“Value Creation”. We hear these 2 words a lot in business, work and life. What does it really mean, and how can you create value to bring success to yourself and others? In this article, we’re going to share 3 powerful perspectives on value-creation, which you can use immediately to change your approach and results. Take a few minutes to ponder over each point, and use them in your business and relationships to see tangible results!
Changing your Perspective
Do you believe that you live in a dog-eat-dog world and the only way to survive is crush your competition before they crush you? Well, the first step is to change your own perspective. “The Go-Giver” presents a different philosophy–to achieve massive success by giving and adding value to others. This idea of value creation is encapsulated in the “5 Laws of Stratospherical Success”:
• The Law of Value says that your real worth is defined by how much more value you give than how much you get paid. If you can deliver unbelievable value, success will naturally follow.
• The Law of Compensation says that your income is decided by the number of people you serve and how well you serve them. The bigger your impact, the more money you’ll actually earn.
• The Law of Influence says that your influence is defined by the extent to which you focus on others’ interests first. When you give freely (without keeping score), people are attracted to you, like you, want you to succeed, and end up with an army of personal ambassadors.
• The Law of Authenticity says that the biggest and most valuable gift you can offer is yourself, i.e. your authenticity and sincerity is more effective than any manipulation or sales techniques you can learn.
• The Law of Receptivity. To give effectively, you must be open to receive, since they are 2 sides of the same coin.
Value-Innovation in Business
How do you translate the principles above into practical business strategies? That’s where “Blue Ocean Strategy” (BOS) and “The $100 Startup” can offer some tangible strategies and tools. One of the anchor concepts in BOS is that of “value innovation”, i.e. instead of trying to fight your competition head-on, find your own blue oceans by exploring ways to concurrently reduce cost and increase value. The book comes with numerous tools to help you brainstorm and analyze possible options for value creation (such as the Strategy Canvas, ERRC Grid, PMS Map, Buyer Utility Map, etc.).
If you lack the resources for major R&D efforts, “The $100 Startup” offers a simple framework to brainstorm and implement options to kick off your own micro-business. There are opportunities everywhere if you know where to look. Use this as an initial list for brainstorming:
• Inefficiencies: When you’re frustrated with the way something works, there are probably others who are also frustrated and looking for alternatives;
• New technology: The wide use of smart phones creates not only opportunities for apps and smart-phone gadgets, but also for paper products positioned as alternatives to an all-electronics world. Where there are new technologies, there are new opportunities;
• Changing space: Consider if and how a space (e.g. an old, unused building) can be re-purposed for a different use; and
• Spin-off or side-project: Consider offshoots from a successful business, e.g. a music teacher who also sells music textbooks.
• Human wants & needs. We add value when we give people more of what they want (e.g. love, money, recognition, free time), or take away what they don’t want (e.g. stress, uncertainty, hassle), or both.
Creating Value in All Aspects of Life
When we speak of win-win and abundance-mindset, it tends to sound vague. In “The Science of Getting Rich“, Wattles makes it tangible with a simple concept: The secret to value creation (such that everyone involved will benefit) is to give more to others in “use value” than what you take in “cash value”.
One great example is knowledge. If you pay $20 for a book, but the ideas in it help you to make $20,000 or $200,000, value has been created for you, the author and publishers alike. By applying this simple principle, you can always find ways to transact in a way that creates more value for everyone involved.
All 3 powerful concepts above can be applied to create value for yourself and others, growing the pie and bringing greater wealth for all! Do read our online blog summaries (via the links above) for more great ideas, check out the full summaries in our store, or upgrade to our monthly/annual subscriptions to get access to all our titles!