July 26, 2006


“I wish I had a caddy - someone to carry my bag and warn me about the hazards ahead.”
 
Will and Grace
 
 

How to Guide: What Warren Buffet Looks for in a Company

What's the number-one attribute Warren Buffet, arguably one of the most successful investors in the world, looks for in a company? "Sustainable competitive advantage," he told an interviewer. If one of the most successful businessmen of today puts this at the top of his list, you should too. Not only competitive advantage, as a term, widely overused, it is also widely misunderstood. You are not alone if you have ever wondered what a competitive advantage really is and what you do with it. So what is it exactly? And if Buffet examined your company, would he find what he's looking for? Let's find out. Read more...

 
By the Numbers: Small Steps Can Yield Big Results A big business myth is that a big project, task or event is required to dramatically improve results. Though this may be true in certain situations, for the most part, the big move, whether it is a project, a new product development or a large-scale deployment of technology, should be replaced by smaller incremental moves. (Data source: Chuck Martin, Darwin)


Case Study: To plan or not to plan?
 
Often we are asked, why do you need to have a strategic plan? Here is an example of two businesses – one who has a plan and one that does not. One small-business owner spent eight years planning his new business, a small cafe in a rural community. He designed the business, scouted the location and launched when the time was right. He ended up opening four other locations throughout the state over the next several years. He is very successful and is having the time of his life. He planned, followed the plan and got what he wanted.
 
On the other hand, another small-business owner was a highly respected landscaper. He really enjoyed his work. He thought it would be good to grow his business. When he started, he had just one team — himself and one assistant. When he finished growing, he had 12 teams — 24 employees, all doing landscaping. Unfortunately, he came to two conclusions: First, after paying all his employees, he wasn't making any more money than when he started. Second, he was spending all his time doing paperwork. What he loved most about his business was being outdoors. He undid everything he built and went back to being a landscaper with one assistant.
 
The bottom line: Be intentional about your life and your business. Write a plan, follow it and you won't just keep your business running, you'll be on the way to the life and business of your dreams. A strategic plan isn't for everyone, but it increases the chances that you'll get what you want instead of letting your business take you where it will.
 

Tell Us What You Think!
 
Finally, we’ve launched our blog and we want to know what you think. This week’s question on “Strategically Speaking” is: "What is the best business decision you have made in the past six months?" Share your thoughts with other readers and see what others have to say too!
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