Breaking Down The Real-Life Principles That Matter To Help You Join The 4% Of Businesses That Make The Leap To 7-Figures
MANAGEMENT • 4 MIN READ
How to Build Your Business Like Warren Buffett Invests
At $87.1 Billion, Warren Buffett is currently the third richest person on the planet.
Yet you wouldn’t know it…
He lives a frugal and humble lifestyle, doesn’t own a smartphone and spends 5-6 hours each day reading. He is, by all accounts, a simple man… yet he’s as wealthy and powerful as they come.
How does he do it?
He lives by certain principles. Like Rockefeller before him, these principles define his success.
Back in my trading days (my first business), I read all his books and followed his journey. I still learn from him today, but it was while at a recent mastermind I dove back into his world and wondered how he’s built his massive empire.
- What are we building at 2X?
- Where are we right now, and what do we need to do to scale to $10 million?
- What has worked up to now, but needs to change so we can scale up?
- And overall success in business…
I thought about powerful and successful business leaders like John D. Rockefeller and Warren Buffett, and the powerful lessons I’ve learned from them that will allow us to scale 2X toward $10 million.
You may not relate to all these, but you will to most if you
- Are looking to scale your business from 6 to 7 figures (and then, from 7 to 8 figures) …
- Want to master your time and productivity, so you can master life …
- Have a BIG vision to build a massive empire that lasts the test of time …
- Need to lay the foundations as soon as possible, so you can scale your business …
1. BE FRUGAL!
Warren is the third richest person on the planet, yet lives in the same house he bought for $31,500 in 1956. He can afford to live anywhere in the world, and own any house he desires… yet he lives in one that accounts for just 0.001% of his wealth!
There’s no value in spending it for the sake of spending it. He changes his price of breakfast (between $2.61 and $3.17) depending on the current market conditions.
He can afford anything, yet knows there’s an equation to wealth, and one of the main variables is Expenses. So as the markets fall, what he spends mirrors it.
He doesn’t spend large amounts just because he can… he lives a frugal, humble life because it’s one of purpose and intention.
2. Be Consistent!
If you constantly change direction and start something new, you won’t get the results that come from consistency and persistence.
Warren has focussed on what he is good at for a LONG time. He has stayed consistent with actions and strategies, and built momentum for the long term.
If you pivot each time you get bored — or follow each new idea or opportunity — you will NEVER become a master of your craft. But it’s the MASTERS who own their industries and build massive wealth.
- This takes time
- This takes massive commitment
3. Be Systematic!
At 2X, we like systems.
(Ok, we LOVE them.)
We’ve built our entire business model around helping YOU systemize your business so you can scale and grow quickly. With a system, you can build an empire. Without one, you have nothing but a hustle.
Where do you think I learned the value of this?
Warren Buffett has a VERY systematic way of choosing investments — a methodology, if you will — and he follows this system at all times. He removes emotion from the equation, and trusts in the system he’s built and perfected over decades.
If you follow any successful mogul like Buffett or Rockefeller, you will see this systematic approach to business and life shine through.
At 2X, we have a systematic way of building businesses (the 2X Formula), and it’s important you too embrace this so you can both scale your business and have a massive impact o your customers.
4. Stay In Your Zone Of Genius (At All Times).
- Shiny objects kill more entrepreneurs than just about anything else …
- Successful businesses crumble because their owner chases some new idea …
Learn to MASTER saying “no” so you can stay in your Zone of Genius at all times!
5. “Boring” Is Good.
The entrepreneurs who work on the next “big” thing and who always come up with innovative ideas may get the headlines, but most success comes down to simple and consistent work.
When everyone around him on Wall Street is making risky investments, Warren Buffett keeps it simple, slow and boring.
Exciting And Newsworthy? No
But Does This Make Him A LOT Of Money? YES!
As they say… slow and steady wins the race. If all you’re after is fame, by all means keep innovating.
But if you want long lasting success… keep it boring 😉
6. Play The Long Game
This follows on from living a simple, boring life…
You need to be in “this” for the long game. Most your success won’t happen today or tomorrow, and you shouldn’t concern yourself with it. It’s what happens over the long term that matters, so always remember that you’re in this until the end.
- Growth is NOT a straight line
- Steady growth proceeds a huge spike
- That huge spike can continue to shoot upward!
Compound interest is your best friend in wealth creation, business, personal growth… everything!
It adds up faster than you think, and it’s crazy how momentum builds on top of momentum.
Take Warren… he’s generated 99% of his $87.1 billion fortune since he turned 50!
All the time before then… just part of the journey that made him who he is today.
7. Build A Moat Around Your Business.
One of the biggest things Warren Buffett looks for in a business (before he invests anything in it), is how protected it is from outside forces.
- Market changes…
- New competition…
- The economy as a whole…
How big is the moat around your business?
This is great business advice, because it forces you to create a vision and build something for the long term. At 2X we call this the “Blue Ocean”… where you design your business model so you don’t have to worry about competition (and can instead dominate your niche and scale your business quickly!)
8. READ (A Lot!)
Just imagine how many people approach him each day? How many people would love to share an opportunity, pitch an idea or work with him in some way?
