Warren Buffett of Berkshire Hathaway has just released his 2008 letter to shareholders.

For those who are just starting a business, it's worth learning what the "Oracle of Omaha" has to tell us about managing businesses.  Buffett is worth listening to, as, afterall, he is the richest man on the planet.

His letter, is, as usual, written in a friendly, neighbourly tone.  He reminds businesses that the watchword in these times is
 " In God we trust; all others pay cash."

If you're wondering what next in your plans on how to start your own business, do note Buffett's advice:

" In good years and bad, Charlie and I simply focus on four goals:

1. maintaining Bershire's Gibraltar-like financial position, which features huge amounts of excess liquidity, near term obligations that are modest, and dozens of sources of earnings and cash;

2. widening the "moats" around our operating buisnesses that give them durable competitive advantages;

3. acquiring and developing new and varied streams of earnings;

4. expanding and nurturing the cadre of outstanding operating managers who, over the years, have delivered Berkshire exceptional results."

What does this mean for those starting your own small business? 

It means create and manage liquidity; be certain you have a competitive advantage; be sure to create several streams of income; employ and retain the best possible staff.

This is sage advice for any business.

To read the letter from the richest man on earth, to the shareholders of Berkshire Hathaway, please click on  http://www.berkshirehathaway.com/letters/2008ltr.pdf

To Your  Every Success!

Gen Yan-Colebourn B.Com., ACA, Fellow TIA, J.P., DipBus(Franchising)
Author, Business Consultant and Chartered Accountant

www.start-up-a-business.com

P.S. Starting a small business does not need
to be difficult with the easy steps
in this business guide book
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