Buffet Wisdom
Warren Buffet was on TV last night.
And here’s what the billionaire had to say about becoming wealthy:
1, Become an entrepreneur. (No, he didn’t say to save 10% of every teeny-tiny paycheck and put it into stocks twice monthly times 45 years!)
2, The research is clear: being your own boss is where it’s at; however, starting a biz is the easy part. Especially online.
3, Nearly 80% of small businesses (and I’d bet even more internet businesses) go “belly up” inside of 18 months. Ouch!
4, To make sure you’re not one of ‘em… and to give yourself the best shot at making the MOST moola… keep the following in mind:
4a, A great business has high returns on capital, plus costs very little to grow.
4b, The “holy grail” is when you’ve got a competitive advantage and there’s obstacles that make it tough for new competitors to flood the market.
4c, You’ll be unstoppable if you’ve also got “pricing power.” Meaning, you can raise prices without losing all your clients.
4d, If what you’re selling is in demand, and you’re not easily replaced, and the govt. doesn’t regulate what you charge. You can scale faster and easier!
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Thanks. I particularly like Warren's 4a and 4b.
if you are interested, I wrote a post that address this in detail: Building Unfair Advantage for our Business, Part 2
That makes perfect sense, but with the limitations listed it sounds a bit like the old narco business, but then there came fentanyl: cheap, easy to make (so I'm told) and so powerful it makes the old addictive substances obsolete. There goes the price...
The holy grail is tough to find, hard to get, and very slippery.
I have a patented product that I manufacture - it is the price/performance leader for multiple technical niches. Unfortunately it is hard to sell unless people know about it, trust that it is real, and believe it is what they need. A few hundred customers around the world have passed those tests and bought my product, but that was over 15 years. If I can learn at WA what I need to educate customers and sell the product efficiently, in quantity, then I might be close to that holy grail.
At least for a few years until my patent runs out. Then the whole process starts all over again from 0... Kind of like a drug king pin who built a heroin empire before fentanyl came along.
This is great advice and obviously the source is no far cry from success. Some say what we care doing is just some sort of gimmick or low on the totem pole. I would like you to say that to all the 5, 6 and 7 figure earners who have learned everything from right here inside the walls of Wealthy Affiliate.
Great post
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Thanks for sharing, Tom.
You're welcome Rog.