Warren Buffett doesn’t invest in businesses he doesn’t understand. That’s good advice.
It’s also good advice for a small business when thinking about adding other services or getting involved in other businesses.
I learned the hard way.
There is a fine distinction. Maybe with some education you could come to understand a thing. But if it’s complex and you don’t see a clear value proposition, market, or clean way to operate, then don’t do it.
How can you bring clarity to your team and customers if you can’t get clear enough yourself to explain it?
If I don’t understand it, I should not get involved.
This holiday season I plan on enjoying family and friends from a position of gratitude for having them in my life. The last year I learned that your life can change quickly. Nothing is static. Change is the only constant. Enjoy this moment.
The irony is that in the modern world of complexity, people understand so little about how things work. Beyond business models, most people couldn’t tell you how roads are made, where their hamburger meat is grown, or how a lightbulb makes light.