It can feel refreshing to be in control of everything in your small business.
But it can also be stressful trying to juggle too many tasks at once.
Do you plan for your product first? What about the finances? Market research?
It can feel like you’re trapped in a constant cycle of busyness without any real progress.
Warren Buffett, one of the world’s most successful investors, has a simple yet powerful technique that could help break this cycle.
In this blog, we’re going to explore Buffett’s “2-List” strategy and how it can transform the way you prioritise and achieve your business goals.
Who is Warren Buffet?
You’ve probably heard the name Warren Buffett before.
Let’s take a quick look at who he is and why his advice is worth listening to.
Buffet is often called the “Oracle of Omaha” because of his incredible track record in picking winning investments.
He owns and runs Berkshire Hathaway, a company that owns big brands like Duracell and Dairy Queen.
Today, at the age of 94, Buffet ranks as the 10th richest person in the world worth about $144 billion dollars.
But what really sets Buffett apart isn’t just his wealth – it’s his approach to business and life.
His approach is all about sticking to what’s important and ignoring the rest.
He is known for his practical wisdom and ability to simplify complex ideas.
And that’s exactly what his “2-List” strategy is all about.
What is Warren Buffet’s 2-List Strategy?
So, what’s this 2-List strategy all about?
It’s from a personal anecdote from Warren Buffet’s life.
The story goes that Buffet was talking to his pilot of 10 years at that time, named Mike Flint.
Flint shared he felt he wasn’t making any progress in his career.
Buffet suggested a simple 3-step exercise he could do to refocus on his career goals.
This exercise has since been known as the 2-List Strategy.
Here’s how it went down:
1. Buffett asked Flint to write down his top 25 career goals.
2. Then, he told Flint to identify and put a circle around his top 5 goals out of the 25 listed.
3. Flint now had two lists: his top 5 goals (List A) and the remaining 20 goals (List B).
Here’s where it gets interesting.
Buffet asked Flint how he planned to tackle these goals.
Flint said he’d focus mainly on the top 5, but work on the other 20 occasionally when he had time.
And do you know what Buffet said in response?
He said,
“No. You’ve got it wrong, Mike. Everything you didn’t circle just became your ‘Avoid At All Cost’ list. No matter what, these things get no attention from you until you’ve succeeded with your top 5.”
Buffet says that even if those 20 other goals seem important, they are still distractions!
This is where many entrepreneurs get stuck.
They try to do everything, but by doing so, they spread themselves too thin.
Buffett’s strategy is about ruthless prioritisation.
Know which priorities to focus on and ignore everything else.
Why Does the 2-List Strategy Work?
Warren Buffett’s 2-List Strategy is primarily centred around the concepts of prioritisation and focus.
Here are 3 reasons why Buffet’s strategy works:
1. The Power of Saying NO
Entrepreneurs often get caught up in saying “yes” to too many things.
Whether it’s new opportunities, side projects, or even distractions disguised as “urgent tasks.”
But when everything is a priority, nothing is.
This can lead you to burnout fast.
In Buffet’s words:
“The difference between successful people and really successful people is that really successful people say no to almost everything.”
2. The Danger of Multitasking
Just like Mike Flint, it might sound tempting to work on our other goals during our spare time.
Some entrepreneurs even wear multitasking like a badge of honour, thinking it makes them more efficient.
However, studies show it can actually be a productivity killer.
The American Psychological Association found that multitasking can reduce our productivity by up to 40%!
That’s a big hit when you’re trying to get things done.
So if you find yourself with some spare time, take the opportunity to rest.
In fact, resting in the form of sleep can actually help you become more productive!
3. Writing Down Goals
There’s something magical about writing things down.
When you jot down your goals, it helps clarify what you want to achieve and keeps you accountable.
A study from the Dominican University of California dives into how writing goals can be productive!
They recruited 267 participants from various businesses and networking groups.
One group was asked to write down their goals, while another was asked to just think about their goals.
Results revealed that people who wrote down their goals were 42% more likely to achieve them compared to those who didn’t!
It seems like a small step, but writing your goals can make a big difference.
Apply the Power of Focus and Prioritisation to Your Business
The beauty of Buffet’s 2-List strategy is its simplicity.
You can do it anywhere!
It forces you to be honest about what really matters to your business right now.
For a quick recap on the 2-List strategy:
- Make a list of your top 25 goals you wish to achieve in the next few years
- Identify and encircle the 5 goals that matter most to you
- Start focusing on List A (items 1 to 5). Ignore List B (items 6 to 25)
By focusing on fewer goals, you’re more likely to actually achieve them, rather than making minimal progress on many fronts.
As a small business owner or solo entrepreneur, your most valuable resources are your time and energy.
The 2-List strategy helps you invest these resources wisely.
The power of focus can not only be applied to your business goals.
It can also be applied to your marketing!
Without focus, too many marketing strategies can cost you not just time, but money too.
And chances are you’ve already tried a lot of marketing tactics but got very few customers in return.
How can you change that?
Well, this is why we created our free guide “The D.A.D Formula.”
You’ll learn a simple 3-step strategy that ensures you get a constant flow of customers week after week— or your next 50 customers even.
It’s based on real-life small business successes from 10 years’ worth of marketing experience so you can invest your time in a guide that truly works!
