In this post you’ll learn the importance of building value in a business and the best way to know if a business is truly valuable.
Businesses are one of those things that usually benefit everybody that is somehow connected to it. For the owners, the business could be a way of earning income that they wouldn’t be able to earn from a 9 to 5 job. It could also be a way of fulfilling their need to help other people, by solving the problems they don’t have the solutions for. For the costumer a business shows its benefits through the products/services they create. Those products are or at least should be solutions for the pains of the costumer.
Building value in a business
Everything mentioned above brings us to the idea that a business on the true sense of the word should add value for both owners and costumers. A business that only provides value(money) to the owners but not to the costumer is known as a scam. For a business to not only be successful but also remain successful it must add value to the lives of the costumers. It must somehow make their lives better. What better means here is subjective. The point is that the costumer should feel that its life is better. So it doesn’t matter if other people don’t see it, as long as the costumer sees the improvement for himself.
So the main goal of any entrepreneur should be to build the value philosophy into the DNA of the business. When the business/product truly adds value to the life of the costumer, its common for the costumer to advertise the product by free will. This costumer is not just a costumer, but a fan that not only is a fan but also a fan that will help you build your fan base.
In other words it will recommend your business/service to other people.
How to know if a business/product adds value?
For already existing businesses you can tell if it adds value to the life of the costumer or not by looking at its age. Businesses/products that don’t add any value usually die within the first few months to the first few years after the launching. If you are planning to release a new product/start a new business and you’re not sure if it adds value to the life of the costumer or not there are two things you can do:
- Release a minimum viable product version of the product(borrowed from the lean startup methodology) and measure the response of early adopters.
- Honestly answer the question: Does it add value to your life as a costumer? (not as the owner of the business/product)
. Do you/would use the product/service if/when you felt the pain of the costumer?
It is all about knowledge and experience;)
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