Why Some Entrepreneurs Get Rich and Why Most Don’t
Life gets busy. Has Midas Touch been gathering dust on your bookshelf? Instead, pick up the key ideas now.
We’re scratching the surface here. If you don’t already have the book, order the book or get the audiobook for free on Amazon to learn the juicy details.
Robert Kiyosaki and Donald Trump’s Perspective
The first author of this book, Robert Kiyosaki, is an American Businessman who founded Rich Global LLC and the Rich Dad Company. The later focuses on private financial education through the mediums of books, videos, and speeches. He is also the author of over 26 books, including the best-seller Rich Dad Poor Dad (which sold over 41 million copies worldwide).
Needing little introduction, the second author is Donald Trump. Donald Trump is the 45th and current president of the US and has a long history as a businessman. Predominantly making his money through hotels, resorts, and golf courses, Trump has been a mainstay in the US business world for decades. Because of this, Trump was also the host of the American version of The Apprentice. The Apprentice is a TV show where entrepreneurs fight for investment, by Donald Trump, into their businesses.
This book is based upon the notion of a Midas Touch. The Midas Touch is the thing that sets certain entrepreneurs apart from others. Ultimately, these differences are what help the entrepreneur to become successful. Throughout the book, the authors frame Midas Touch through their wins, losses, and comebacks. These anecdotes help the reader to understand how they learned to be successful entrepreneurs. These range from Kiyosaki describing a failed business venture into velcro-based wallets to Trump juggling investing in land while also putting resources into Manhattan.
Introduction to the Idea of Midas Touch
The Midas Touch is described in this book as a metaphorical hand that holds the attributes critical to entrepreneurial success. The five fingers correspond to the five key factors.
In this book, the thumb stands for strength of character. Without strength of character, entrepreneurs cannot withstand the inevitable failures and disappointments that come with creating something out of nothing. Nothingness to something can feel dangerous, as often creation from nothingness is uncharted territory. However, unless we try and are willing to fail, then we will not succeed.
The Index Finger:
The index finger is allocated ‘focus.’ To the authors, focus looks like being able to follow one approach until successful completion. To focus, you must keep all your thoughts upon the work at hand and not let distractions prevent you from reaching your goals. If you have an idea, then put all of your efforts into that one idea. Do not spread yourself too thin.
The Middle Finger:
The longest finger is associated with the brand that you produce. Your brand reflects what you stand for. As an individual, you must ensure people understand your brand and that you have a willingness to spread the word about it to those who haven’t heard it. Your brand also includes you and the people who represent your company. Ensure that your workers understand that they are part of your brand, and they must act accordingly.
The Ring Finger:
Aptly, the ring finger is associated with relationships. The authors recommend finding a supportive partner and a variety of relationships that improve you. As an individual, you must be a good partner and friend so that you can build relationships that will help you succeed. As well as having supportive friends and family who can help you persevere when you fail, you want to have business-minded people who will point out where you are going wrong and be brutally honest with you. Not all ideas are good ideas, and you need business-minded relationships to kick out those bad ideas as they emerge.
The Little Finger:
Finally, the little finger is about the little things; it’s not about merely mastering the details. You will see that little things can become big things that can set you on a course of exponential success. Small positive decisions can have a lasting impact throughout your entrepreneurial career. For example, supporting a fellow business early on in your entrepreneurial career might lead to lasting partnerships in the future, if this fellow business ultimately becomes successful.
Strength of Character is Integral to Being a Successful Entrepreneur
Becoming an entrepreneur can be the best personal development program. As well as building character, due to the high chance of initial failure, it is also an opportunity to enter a personal business school that is best for you. Your entrepreneurial journey is a business school tailored to you.
Fear is the entrepreneur’s motivation to learn. If fear paralyzes you, then you will have to just keep your day job. Stress and fears must motivate entrepreneurs to become more creative, learn faster, and increase their knowledge about people and the business world.
Courage is not the absence of fear. Courage is the ability to act effectively. Despite fear, it takes courage to face your mistakes and admit them. It takes no courage to lie. Take responsibility for the mistakes that you make and own them. Use them as tools to improve, and don’t let them ruin your established relationships by blaming others. Always take the time to find the gem of wisdom in every mistake. After all, success comes from failure, not from memorizing the right answers.
As soon as you take responsibility for all that you touch, the power is in your hands.
The B-I Triangle
The B-I triangle claims that we should be investing in business systems, not into products. As you can see from the picture, your team, leadership, and mission are the foundation of the rest of your business. However, there are eight integrities of the business B-I triangle. Expand your focus and dive into your business to study and learn the language of the eight integrities of the business BI triangle. Then, gain experience before starting your own business with your newfound awareness of the eight integrities.
