Undeniably, entrepreneurs can learn a lot from Warren Buffett, the chairman and CEO of Berkshire Hathaway. Buffett, an American business magnate, investor, and philanthropist, is commonly considered the most successful investor of the 20th century.
He was ranked as the world’s wealthiest person in 2008 and is the third wealthiest person in the world as of last year. Regardless of your industry or occupation, here are five of his truisms that entrepreneurs should take note of.
1. “Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”
As a small business owner your vision may be to impact the world, but if you’re running a for-profit entity your accompanying goal is to earn a profit. One of the first considerations of any business should be the business model – how you will create, deliver, and capture value and the development of a revenue model – essentially how you will make money.
As a startup, it’s important to learn how to make money — but even more important to know how to keep it.
2. “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
At the onset of your company’s launch it’s important to define your corporate values, vision and mission. Utilize these declarations as a benchmark for the development of your company’s culture and how you will conduct business.
Build your brand with the future in mind and communicate your company’s values through interactions at every level – customer service, sales, marketing, public relations and partnerships.