
Motivate
for Success
Although Buffett has made a reputation as a
master of acquisition he is also seen as an enormous motivator. He understands
that a corporate culture is built on the success of managers at all levels. By
acknowledging their successes you can foster
a strong sense of loyalty and dedication that is key for your own
business’s profitability.
In a recent shareholder letter Buffet
wrote: "[We]
possess a cadre of truly skilled managers who have an unusual commitment to
their own operations and to Berkshire. At Berkshire, managers can focus on
running their businesses: They are not subjected to meetings at headquarters
nor financing worries nor Wall Street harassment. They simply get a letter from
me every two years and call me when they wish. Our trust is in people rather
than process. A 'hire well, manage little' code suits both them and me."
Take Smart Risks
You
can’t build the kind of financial empire that Buffet has built without
taking risk. However, that doesn’t mean entering into a contract or decision
without being informed. Don’t act on “gut checks” alone. Instead, get as much
information about every vendor, contractor or company you intend to partner up
in business with. Once you make that decision, stick to it and let it ride out.
Following a business plan towards success is about the long game.
Build a Strong and Trusted
Team
No
matter how big or small your business might be you’re not in this alone. Even
if you’re currently the sole operator that doesn’t mean you shouldn’t seek out
advice from trusted allies outside of your company. These loyal advisors could
be considered part of your management team. The key thing to take from Buffett
is that you’re only as strong as the people you surround yourself with. Who is on your team?
Embrace Your Mistake, Fix It and Move On
You’re going to make
mistakes in your business. There is no way to avoid that. What you can
avoid is dwelling in those mistakes at the expense of growth. Here’s how
Buffett explained this lesson in a shareholder’s letter:
"When I took
control of Berkshire in 1965, I didn't exploit this advantage," Buffett
wrote in his shareholder letter last year. "Berkshire was then only in
textiles, where it had in the previous decade lost significant money. The
dumbest thing I could have done was to pursue 'opportunities' to improve and
expand the existing textile operation -- so for years that's exactly what I
did. And then, in a final burst of brilliance, I went out and bought another
textile company. Aaaaaaargh! Eventually I came to my senses, heading first into
insurance and then into other industries."
What have you
learned from Warren Buffett?
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