Value Creation

Make something people want.....There's nothing more valuable than an unmet need that is just becoming fixable. If you find something you can fix for a lot of people, you have found a gold mine. -PAUL GRAHAM

Great businesses are built on creating value for others. Whether it's through solving a problem or making their lives easier in some way, the goal is always to improve other people's lives. Successful entrepreneurs have a knack for identifying these opportunities and turning them into reality. The best businesses in the world are those that have managed to create the most value for other people.

Creating the Value

Creating value comes in many forms, some identify gaps in a market that's already established, some create value by innovation, where something that people don't know they need becomes what they need.

Creating value for clients is important because it can increase your brand's reputation, profits and long-term success. Providing valuable goods and services can increase customers' confidence and trust in your company's offerings. Customers who feel they've made a good purchase are more likely to buy from you again and share their positive experience with others. Taking the time to learn what benefits your customers value can help you improve your product, increase sales and encourage customer loyalty.

How do you create the value?

If you already have the product you can create value by improving the Value Chain, for instance improving the buying process. If its easy for customers to get your product, be rest assured that they will purchase your product again. Consider establishing an online purchasing option so customers can browse your goods even if they're not available locally. Try to provide incentives for customers such as free shipping, fast delivery, responsive customer service and easy return policies.

You can also create a unique product .Try to communicate what makes your product or service different from your competitors'. Unique features or offerings can attract customers to your brand and make them choose you over a similar product or service. Consider doing market research to learn where there's an opportunity for you to provide something special.

Also don't forget to educate your customers;

We lose customers because they don't know how our product works - Nyasha Chidaushe

Perfect the Value

Nobody gets it right the first time, no matter how talented or skilled you are. You can perfect your Value by looking into the iteration cycle.

The?Iteration Cycle?is a process you can use to make anything better over time. There’s nothing wasteful about the inevitable changes and revisions that these artists made to their creations: every iteration brought the project one step closer to completion.

Iteration has six major steps, which I call the WIGWAM method:

1. Watch-what’s happening? What’s working, and what’s not?
2. Ideate-what could you improve? What are your options?
3. Guess-which of your ideas do you think will make the biggest impact?
4. Which?-decide which change to make.
5. Act-make the change.
6. Measure-what actually happened? Was the change positive or negative? Should you keep the change, or go back to how things were before this iteration?

Using the iteration cycle, you can identify what needs to change to make the offer more valuable.

Charge for the Value

Everyone needs to profit from the value they offer especially in Business. Businesses need to capture their value in the form of revenue. If you can offer a service that can bring/save your client $100 000 and you charge $10 000, you have captured 10% of the value. Make sure the value you capture does not strain the client. If you capture more value you may lose a potential client.

Deliver Value

As we all know, delivering value to customers is key to success in any business. But it's not enough to simply have a great product or service - you also need to deliver it in a way that resonates with your target audience.

That's why it's so important to understand the channels you will use to deliver that value. Different channels have different strengths and weaknesses, and it's up to you to choose the ones that best align with your goals and your customer's needs.

Books to read

• The Personal MBA - Josh Kaufman
• Rework?– Jason Fried & David Heinemeier Hansson
• The New Business Road Test?– John Mullins
• How to Make Millions with Your Ideas?– Dan Kennedy
• Indispensable – Joe Calloway
• The Goal: A Process of Ongoing Improvement – Eliyahu Goldratt
• Lean Thinking – James Womack & Daniel Jones