Insights on Robert Kiyosaki’s Guide to Investing – Chapter 36

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Here we come now to the final chapter of Phase 3  that answers the question “How do you build a strong business?”. If you have read the previous chapters of the phase that starts with chapter 30, you are now very eager to know  the last building block that completes the B-I triangle.

Without further ado, I give you the last building block which is the “Product Management”. After introducing the cash flow, communication, system and legal managment, the author now gives emphasis on the product management. Product management now deals on how an entrepreneur would manage the product from its conceptualization, creation until its disposal or expiry.

According to the author, product management is the building block that does not require too much attention as compare to the earlier mentioned building blocks. I am really not convinced at first because for me, the product should be the primary concern for if you would not have the best product out there in the market, you will not be able to sell any and the business will fail, but I have been proven wrong.

It is the least concern because everyday, every hour, every minute, there is a new product or offer that becomes available to consumers or buyers. Competition will always be present and if you would compete by means of a product, you would end up losing valuable time in thinking of how your product would be more unique, better and presentable than to those of your competitors.

Whereas if you would just use that valuable time in going out and try to market your product, prepare a reliable financial statement to obtain a loan from a bank for a better cash flow, gather ideas from your team on how to improve operations or service or obtain various contracts with the help of your legal team, you would have a better business. Although a product is a necessary piece in building a business that follows the B-I triangle format, it is of the least concern because the market continuous to develop. The only time one must focus in product management was when new and innovative products or services are being offered by your competitors and you were left behind.

The best example of this one is Nokia, they were the pioneers and innovators of cellular phones, but because they focused solely on one aspect among the five building blocks of the B-I Triangle, they failed to go with the flow of the market that resulted to their downfall. It was really hard for them and it won’t be the last for sure. Any of the five building blocks of the B-I triangle shouldn’t be left out. Though some might be more important than the other aspects, equal attention must still be observed to strengthen the established business. Once the right formula has been figured out, money will follow.

NOTE: IF YOU MISSED THE EARLIER CHAPTERS HERE ARE THE LINKS:
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