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As Robert Kiyosaki explained, an “ah ha!” moment sparked off in my head. He was explaining a technical term called derivatives and he taught about how the financial sectors used it to make tons and tons of money.

In classic Dad style, he broke down the hard words into simple easier-to-understand concepts and I think it’s critical to understand the concept of it to really apply it in your home business. How can a term like that work? Okay, this is how Robert said it: “Think of derivatives as orange juice from an orange – orange juice is a derivative of an orange”.

Now, how does that apply to any home based business?

Okay, here’s the magic of it. As my friends asked me what derivatives was and how it could really be a profitable idea, I explained to them as how I understood it.

“If a person owned a chicken rice store, he would have a tangible, physical asset. However, if he wanted to make more money, the only way is for him to get more stores. How derivatives apply in this case is to extract the essence of it. In this case – the preparation of the chicken rice. So, he could create a manual about how to cook great chicken rice – and sell that instead of trying to open a new store!”

As I explained it, it clicked for me. Did it click for you?

So, instead of opening up a new store, you can extract the essence of it, derive it, package it into something else and sell that.

That’s how so many professionals and working people broke out into successful stories – they were able to take their tangible asset and turn it into a derivative for greater, more expandable profits!

Likewise, for any home business, instead of just thinking of the traditional way of getting more of the same – create a derivative and profit from it. Let it literally become what Warren Buffet calls “Weapons of Mass Destruction”!

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