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YOU GET WHAT YOU GIVE-Warren Buffet Business Principle # 10

Guest post by: Pia Lord

Article Overview: Of all the business principles that are promulgated over at Berkshire Hathaway, this one can have the greatest appeal and application for business entrepreneurs, large and small corporation contemplating a public offering as well as the start up company developing its business principles. Business Principle # 10 invokes the golden rule of business and the bottom line that giving business value can be done in varying relationships to getting business value for exchanges and sales, stock offerings, stock options and public offerings.

YOU GET WHAT YOU GIVE-Warren Buffet Business Principle # 10

WARREN BUFFETT BUSINESS PRINCIPLE # 10

“We will issue common stock only when we receive as much in business value as we give. This rule applies to all forms of issuance-not only mergers or public stock offerings, but stock -for -debt swaps, stock options and convertible securities as well. We will not sell small portions of your company-and that is what the issuance of shares amounts to- on a basis inconsistent with the value of the entire enterprise.” (Berkshire Hathaway Annual Report Owner Related Business Principle # 10)

GREAT BUSINESS RELATIONSHIPS

This statement is a good principle to follow with regard to issuing stock for your own business when you are at the level of becoming a publicly traded corporation. It seems that selling shares of a company to raise money is best done when you are truly giving and getting in the equal measure. It would be unjust to the current owners of the company to sell shares at a reduced price since that would be undervaluing the current owners shares. Yet at the same time overvaluing could be dangerous and risky since the true market value of the company could fall fast if it was sold to much at a premium.

This principle of giving and getting in the same measure can be applied to other areas of business. In fact, apart from giving in equal measure to what you are getting, most companies these days strive to give more than the customers are expecting. Thus surpassing the service or product rate of return that a customer is looking for will tend to develop great relationships in business and in life in general.

MORE THAN WHAT I EXPECTED

In the words of a fellow Carbon Copy Pro leader John Jackson, “Do today something for someone so wonderful in the knowing that they can never repay you for it” treat your fellow man with great respect and it will have benefits and rewards for you..

So you see these different levels of exchange in business and personal dealing will create various feelings and responses from people. When some gives you equal pay for equal work or when you get a great deal on a car purchase you feel like you have deserved what you received. You may feel happy about it.

When someone gives you more than you expected and thought you were going to get, you may feel really great about it. And when someone does something for you that you know is really beyond anything that you could ever repay them for, you feel really special. You feel like that person really cares about you and what happens to you since they went the extra mile for you.

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Article Tags: bottom line, business entrepreneurs, business principle, golden rule, relationships, start up company, stock offerings
Referred by: http://jaykubassek.com



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