Of course, Warren Buffet needs no introduction. The experienced American investor is in third place on the list of richest people in the world, but is mainly known for his unorthodox approach and vision. For example, he is an outspoken opponent of high bonuses in business. He also attracted attention in 2011 by, as a very rich person, advocating increased taxes for the rich, by indicating that he even pays proportionately less tax than his secretary. This proposal was also referred to in the press as the 'Buffet rule'. What can we learn from this hyper-successful entrepreneur?
Learn and be your own scorecard
Companies often work with scorecards to set and monitor their goals. Buffet advises you to also use an 'internal scorecard' for your personal goals. This way you continue to push yourself to get the most out of your work and you always keep your personal goals clear in mind.
Don't work just for the money
Money as the only motivation to to undertake is not the correct starting point. You do business because you want to prove something, achieve something, or see a great opportunity. Entrepreneurship is by definition taking risks. Taking risk is countered by achieving an uncertain but possibly higher financial reward. However, the driving force behind great success is rarely purely financial in nature.
Hang out with people who are better than you
You can't do it alone! Especially as your company grows, you are increasingly dependent on the talent of others. Entrepreneurs are often jacks-of-all-trades and mirror themselves in their employees. When recruiting new senior people, they are usually looking for a copy of themselves. Recognizable? Logical, but not necessarily the best choice. You have to look for people who are different from yourself. Who are better in their specialty than you. So look for people who add a new dynamic to your company. So also know your own limitations, so that you can strengthen them with external talent.
Don't jeopardize your reputation
Building a reputation and a relationship of trust with customers often takes months if not years. And the building an authority much longer. However, you can ruin everything in 5 minutes. Breaking down is much faster than building up. So choose the long-term view, instead of making quick wins that can ruin your reputation.
Focus on your business
Buffet is known, especially in America, for his distinctive leadership style. He does not oblige his managers to long board meetings, extensive reports and many other time-consuming matters. He lets them focus completely on their business and ensures that they are unburdened in other areas. This requires enormous confidence in your people and in your own quality to gather the right people around you. However, if you are targeting people who are better than yourself, checking down to the last detail should not be necessary.
Give and take
Entrepreneurship means taking risks, as we have already mentioned in a previous tip. Entrepreneurship is investing in the long term, where the costs often outweigh the benefits. Both in terms of money and effort. Buffet believes that the more you invest in your customers, relationships and employees, the more you will get in return. Do you walk that extra meter for your customer, even if you get nothing in return? It will help you in the long run!
What is your favorite 'Buffet tip'? And how do you put this into practice within your organization? Let us know. And of course we would love to hear if you have any other tips to further expand the list.