The authors recommend the following approach so that you can adequately understand the B-I triangle and implement it in your business:
- Get a job in the Quadrant. Use this as an opportunity to observe the B-I triangle in action
- Analyze why things go right in the business, as well as why things go wrong. Remember, you are not looking for a career through this job, you are just using this job as a training
- Do not work to earn work. The amount of free work a person does, in their own time, is what translates onto success
- After gaining this knowledge, you need to become a master delegator of all tasks inside the triangle
- Live your life with the understanding that having a broad knowledge, where you know a little bit about a lot, is a good thing
- Finally, focus on assets, not money
It Takes Courage to Stand Out
It takes guts to produce and maintain a brand. It is putting your passion and ideas out there for everybody to see.
It also takes guts to stand for what you believe in, even if it’s not popular. Not everybody will support what you are doing, but that does not matter. If some people disagree with you, then you are probably doing something out of the ordinary. This is good, as you can never make everyone happy when creating a brand.
You may as well make yourself happy, rather than others. You should be happy that your brand is unique. Go for what you want and develop an authentic brand. A true brand is more than a product.
Build Strong Working Relationships
A business is not just a logo; it’s a promise. It is a promise you put out there and the experience that you deliver through your business. Your reputation is more important than your business guard, especially your reputation with your life and those around you. Honest people don’t do business with dishonest people. Therefore, you need to make sure you are making deals with respectable partners.
Entrepreneurs must become people of better legal, ethical, and moral character. They must become smarter and working better with people. This is the entrepreneur’s most important job.
If you learn to become a good partner, you’ll meet some of the most exceptional people. People you might not have met in other walks of life.
As well as leading by example, you must also learn how to be a good follower. Only when you have mastered this can you communicate effectively with people who want to follow you. Being a follower also allows you to commit yourself to education and learn a lot in a short space of time. You want to commit your life to education. Remember, you don’t have to be an expert. You just have to know how to speak the language and eventually hire experts in those subject areas. Even if you have nothing but an idea, it is crucial to have good advisors and a small amount of knowledge. At a minimum, you should have three advisors: a CPA, an attorney, and a mentor. A mentor is someone who is a successful entrepreneur in the business.
People work harder when they’re held accountable, and their confidence level rises along with that. People respond, not only to challenge, but the confidence instilled in them with someone who believes in their abilities enough to expand their responsibilities. This is a sign of respect. Another sign of respect is being interested in people rather than trying to be interested.
Learn How to Pitch your Business
You have to learn to pitch your business very early in your entrepreneurial process. Practicing pitching feedback will always be more comfortable and cheaper when given to a friend from the marketplace. Use their expertise and feedback to hone your skills. Do not be offended by their feedback; use it as an opportunity to improve.
As well as pitching your idea, it is essential to know how to ask for money. It is easier to ask for money when you don’t need the money. You don’t ever want to sound desperate and needy, even if you are.
Finally, don’t over-promise what your business can offer. Being an entrepreneur can be overwhelming, but we must be true to our brand and our capabilities. You have to keep things in perspective throughout, applying your business to its capabilities at that time.
Migrating to the US is a Fantastic Entrepreneurial Opportunity
Trump and Kiyosaki finish the book by considering how the US is a fantastic country to become an entrepreneur. They describe how moving to the US from other countries, as a migrant, can help you make huge amounts of money. They explain that for many years workers came through Ellis Island looking for monetary chances. They had come from colossal hardship but were able to thrive through the correct approaches and the right mindset.
Final Summary and Review of Midas Touch
This non-fiction book delves deep into personal finance, investigating why becoming rich is a challenge, and what you can do to increase your chances of becoming rich. First published in 2011, this is the second of Trump and Kiyosaki’s books together, with the first, Why We Want You to be Rich, release in 2006. Building upon the first book, Midas Touch criticizes the shortage of financial literacy in the US education system and praises entrepreneurs who are willing to accept failure as a learning experience. The book is about what it takes to be a successful entrepreneur.
Rating and Criticism
We rate this book 4.2/5. If you’re new to the works of Robert Kiyosaki and Donald Trump, you may want to start out with a more fundamental book like Rich Dad Poor Dad or The Art of The Deal instead.
Related Book Summaries
The Intelligent Investor by Benjamin Graham
How to Get Rich by Naval Ravikant
Investing Against the Tide by Anthony Bolton