For a better understanding, I take the trouble to draw the idea through a scheme that I present below:
As you can see it is very simple, there are only 8 steps:
The first step is to raise capital that will help you invest in your first business, which I described with the letter A. This money is usually met with our own effort (your work, savings, loans, credits).
Invest that money in a business A.
Keep good business A management, we do not want losses.
Recovers the money invested in business A (of profits).
The money obtained in step 4 is invested in another business, which I described with the letter B.
We maintain good management of B, without neglecting the business A.
We recover the money invested in B.
We repeat the procedure with a third C business and we directly go back to point 2. We do this as many times as we want, and in this way we expand our business.
This process aims to increase the speed with which the money returns to your hands after having made an investment, that is, you should have several businesses, as long as you can maintain good management of all.
As you can see this is applicable to any type of business whether small or large. Everything depends on you, the goals and dreams you want to materialize, how much you want to expand yourself and where you want to go.
I wish you a lot of success!!!
References:
Kiyosaki, R.T.,(2007).EL JUEGO DEL DINERO: Por qué los inversionistas lentos pierden ¡Y el dinero rápido gana!, México D.C., México: Editorial Aguilar.