Cashflow Quadrant : The Difference Between Business Type S and Business Type B

Everyone has a different personality, so is everyone's way of earning money. Then how to know each of the characteristics in the cash flow quadrant? Let's look at some of the differences between characteristics in business type S and business type B.

One way that can be done to make money is to start your own business. Many people choose type B (business owner) or type S (casual worker). Each has its own advantages and disadvantages and none can be judged better than others. Through this article, My Finances will explain some of the differences between business type S and type B to deepen your understanding in cash flow quadrant.

System Differences

One significant difference between business types S and B is on the system. Individual B can leave their business for a year and may find his business has grown rapidly when he returns, but not for individual S. Individual S is the system itself, so if he leaves his business for a year, chances are that the business has been ruined.

For example, the individual S is a teacher. A teacher works as a system that is responsible for her abilities. He works hard each day to educate students, and if he is on leave or on vacation, then no one can replace him. Thus automatically his income also stalled if he took a long holiday. Unlike the case with individual B, for example, an owner of an insurance company. When he was on vacation, his company was still running as usual with the presence of staff and all employees so that when he was on vacation, his income kept flowing in.

It is difficult for an S to be a B since B must be able to control a system and be able to lead a number of people, where S is a person who usually does not entrust his work to others and tends to do it on his own. Individual S can be a B if he understands that perhaps delegating a job to someone else will not produce perfection as if done alone, but imagine how much time he can spend doing something far more important.

Different Ideas

Individuals S and B both want to start their own business, but different is the core idea. When you ask individuals S and B, "Can you make a better hamburger than McDonald's?" Then almost all will answer. But when you ask the next question, "Can you build a better system than McDonald's?" Then that's where the individual S and B. differences occur.

The core idea of ​​an S individual is generally to produce a better burger, while individual B wants a better business system. Individuals tend to be concerned with quality, he thinks he is capable of producing a much better burger than McDonald's without thinking that he will not be able to produce hundreds of burgers a day if he does it all on his own. While individual B is more concerned with how the system should be applied so that the business can run on its own without its presence and gain more success than McDonald's.

Moving Quadrant

In addition to the two differences in business type S and business B, it is actually possible to move from one quadrant to another. Generally, a person wants to start his career by being an E individual (employee) first to gain experience as a basis for opening his own business. He will then attempt to move to the S quadrant (casual worker) to release his work routine and expect greater success opportunities.

Many choose to move to the S quadrant first rather than to quadrant B (business owner) because many cases move to the B quadrant is stuck and the edges return to the quadrant S. After success in the S quadrant, then usually someone thinks to move to quadrant B and I (Investment).

But this move is not easy. In order to start a B or a quadrant, one must understand the broad picture of a business, from its raw material needs, its marketing system, its resource development system, its location and its decoration, product quality, to its distribution system. In fact, many good ideas are proposed, but few are able to build a business with great products and systems.

Choosing a Correct Quadrant

Based on some of the previously mentioned differences, surely you can see your personal trends and characteristics. Are you the type of individual who is more concerned with quality or more concerned about business systems? There is no harm in choosing one of the quadrants, provided you live it well. Later you can also switch quadrants if you already understand a business thoroughly.