Warren Buffett is a successful business leader investor and philanthropist. He became very active in business in young age and he really loved it. He has some interesting and inspiring ideas for any young entrepreneur.
Few important Business tips from Warren Buffett include:
1. Remain calm- According to Warren Buffett market volatility is a true nature of the financial market and no one can escape it completely. However it is important to stay calm and invest for long term. Long-term returns of the stock market are usually better in spite of all the volatility.
2. Focus- It is important to keep focus in the field the company works in. It is easy to get distracted by purchasing side businesses that can be time as well as resource consuming. He maintains that we need to maintain our focus on base business.
3. Always try to keep costs low- Berkshire’s GEICO auto insurance is successful because of this principle. Every business should try to become a low-cost operator.
4. Employee incentives should be simple- It should be an easy and transparent process for employees to understand and achieve.
5. Remain out of trouble- Warren Buffett advised steering clear of possible future trouble.
6. In investing money 10 percent should be invested in short-term government bonds. Very low-cost S&P index fund should be used for investing rest of 90 percent.
7. Long term- It is important to think in terms of long-term investment. Businesses face good as well as bad years on regular basis. It is important to concentrate on work and not think about the business cycle. While making a purchase give due consideration to business instead of stock price.
8. Good Business relationships- In business, it is important to work with good pleasant people with the expectation of decent return on investment.
9. Reputation- According to him, reputation is very important for any business. Businesses should not indulge in anything that may tarnish its reputation. He says it is very difficult to earn a reputation and very easy to destroy it. So every business should strive to work honestly to achieve goals.
There are many great tips provided by Warren Buffett for achieving and maintaining a successful business. In a business reputation is very important. It is important to think about the long-term focus on base business and stay calm during market volatility.