurs do. We need two different public school programs: one for employees and one for entrepreneurs.
The way to train entrepreneurs is almost exactly the opposite of the methods used to train employees. Another common thread about Ford, Gates and Jobs is that they all dropped out of school. This is not to say education is not important, but training entrepreneurs is different from training people to be employees. It is much like the difference between traditional education and the military academy model.
Many of the lessons I drew upon to write my book, Rich Dad, come from the U.S. military academy system.
In 1965, I left a sleepy sugar plantation town of Hilo, Hawaii, and journeyed to Kings Point, N.Y., to attend the U.S. Merchant Marine Academy. With four years at the academy and six years as a Marine Corps pilot, including two trips to Vietnam, I gained many of the real-life skills and character traits I count on today as an entrepreneur.
Success in the military is a great bellwether signaling achievement in business. For example, the Israeli Defense Forces are a breeding ground for education and entrepreneurs, where many serve in units specializing in military technology. At the beginning of 2009, the 63 Israeli companies listed on the Nasdaq, many led by former IDF members, outnumbered those of any other foreign country, according to the book Start-up Nation by Dan Senor and Saul Singer. There are simple lessons here for America’s gridlocked education system.
If I were running America’s schools system, I would create the U.S. Business Academy for Entrepreneurs, modeled after our federal military academies. Admissions would be via congressional appointment along with nominations from community business leaders. The entrance exams would be rigorous; the curriculum would be very different from traditional colleges.
On first day at any of the five federal military academies, each student is required to memorize the academy’s mission. In the military, mission is more important than life. After leaving the Marine Corps and starting my own business, I found many executives with MBA degrees focused only on money. Money was their only mission. If they could cut expenses by firing employees, so be it. This was unconscionable at the academy and the Marine Corps. As military officers, our mission was to serve our country and bring our troops home alive. It was drummed into our souls that our mission was more important than our lives.
The mission of the U.S. Academy for Entrepreneurs would be to create sustainable, well-paying jobs for employees by aggressive growth of the business. Too many executives are trained to grow the business through mergers and acquisitions, using massive amounts of debt. Though this might make shareholders happy, in most cases it rips the soul out of the business, loading it with debt while putting the jobs of employees at risk.
Creating real jobs
If corporate executives cannot grow a business organically, they will often repurchase their shares to make it look as if the share price is going up — again to keep shareholders happy and the CEO employed. This is business manipulation, and not the true mission of a sustainable business. The lesson learned is, a loyal employee is not as important as money.
The U.S. Business Academy for Entrepreneurs would have only real entrepreneurs as teachers. I would ask that they work for only $1 a year (think of the great entrepreneurial CEOs who have turned around their businesses doing the same). You see, if they were real entrepreneurs, they would not need the money. They would teach for the same reason the students are there: the mission to create entrepreneurs who create sustainable jobs for the country.
Whether you agree with me or not, I hope it’s clear that we need to create more entrepreneurs — since only entrepreneurs can create real jobs.
We need to pledge ourselves to this New Mission: job creation by those who are true job creators.
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This is a video that really drives home the point that the “bailout” Washington D.C. is doing DOES NOT WORK, and there are others who fill the void. No matter how you look at it, it looks like small business loan sharking, but it is better than no loan at all.
Would you do business with this type of guy?
So if we can’t find money from friends and family we might have to resort to these types of folks. The regular banks have seemed to turn tail on making loans to small businesses. What I am curious about is if small businesses are the engine that pull the economic train why isn’t there some sort of economic program set up by the SBA to get these types of loans in place? In my understanding the SBA does NOT make loans, they help guarantee the loans that the small businesses must get from the banks on their own merit.
While the lobbying efforts for Fortune 500 companies is substantial there really is very little lobbying for small businesses that is effective. If small businesses we just able to do two things:
1) be able to secure affordable loans
2) be able to get group coverage for health insurance at substantial discounts
We just might see the economy rebound significantly. Think about this just two simple things could get the economy jump started. Instead it seem like we have a snake trying to eat a horse with the new healthcare bill and the snake is not digesting it so well! ;-0)
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Small Business Lending and Loan Sharking
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In this day and age I am constantly confronted with decisions. I am also constantly barraged with information of others whose business ethics are simply wrong. They know it when they do it but because they can at the expense of their employees or clients. Take for example WalMart. In this CNN Money article there appears to be a trend where they are dumping brands for their own private labels. This is called the power of market share, WalMart owns the retail space. At the same time, the product company has the opportunity to come back should they spend heavily on advertising to get the users into WalMart’s stores.
Technically there is nothing “wrong” with this business practice, however is WalMart doing the right thing? Are they giving their clients the best products at the lowest prices? Maybe maybe not. What if let’s say that Kimberly Clark is in the toilet paper business. Let’s say they get squeezed out by WalMart because they choose NOT to pay for the additional advertising to be on WalMart’s favored status list. Let’s say Kimberly Clark has a $5 Trillion imaginary contract with the largest pulp manufacturers Big Pulp Mfg. Co. What if WalMart also had a $500 Billion contract with Big Pulp Mfg. Co. Kimbery Clark would rank over WalMart.
