In a prior article we talked about the two rules of business. The first and foremost rule being that a business must produce something of value for others. A corollary of the necessity of creating value is that it forces the organization to externalize its focus. Success is achieved by serving others.
In The Millionaire Fastlane, MJ DeMarco refers to this idea as “The Commandment of Need” which “states that businesses that solve needs win. Needs can be pain points, service gaps, unsolved problems, or emotional disconnects.” Alternately, as Derek Sivers puts it in Anything You Want, “Never forget that absolutely everything you do is for your customers. Make every decision—even decisions about whether to expand the business, raise money, or promote someone—according to what’s best for your customers. If you’re ever unsure what to prioritize, just ask your customers the open-ended question, ‘How can I best help you now?’ then focus on satisfying those requests.”
If you’re not getting clear input directly from your customers by seeking answers to a question like that offered by Sivers, consider a separate question posed by Bernadette Jiwa in Make Your Idea Matter, “How does what you do, make, serve or sell make life better for your clients and customers?” Can you detail how your product improves the lives of others?
Chris Sparks in an article for his Forcing Function blog suggests, “Your only responsibility is to drive results for your clients. That’s your product AND your marketing.” Sparks offers the following question: “Do your clients consistently have better outcomes after working with you?” If yes, then, according to Sparks, your marketing is complete. If no, then you need to get back to “honing your craft.” To drive results for clients is to create value for them. That’s your primary purpose as a business.
In Your Move, Ramit Sethi writes, Rule #1, People pay me for the value I create. In other words, if I create value, people will be more than happy to pay me for it. Rule #2. The more I make, the more value I can create. I can invest back into the business, by building systems, creating technology, and hiring new people. Rule #3. Money is a marker that I’m doing the right thing. We’re going to avoid fake proxies of success, like how many people like my Facebook page. Instead, we’ll focus on the ultimate sign that you’ve created something the world wants: Sales.” Value for them is what a customer seeks. When they see it, they’ll pay for it. If you’re successful in delivering it, you’ll be rewarded financially which allows you to sustain and grow your business.
There are many ways to create value for customers. One way is to solve a problem they have. Can you reduce a headache they’re encountering? Matthew Syed writes in Black Box Thinking, “This wasn’t a problem unique to me; it was a problem that everyone faced. As a product, it might really sell.” Does your product or service solve a problem for someone? If so, this is value. This is the first step to success in any business. Can you produce something which is of use or value for others?
Your personal experiences may help you figure out a problem to solve. What obstacle do you encounter when trying to do a task or activity that others also do? Can you find a more efficient approach? A way to determine where your best efforts and contributions may lie is to look to an area with which you struggle. What looks like a limitation may be a place where your personal experiences offer insight and fuel to help others. Your obstacle can become your way. Consider your problems as being personally placed in front of you to force your growth by overcoming. What limitations do you have? Are these frustrations likely felt by others? Have you been able to adapt and manage (even with or especially with the help of others)? Where you have made progress in the face of problems, you may have a unique vantage point to be of service to others. This may be a place to look to find your calling. What’s a pain point for you? What’s your problem? What’s in your way? These are all places to look to find where your experiences may be valuable to help others. Whatever inconveniences and impediments you’ve faced, chances are others have endured and will endure as well.
Moreover, this rule can be applied to us personally, not just to businesses. Adding value to customers isn’t just for business. It’s an approach we can use personally to add value to the world around us, whether it’s for our family or for others within the business for which we work. As the economist Thomas Sowell noted, “If you want more money, find a way to add more value.”
Our career capital is the value we add to our employer.
As professor Cal Newport notes in So Good They Can’t Ignore You, “The traits that define great work are rare and valuable. Supply and demand says that if you want these traits you need rare and valuable skills to offer in return. Think of these rare and valuable skills you can offer as your career capital. The craftsman mindset, with its relentless focus on becoming ‘so good they can’t ignore you,’ is a strategy well suited for acquiring career capital.” Your valuable skills can be traded for aspects of a job that you consider desirable. Your valuable skills can create job flexibility, job security, and more responsibility, not just compensation. Here’s to creating value for those you work with and your customers.
In our next newsletter we’ll highlight an example of levers of value from the restaurant industry and encourage you to come up with some in your own business or professional life.
