Add More Value Than You Capture

At its essence, business is all about creating and capturing value. The more value you create and capture, the higher your revenue.

What is Value?

What do I mean by value? I call it any benefit your company produces for its customers. This includes products, services, convenience, improved image, increased productivity, and more.

When you add value, you create something of worth that didn't exist before. You make a difference in the world by providing a unique contribution. You change the game by making things better.

Capturing value is the process of getting something in return for the value you create. A business captures the value of its products and services by selling them to customers for profit.

Two Types of People — Givers and Takers

People who capture more value than they add create a gap between what they give and what they take away. Instead of making a difference, they make a profit at the expense of others.

On the other hand, people who add more value than they capture create a surplus between what they contribute and what they gain. Instead of taking things away, they make a difference by adding to the whole.

People who add more value than they capture also have a good chance of being wildly successful. They have the opportunity to lead more fulfilled lives. And they can help the world become a better place.

Anyone Can Add Value

Adding value doesn't have to be huge and complex. In business, you can add value by focusing on your clients and customers. When you provide valuable products and services, you can command higher prices. You also have happier customers and get more word-of-mouth business. Your company will grow because of it.

You can also add value by creating a culture of generosity and appreciation. Your employees will be happier about working for you, and they'll stick around longer. You'll build stronger relationships with your suppliers, too.

In life, you can add value by helping others get what they want. You can help your family, friends, and co-workers accomplish their personal and professional goals. You can give generously of your time, knowledge, or other resources.

As a result, people will appreciate what you do and be more willing to invest in you. They'll often help you when you need their support—even though that's not why you initially helped them.

Simple Examples of Value Creation

Here are some everyday examples of how you can create value:

• Provide great customer service
• Create a fun, engaging environment for employees
• Act as an industry leader or trusted advisor
• Contribute time or money to a cause you believe in
• Share knowledge and skills with others so they can achieve their goals
• Help someone see a problem from a new perspective
• Be a positive, memorable brand in your community
• Share helpful information that is not common knowledge
• Offer a product or service that is unique or difficult to find
• Go above and beyond for customers, clients, or employees

A great way to prosper is to add more value than you capture. Your company will create a surplus of value when you offer helpful products and services, develop a culture of generosity, and help others get what they want.

The more value you add, the more you can take away. The surplus of value will pay off for many years to come. On top of that, adding value is its own reward. When you improve the world, everyone wins.

?? How will you focus on adding more value this week?