Warren Buffett’s Advice to Budding Freelancers and Entrepreneurs: "
In 2008 Warren Buffett was ranked the richest person in the world. He made his fortune from investing in the stock market and buying out companies. I recently read a biography about Buffett and it inspired me to learn more of this peculiar billionaire. I came to learn that Buffett was an amazing person and despite accumulating billions, he was still very much down to earth.
It may sound totally amazing, but I live in a house the same size as Buffett and drive a car very similar to his car. No, I do not have a Rolls Royce and I don’t live in a palace…neither does Buffett. Becoming the richest person in the world did not make him sell the house he had bought for $31,000 in the 60’s and once he was the richest person in the world he bought a car which had been repaired from accident damage because “It was cheaper”.
Being a freelancer I began to think about what I had read about Buffett. How can we apply his business ability and technique to our career in freelancing? Warren Buffett may be offended that I have assumed what he would say, but I hardly think he will ever come across this article not least because he doesn’t even have a computer in his office. I therefore give you, what I think Warren Buffett would say to freelancers.
1. Well Done
Warren Buffett is well known for flattering people and he would probably flatter you and point out the positive aspects of your career. This is an excellent technique which we should all learn from. By flattering your clients and pointing out positive aspects of their business you could secure their custom for life.
There are several ways of flattering. You could mention the positive aspects of your clients business on your blog, or on a forum. You could even just say it to them without a “kissing-ass” attitude. For example you could say “Working for a business as well known as yours will help build my rep, so I look forward to working with you”
2. Don’t Blow Your Money Away
Taiyab wrote about additions which you can make to your workspace in order to become a more efficient worker. An ergonomic chair, an extra monitor etc are great investments. Do not, however, start buying a chair or an extra monitor for silly prices expecting that by paying ridiculous prices you will get more comfort or work efficiency.
Warren Buffett is likely to ask you why you made some of the additions to your workspace or your life in fact. He is well known for having an eye for a 
cheap bargain and despite being the richest man in the world, he dines at his local affordable steakhouse, not some fancy pants restaurant where a glass of water costs what most people earn in a month.
Many freelancers are in the habit of overspending, assuming that by doing this they will give across a better message to clients and will somehow feel better about themselves. The richest man in the world bought an accident-repaired car because it was cheaper and freelancers will spend their hard earned money on a more expensive car! This leads smoothly to my next point.
3. Think Independently
Buffett is well known for being a totally independent thinker. He rides the subway as opposed to having a chauffeured Rolls Royce, but also when he looks at the market and makes predictions, he thinks independently here as well. When you begin a project, you should think independently and do what you research and instinct tell you is right.
I had a colleague once who would not start a project simply because another freelancer advised him there was no market for it. He had researched the market and made clear minded predictions, but on the basis of advice from a person who had not researched anything, he didn’t do it. Soon, someone else did his idea an made a lot of money.
4. Don’t Get Into Debt…EVER
Warren Buffett is very different from other rich snobs. He has never borrowed money…yes, not a loan or anything. He has never been in debt and everything that he has made is from his own money. If Buffett can do it, so can you.
There is no reason why you will need to get into masses of debt. If you believe in a project then work harder and make more money and use your own money to build up your fortune. Do not go to the bank or your family. If you lose that money you will hurt your credibility, end up living a worse life and possibly break up ties of kinship and friendships. With your own money, even if you lose it, you only have to deal with your own emotions.
5. Put Your Eggs Together
Buffett is a firm believer in his own research. He believes that if you have taken every aspect of an investment into account and believe it will rise through your independent thought, then you should go with your gut and put as much money as you want into it. Believe in yourself and believe in your idea. Get the courage and go for it!
6. Run Everything Together
Buffett uses the profits of one of his businesses to fund the other. This is exactly what Buffett does and this is what you should do. You may feel that you are funding one of your projects more than any other project but this doesn’t matter. A project which needed more to go in may give more return. Don’t tie up money and be stingy about investing it in your business (that’s not to say you don’t spend wisely, though).
7. Deal in What You Understand
This ties in with other points. I have known many young entrepreneurs who will get into a hype and blow their money away. When I was younger I thought I would give the stock market a shot and so without any understanding I invested into a company on the bases of what someone had told me. I did not understand, at the time, what I was doing and subsequently lost money.
If you understand web-related projects, then ensure your projects are based around your own area of expertise. Your experience and knowledge will accelerate your business to serious profit making.
8. Don’t Sell
If you have set up an income stream online, do not fall for the trap of selling out. The Google brothers wanted to sell out when they were just starting out, on the basis of an offer for a few thousand. Just imagine how different the world would have been if they had made that decision. Warren Buffett is no different. He has been in Coca Cola since the 80’s and never sold out.
If you create something you enjoy and put a lot of effort into then sit around and let it bear you its fruits.
9. Give it Away
Warren Buffett has pledged to give 85% of his fortune to the Gates foundation. All young entrepreneurs should have a vision to make the world a better place and this should mean donating your money to countries where they do not have the opp
ortunities which we do in the west.
By the time you read the above paragraph four people died in the world from hunger, three of them were children. Like my children, like your children. Imagine if we were born in a country where drought and poverty thrive. This is the logic that Warren Buffett uses, and that is why he does not lead the high life, because he plans to give it to the poor.
I believe that he would stress this point more than any other.
Would Warren Buffett say this or something else? Tell us what you think below.
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