American billionaire investor Warren Buffett has some personal advice to offer to new and existing business entrepreneurs, and 10 of his insights are listed out below:
- Reinvest your profits: It is always gratifying to make profits on your business the first time around, but don’t consume the fruits of your labour. Reinvest it to increase your seeds. You will be glad that the worth of your business will double or even triple in no time with reinvesting your profits.
- Be different from the park: Dare to be different. Be you. It can’t be you if you try to be someone else or emulate what others are doing. Blaze your own trail and have others follow you. Don’t mind if nobody had ever tried your experimental technique, you will soon know enough,
- Avoid thumb sucking: When Warrant Buffett says “thumb sucking,” he means dilly-dallying or indecision. He is swift at making up his mind concerning any investment prospects and he acts on decisions without much ado. Today, he is happier for this streak in himself.
- Spell out the deal before commencement of work: That is clear enough: your ability to bargain well will carry you through to completing the job. You lose steam and motivation to work when you realize you have shortchanged yourself into a bad bargain where you have to work your spine off for pennies an hour.
- Be wary of little expenses: You may not know this, but there are little and insignificant expenses that eat deeply into your profit and working capital. It is best to be frugal in dealing with small expenses if they can’t be done away with altogether.
- Do not borrow for business: It is best to not borrow for business because there is no assurance that the new business will repay the loan. And you become overcome with pressure of repayment to the extent that your health suffers. Avoid borrowing if possible, or limit it to the barest minimum if it must be done.
- Be persistent and courageous: You need strength and courage in the face of persistence to win in any business, and this is also what gives you leverage with bigger competitors in the arena of play. Learn to negotiate harder, and learn the dynamics of underselling the big shots to win business for yourself.
- Know when to quit: There is no saner wisdom than knowing when to quit. When the odds are not favouring you again, quit. When everything seems to be heading north and your trained intuition is telling you to quit, then you better do before you drive yourself into more debt and shame.
- Assess the risks: It is always best to look before you leap in any situation. When you don’t know what to decide upon, weigh the pros and cons of the matter and then move in on what is best for you. Imagining the worst or best-case scenarios may help you to see things a bit clearer.
- Have a realistic definition of success: Success to one person is not necessarily success to another. Many people measure success in terms of money and wealth, but it might be public acceptance and joy of fulfillment to another. Know what success really means to you as you continue to actualize your business goals and objectives.