“We are in business to make money. The purpose of our business is to make money. We sell products/services that people want and in the process we make money. How can we sell more products/services so we can make more money?”
From the outside, business looks like it is all about making money. Of course it isn’t, but that doesn’t stop people getting into business to make money. Unless they move past this stage however the future doesn’t look bright. Believe me, I have been here and I have also watched others fumble here. Unless you develop some awareness of value creation, you won’t be around for long.
“Business is about creating value. We want to create more value because then we will make more money. How can we create more value so we end up with more money?”
This is a step up from stage 1, and the increased attention on creating value usually leads to an burst in growth. Creating value because you think it is going to make you more money however also has a ceiling. In stage 2, the ceiling is your desire to be profitable. Once you have met this desire – particularly if you start making a lot of money – the incentive to create more value disappears… as does the growth.
“Business is all about creating value and one of the things to be responsible for, is to be profitable so that we keep on creating value. How can we create more value, and how do we leverage the value we currently create?”
People realise that the purpose of a business is to create value, and one of the things to be responsible for, is to be profitable so that the business can keep creating value. However this doesn’t mean that the business doesn’t acquire a lot of money. In fact it is the opposite. This is the world of unprecedented growth.
No matter what your business experience, if you want to expand your capacity as a business person, you have to expand your ability to create value.
Business is not a money making game. It is time to become a master of value creation.
Value is everything.
Terence Sweeney advises business leaders on developing and implementing value based strategy and creating a value focused culture.
He also speaks and writes about the world of value creation.
To find out more about his services visit www.terencesweeney.com
Click here to order Terence’s new book on value creation