Closing the deal: Advice From Warren Buffett
By Nathan Strum
When you are taking advice, who are you going to take it from? Do you evaluate your sources at all? Many do not stop to think if they are taking advice from someone who has accomplished goals that they personally want to accomplish, or if the person they are taking advice from has no significant credentials. Then why are you listening to the person who can’t lead you towards your dream? With that said, let’s take advice from one of the top dogs in the business world, Warren Buffett.
These tips on how to close the deal are tips that I read from Vivian Giang’s “Warren Buffett’s Four Tips for Closing the Deal,” on American Express.
In Tom Searcy and Henry Devries book, “How To Close A Deal Like Warren Buffett,” they state, “Warren is famous for doing enormous deals with as little information as a few pages of business plans and the standard financials that a company would submit to a bank in order to qualify for a loan.”
According to Giang, Searcy and Devries, here are some of the top ways to follow in Buffett’s footsteps and close your company deals.
Know their financial situation
If you want to understand the benefits of the deal, know how the other person is financially standing. They suggest that it is important to know how that person makes their money and how they spend it. They state, “Start with the understanding of ‘why’ a deal makes sense to your prospect. Once you know your prospect’s biggest problems, you’ll need to find your biggest solution to match.”
Have “The Money Talk”
Although it may be awkward initially to speak to someone you just met about money, there is no need to waste each other’s time. Price cannot be ambiguous because it is not worth investing so much energy into something that eventually is going to waste yours or someone else time.
Know when to negotiate
Giang writes, “You should work out each particular point of a deal one at a time. You shouldn’t try to tackle the entire deal in one meeting. And you should never try to negotiate before understanding the rest of the details. Before you get to this point, don’t try to negotiate, because this basically means you’re trying to ‘reduce the little parts before the shared picture of the whole has been established,’” as written by Searcy and Devries.
When Warren Buffett talks, we should listen.