July 30, 2019

Never Lose Money and One Other Sales Tip from Warren Buffett

Name a successful investor.

I bet that Warren Buffett was one of the first names to come into your head. There’s a good reason for that too because he’s one of the richest men on the planet.

He’s experienced success beyond what most will ever experience.

And he’s got some valuable lessons to teach any salesperson.

Lesson #1 - “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.”

This may seem like a snappy one-liner that doesn’t mean much.

But what Buffett’s really saying is that every investment he makes is a calculated risk. The idea of “never losing money” equates to doing everything you can to mitigate the risk while still having the courage to take it.

Risk is a naturally scary thing that we try to avoid. However, it’s essential to accept and take risks if you’re going to develop.

When you think of “never lose money”, think about what you can do to manage the risks that you’re preparing to take.

Lesson #2 - “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.”

While Buffet’s talking about the long haul here, reputation is something that all salespeople have to keep in mind.

We’ve all experienced having someone put the phone down almost as soon as we launch into a pitch.

That happens because you haven’t done enough to build your reputation with the client. So when you launch into the pitch, you’ve instantly ruined what little trust they had in you.

It’s not going to take 20 years for you to get a prospect to trust you. However, it’s so important to spend some time building a rapport before you go into your pitch.

While not a salesperson himself, Warren Buffett has a lot to teach you.