It’s hard to envision how “busy” he could be, and the pressure that sits on his shoulders…
Yet each day he sits down and … READS!
This inspires me, and shows how important it is to build systems so you can work “on” your business (not “in” it). If you’re hustling and grinding each day, you will never have the time to read.
But books are a powerful tool. Warren appreciates the value in knowledge, so he leverages the power of books and ensures they play a fundamental role in his day, every day.
9. Protect Your Time.
You cannot read for 5-6 hours each day unless you are VERY protective over your time.
You cannot read, period!! unless you take control over your time!
The more money you make and the bigger your business becomes, the more people will try and take your time: meetings, lunches, phone calls, pitches, ideas…
Warren Essentially Has ZERO Meetings.
Everyone wants to meet with him, but he doesn’t have much use for that. He keeps things on his terms, taking charge of his time management so other people can’t.
You may think “busy”, successful and industry-leading moguls like Buffett have no time, but the opposite is true. These people have all the time they want or need, all because they protect it at all costs.
10. Partner Up!
- So how do people like Buffett, Gates and Musk achieve all they do?
- Throughout history, how did Rockefeller, Jobs and Carnegie achieve so much?
On your own, you can only achieve so much. Having strategic partners helps you fill in the gaps, explore new opportunities, enter bigger markets and scale your business without having to do all the hard work yourself.
Now… partnerships are VERY tough to master, and lots of people get them wrong because they have the wrong business model (and don’t understand their vision)
Which is why the work we do at 2X is so valuable!
Done right, partnerships are a huge form of leverage… With the right approach, 1+1 = 3 🙂
11. Reserve Time To THINK…
If there’s one thing reading for 5-6 hours each day does, its make you THINK!
Warren Buffett Thinks A Lot.
I imagine some days all he does is think: about new ideas, new investments, new ways of doing something better…
He THINKS so he can see the 30k foot view of his empire, allowing him to be more strategic and intentional with his decision making than someone caught in the “hustle and grind”.
As a CEO and business owner, you need to reserve time to think (often).
It’s the difference between a Business Owner, and someone who’s owned by their business!
12. Be Patient.
Remember, this is a guy who’s generated 99% of his fortune since turning 50-years-old.
As I mentioned earlier… the compound effect of growth is a gamechanger. Success isn’t a straight line, and sometimes it feels like you aren’t progressing as you should.
Be patient. Trust in your vision.
Stay within your zone of genius!
It’s tough to be patient, don’t get me wrong.
I’m actively working on this myself, and it’s something I continue to struggle with.
But patience truly is a virtue.
13. Produce Cash Flow & Reinvest.
- Make More Money Than You Spend,
- and Then Invest the Difference WISELY!
That’s it! Do this and you’ll find success in any industry.
The best way to do this is to have a solid cash flow.
If you do, you’ll always have money to invest in what you need to invest in!
(not just today, but what will help you scale your buisness tomorrow)
This is what Warren Buffett does at Berkshire Hathaway!
He uses the ‘float’ from insurance companies to fund other business opportunities and investments, which in turn produces a lot more cash that allows him to repeat the cycle again-and-again.
14. Know Your Numbers
If there’s one thing a successful business owner needs to know… it’s their numbers!
Warren goes DEEP into the numbers — much more so than many investors.
The results of this are huge, because he spots opportunities nobody else can. Numbers reveal the truth, and rids you of any bias or emotions.
In Other Words You Base Your Decisions On What Will Work,
Not What You “Think” Will Work…
The same applies to you and your business!
If you go deep into the numbers, you’ll spot bottlenecks and opportunities alike way in advance.
This sets you up for massive success, and the ability to scale your business quickly and effectively. But what holds most people back is they have NO IDEA what numbers to dive deep into!
(after all, there are a lot you could look at, but only a few you SHOULD)
Don’t worry, we recently created a guide that looks at the top KPIs you need to follow, track and master (it’s the best guide we’ve ever produced).
Grab a copy of your own here, and make sure you know YOUR numbers inside-and-out!
Scale Your Business So Warren Buffett Would Invest In It
There are many other things I’ve learned from Warren Buffett (and other moguls who have built huge empires), but these are the 14 Lessons that are top of mine as we look to scale 2X to $10 million.
I have a vision to build an empire that Warren himself would want to invest in.
It Isn’t About Getting Investment Or Selling Your Business…
Maybe That’s Your Goal, Or Maybe It’s Not…
Doesn’t matter. Whatever you want to achieve with your business, you should strive to have the best impact you can. Following the path of moguls like Buffett and Rockefeller sets you apart from the majority, because most business owners chase the quick buck, the way one, and one of least resistance.
Go beyond them. Think BIG. Build for the long term and scale your business the “right” way…
This is our mission at 2X… to help ambitious business owners take charge of their business so they can work “on” it instead of getting caught inside it as a glorified employee.
We want to double the amount of small business owners who scale past 7 figures, so if you want to scale your business and learn how to do so quickly and effectively… arrange a free strategy call now >>
These 14 lessons are just the start, so if you want to dive deeper arrange your call now.
The Playbook To 7+ Figures
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