The incomparable Warren Buffett shared his insight into the 5 Best Business Practices!
And according to Nick Turner, the Co-CEO of the search firm KBIC, “Even when the grass got greener, Buffett has stayed the course, because he knew why he made that decision in the first place.” He also adds that ”It’s too easy for a small-business owner to let go of [their vision or goal] when the road gets rough … whereas, had they stuck to it because they had a logical and well-thought out plan, in the end the process would have been very successful.”
So here’s the Top 5 Best
1. Be Motivational:
In addition to being a masterful businessman, Buffett is also an “tremendous motivater”, says Tom Shinick. “[We] possess a cadre of truly skilled managers who have an unusual commitment to their own operations and to Berkshire,” Buffett wrote in a 2011 annual shareholder letter.
2. Be Willing to take an Informed Risk:
A key component to Buffett’s staying power is the fact that he doesn’t make uninformed decisions, observers say. While not all of his acquisitions have, at first, been home runs, none were made on a whim or without the best knowledge and information available at the time, observers say. ”Diversification of a business operation through adding a new division and or product line needs to be clearly thought out and understood,” says Thomas Bonney, founder and managing director of CMF Associates, a consulting firm to private equity portfolio companies and other small to midsize businesses.
3. Create A Bottleneck:
Creating what Turner calls a “bottleneck” is typically viewed negatively, as in operational nightmare, but it can also be a positive thing for a business. “A bottleneck is a consistent filter or screen,” Turner says. “In Buffett’s example, he is the decision-maker. All things flow through him or Charlie Munger.”
4. Surround Yourself with a Trusted Team:
Buffett’s “core unit doesn’t change,” Turner says. “Few core people are let into his decision-making process. It can be construed as a negative. But I would disagree. I think that trust and experience is a key piece.”
5. Admit Mistakes & Fix Them:
Buffett may be one of the world’s leading entrepreneurs and business leaders, but he is never too shy, to let others learn from his mistakes. “When I took control of Berkshire in 1965, I didn’t exploit this advantage, Buffett wrote in another shareholder letter. “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.”
So how do you compare?
Are you implementing these 5 business lessons into your center and business?