3 Strategies from the Father of Business-Warren Buffett!
Happy Fathers Day to all the great men I have the privilege of working alongside and those Fathers and mentors impacting others’ lives. Thank you!
I was thinking about the one Father I have never personally met, who has taught me business and life lessons over the years, Warren Buffett. At 91, he continues to share his road map of success with so many of us.
I thought it would be fun to share several insights and strategies from the most recent Berkshire Hathaway annual meeting that you can apply to your business.
Consider this question, Should you Diversify your accounts?
What Is Diversification?
We learned not to put all money into one fund from an investment standpoint. Financial advisers use the phrase; Diversification will mitigate losses or risks by spreading your investments across multiple investments and different vehicles.
The idea behind this is that the positive gains generated by one investment effectively balance out any losses caused by another investment.
When looking at your business and accounts, would you say you are diversified? You likely have several large spending accounts that make up 60% -70% of your income and 40%-30% of other smaller accounts. We get comfort in knowing that we are diversified should any clients go away.
Warren Buffett, the Billionaire investor, feels differently. In his view, studying one or two industries in great depth, learning their ins and outs, and using that knowledge to profit from those industries is more lucrative than spreading a portfolio across a broad array of sectors so that gains from specific sectors offset losses from others.
What should we do? Dig deeper to gain insights into your best clients. We need to know the ins and outs of each account. Where are your opportunities with your clients? What problems could you solve for them, and the investment they need to make with your product or service long-term. Let go of the accounts that don’t have the budget and take time away from you, focusing on accounts with upside.
Knowledge Is Power
Buffett created a fortune by acquiring knowledge about finance and specific companies and industries. He took that knowledge and hand-picked his investments. The part of the quote about how important it is to know what you’re doing is something Buffett can speak to with authority.
An investor who studies trends and understands how different companies and industries react to various market trends profits much more by using that knowledge to their advantage rather than passively investing across a wide range of companies and sectors.
The same theory applies to our clients. Knowledge is Power! We have to study trends and understand the different clients we work with to be able to help them. Our clients are buying knowledge from us. They are investing in you and your company for profits for their company.
The person and company that helps them achieve this based on data, which is knowledge, market trends, and opportunities in the marketplace, and brings a solution to what they need will win the business. It’s our job to maintain that with each of our clients.
How to beat inflation
With inflation at its highest level in 40 years, shareholders wondered how to protect themselves from losing purchasing power as prices climb higher.
“The best thing you can do is be exceptionally good at something,” Buffett said. “Whatever abilities you have can’t be taken away from you.”
Buffett said the way you get paid or the amount might change with inflation, but if you’re the best at what you do, people will always be willing to exchange some of what they produce for what you deliver.
“The best investment – by far – is anything that develops yourself,” he said.
To be successful in business, keep your skills relevant and keep learning.
That’s why professional development is essential. To continue progressing in your sales career, consider developing and refining the following skills.
Ten Sales skills to help your business.
Effective Communication
Product Expertise
Problem Solving
Business Acumen
Negotiating
Prospecting
Collaboration
Relationship-Building
Following Up
Closing
Adaptability
Active Listening
In most cases, people buy from those they like and trust. What can you do to keep investing in yourself? What additional skills or knowledge can you gain to protect yourself? Protect your relationship with your current clients and gain new customers?
It starts by asking yourself whether you would buy your product or service. Suppose it’s a yes; congratulations. If you are unsure or it’s a no, let’s learn the skills to make it a Yes.
Change one habit
Warren Buffett has always shared his success tips for better investing and living a better life. He has done this by leading by example and one habit at a time.
Warren’s advice may be a good starting point to overcoming obstacles that may be keeping you from achieving your full potential. It’s a simple theory, Get rid of your bad habits.
This process isn’t as challenging as you imagine, so the first thing to do is stop thinking about all the changes you need to make. Instead, focusing on improving one thing at a time is the key to lasting change.
It’s those bad habits that keep you stuck and not moving forward. It starts with the people you surround yourself with every Day. My mom would always say to me you become whom you hang around. If you want to achieve things in life, surround yourself with those that have achieved them. Create an environment of growth and stretch yourself with those more intelligent, more innovative, and authentic who have your best interest.
Investing in you is the best return on investment!
Learn more about Simplifying Your sales meetings using 3-word topics at http://www.threewordmeetings.com.