Let’s say there is a new beetle that destroys most of the trees in Big Pulp Mfg. Co. and demand goes through the roof. Big Pulp Mfg. Co. decides to reward Kimberly Clark with paper allocation and not WalMart. Now WalMart customers run out of ass wipe. Oh my, Houston we now have a problem of epic proportions. WalMart begs Kimberly Clark to sell them their toilet paper. However, the relationship is destroyed and there is no longer any trust, so Kimberly Clark decides to return the favor by selling to WalMart as such a high price it prices WalMart out of the market. This is what is known as a pissing match and no-one wins especially the consumer.
We are seeing similar business model fluctuations with Google taking over the Yellow Pages, Book Publishing, Newspaper Advertising etc. While market supply and demand don’t involve business ethics necessarily many businesses have become dependent on Google either for SEO or PPC or traffic in general, they literally have the power to make a break companies by deindexing them. And have done so for various reasons. So they say, “do no evil.”
So on a smaller scale for small businesses we are faced with similar situations almost on a daily basis just not as visible. When it it OK to bend the rules a little and get the competitive advantage and when is it not? I guess we have to ask ourselves that and search deep down for the right answer, or ask our colleges and mentors for guidance. If you are “too ethical” I have found to be on the losing side so there is a fine balance. In this era of “gotcha” bad news travels fast and it only takes one bad incident to destroy a life time of creditability, ask Tiger Woods.
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Let me start off by saying I am “out of integrity.” I am out of integrity with myself on too many occasions. For example, I tell myself I will go to the gym today, and guess what? The exercise to the refrigerator is a whole lot more enjoyable. (However today I actually did make it to the gym!) But I can tell you I had a task on my written to do list and I have not done it yet, I chose to write a blog post instead. I’m supposed to call a client on their content and just don’t want to, it will require me to think about their content which I want to do but don’t want to actually have to think about it. Now I know I can wait another day to do this but it just makes the flow of the project and the organization a little messier.
My integrity in the workspace really has more to do with my personal integrity with self. Because no-one knows about this other than me. I do my best to follow through on my word all the time and every time weather it be personal or professional because I treat others differently than myself, I am kinder to them than to I. I follow through with them than to I and I think you will hear that if you talk to friends and colleagues.
But back to integrity in the work place. It is these little types of things that break down communications, they then break down relationships both personal and professional. A glaring example is Tiger Woods saying “I do,” but what he really did was something entirely different. He was out of integtity with himself and his family and who knows who else. How many times in the workplace have you had a boss or a client say I will call you tomorrow with the <fill in the blank> and the call never comes. Guess what? You are left hanging.
There was probably some justification for not making the call but that person is out of integrity in the workplace as well as personally out of integrity. S/he made a promise to call and did not follow through. I can guarantee you that this happens ALL the time. We tend to be blaze about it, and say “oh they are just that way.” But at the end of the day weather it be a promise to your kid or a promise to your boss we get much better results in life by doing what we say and saying what we do.
So I will make that call to the client regarding the content. 
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Integrity in the Workplace
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Robert Kiyosaki recommends MLM Home Based Business
Perhaps best known for his financial education products, Robert Kiyosaki wrote this latest book to praise the benefits of owning a network marketing business. Although Kiyosaki made his wealth traditionally, without the help of a network marketing business, he believes that these businesses are the wave of the future because they embody the new Information Age economy. He believes these businesses are a good way to begin your journey to become rich.
Rich Dad’s the Business School: For People Who Like Helping People (Second Edition)
Kiyosaki begins by reviewing the several ways that one may become rich. However, the path offered by his Rich Dad may be the most realistic and also hold the greatest profit potential. Rich Dad’s path to success is simple, "build a business first, reinvest in the business second, buy real estate third, and only then buy luxuries paid for by your assets" (98). Most people fail because they lack the discipline and perseverance needed to follow through with the plan. This behavior often characterizes those who lack emotional intelligence. A successful person possesses analytic, financial, and emotion intelligence. Such a person succeeds by understanding that success is accelerated through the process of "rejection and correction."
Kiyosaki prefers network marketing businesses because there exists very few barriers to entry. Those who succeed in network marketing are able to combine their ability to sell and lead with their love for teaching. Kiyosaki writes, "Your job is to clone or duplicate someone just like you" (58). This is what ultimately determines the success of any network marketing business.
When convincing others of the value of a starting a "personal franchise," more commonly known as a network marketing business, be sure to cover several important areas. First, refer to the cashflow quadrant to inspire motivation and provide direction. Second, emphasize wealth rather than income (a.k.a cashflow versus capital gains) by explaining the income statement and balance sheet and how acquiring assets, specifically businesses, is crucial to developing long-term passive revenue streams. Third, introduce Metcalf’s Law. Succeeding in a network marketing business demands the practical application of Metcalf’s Law, which states that a network’s economic value grows exponentially with the number of network users. Fourth, remind others of the fact that network marketing is the fastest growing business model in the world today. Big companies such as AOL Time Warner, Berkshire Hathaway, and Citibank all utilize network marketing. This comes as a surprise to many because network marketing businesses go largely unseen. Finally, emphasize the important of education. When searching for a network marketing business to join, educational opportunities should weigh more importantly in your decision than commissions or products.
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