Why Value Creation is an Important Component in Entrepreneurship.
“Try not to become a man of success. Rather become a man of value.” ― Albert Einstein
There are two ways to become a successful businessman. The first is to keep an eye on the stock market to earn the highest profit in the shortest time. But the second approach is the desire and ability to “build something, something that lasts” (Steve Jobs).
In the long run, people who have the same mindset as the late great Steve Jobs make a mark on the economy. If you are focused on realizing dreams and value creation instead of getting a quick payout, you have what it takes to become a successful entrepreneur.
Another vital reason why value creation should be a vital aspect of entrepreneurship is because it gives your business the much needed edge against competitors. The marketing department and the management are the greatest victims of stifling competition as they have the responsibility of increasing productivity and revenue of the business.
And they can’t help it, simply because the rewards and promotions are mostly based on urgent metrics like increased sales or greater ROI. However, when value creation is your focus, you will have formed a unique brand image instead of wasting your time, money, and energy in following value that has been created by someone else.
You can take an example from your own life. You may have high ambitions, but the current needs block out all your inspiration. The current needs of a business are to keep their head above water instead of value creation, which is why the focus is on things like cost-cutting, “efficiency”, and competitive pricing.
But if you are able to develop a product that brings value to the consumer’s life, you will be able to charge a premium price. Mind you, along with the product itself, the marketing strategy also plays a major role in creating value by emotionally and psychologically connecting the product with the consumers.
Finally and most importantly, entrepreneurship based on value creation allows a business to thrive in a market where businesses open and shut down every day.
About the Author
Niki Singh is a Serial Entrepreneur and leading expert in Value Creation & Entrepreneurship in the UK, having experience in numerous business ventures across a range of industries. Holding Directorship status in a number of brands, he is currently Managing Director at My Little Web Designers.