Buffett: the completion of the transaction 4 skills outset we should discuss the question of money

"Buffett, the most famous is the use of very little information to engage in large-scale transactions, such as a few pages of the business plan submitted by a company in order to apply for a loan to the bank, as well as standard financial information." Searcy and Dev Reesewrites. They also added that business leaders can make use of a set of principles and effective strategies to help his company achieve explosive significant growth. The following is a small business leaders learn from Warren Buffett, the four decision-making skills, and help them to complete the transaction for their company:

1.To understand the financial position of the counterparty

If you want to understand a transaction will bring you what benefits it would first need to know what you're doing business with who accurately. This means that you need to know all the information about each other's financial condition, including each other how to make money and how to spend money. These data "to discuss the possibility of cooperation is crucial, Searcy and Dev Reese writes.

In addition to the counterparty's budgetary position, you also need to know more information. "The first thing you need to understand the 'why' into a transaction makes sense for your company's prospects." These two authors explained. "Once you know the biggest problem facing the future of your company, then you need to find the greatest solution to match it."

In such research, small business owners should also be held very careful attitude, you can not just rely on parroting the idea, not just because one set of values is widely accepted to agree, but should rely on funding studies to understand the true and accurate numbers, and these numbers and the industry as a whole, compared to what it means.

2.From the outset to discuss money issues

Just beginning to build relationships, to talk about money, which will make people feel discomfort, but you need an early start to discuss this issue.

In the "Buffett letter to shareholders" (The Essays of Warren Buffett), a book that he wrote the entrepreneur needs to talk clearly about money problems from the outset, because they will not want to waste their own or the other time to discuss a price unknown transactions, even if it is only a preliminary discussion ".

3.Using the interval to get the qualification and disqualification

When you discuss the question of money, price, cost structure, revenue and performance indicators you should use a range of metrics to understand the parties are willing to adapt to the lowest and the highest number of mediation. If you do not, then the final result may find yourself too far from the goal that (you and counterparty) relationship has suffered permanent damage, Searcy and Dev Reese wrote.

4.Only the time is ripe to negotiate only when

For a transaction, you should once only solve the problem about a point, and should not try to put the entire transaction scored meeting. Previous understanding of the other details, you should never attempt to carry out the negotiations.

You understand it before, do not try to negotiate, because it basically means you are trying to remove the previously necessary in the the common overall picture is built up from a tiny part, Searcy and Dev Reese wrote road.