You Create Value or You Perish
You Create Value or You Perish
“You and your brand are as good as the value you bring to the marketplace” ~ Bernard Kelvin Clive.
The business world today has grown beyond the obvious profit, as a business owner. Your business is no longer about you but about the value you create. The concept of value ties itself to your in-depth thought about what happens to your consumer when buying, after buying and also the future of your business.
According to Peter S. Cohan, the author of “Hungry Start-up Strategy” in his article titled “To Keep Your Start-up Alive, Keep Creating Value” as posted on the Entrepreneur.com divides value into 3 stages:
- Create Product that people will be willing to use: Are you going to be the one to use your product? When you personalise this question, then you awaken your consciousness to value creation. Since you are not going to be the one to use your products then you have to create products that people will be willing to consume. When you look at the Unilever brand, they have been able to create products that individuals will be willing to use, both young and old. Today, the success story of having everyone use Unilever products in their household is uncrushable. Thus, as a start-up are you creating a consumable product?
- Capture Value: You have focused on your consumers, you have made efforts in producing products that they can use but you are not really capturing value in this business. Capturing value is producing products that people will be willing to pay for. A product does not get consumable until it is purchased. So, are people willing to buy? Is your product too expensive for the quality it is serving? Or rather, are you allowing people to underpay your business? Most start-ups have created value but they have not captured value, either by making your products excessively expensive or by doing what we tag as “family business”, or in the bid to gain customers you allow people to underpay for services. When the service you offer becomes extremely expensive that consumers are not able to afford it then you lose customers. Similarly, when people underpay for your service, you are on the verge of perishing and might not be able to resurface again. So, it is fundamental that start-ups create measures that work well with their businesses, in as much as you want to create value and profit, we should not be excessive or overpower our consumers and also we should not be over nice to the extent that funds dry up and we are kept in limbo.
- Renew Value: For a business to be sustainable there should be value renewal. In renewing value as a business owner, you have to be innovative, and be an individual that is flexible to trends. Today, technology is a great boost for most business, many businesses have had to innovate and re-strategize with the growth of technology. The Punch newspaper, one of the most widely read newspaper in Nigeria in the last few months announced the E-Punch, which implies you can now read all their news publications online. This value renewal process, probably has to do with the publisher’s knowledge of the technological growth and an introspection into the future of newspaper publication. Innovative decisions see a business through hardship and future growth. Moreover, the repositioning of values can be somewhat in a way of a shift in the type of business, for instance, someone that sells “puff-puff” can decide to start baking cakes for sales, though it is a shift it is still in line with the style of business which is catering.
Every start-up with the aim and purpose of living long has to work with value and also consider these three measures to creating value.