There are different vehicles for creating value as an entrepreneur, these include:
- NEWNESS: Something that’s not been created before (an invention), not previously seen or experienced e.g iPad, iPhone. Newness is different from innovation which is taking what is existing and innovated into a new product e.g iPhone6 to iPhone7. Newness can be as a result of innovation. In light of this info, how are you reinventing your business to meet up with the rapid change/trends in society? Write down 3 things you will now do differently to introduce freshness into your business.
- PERFORMANCE: You can sell performance to people. Selling performance is simply selling a product that helps your customers to do things in a better and more efficient way, like pharmaceutical products etc.
- CUSTOMIZATION: this value creation process is simply picking something from another market and adapting it to a local market. e.g picking a ready-made dress and fitting it and as high level as picking a car by adding new features to it. Is there a product your business can introduce into the local market that will excite your customers and impact your market value?
- GETTING THE JOB DONE: No frills, No side attraction. Helping people to achieve what they want to achieve. Your products and services are customers goals oriented.
- DESIGNS: Creating a template for people to function better with. selling ready-made products like DIY items. Creating systems and value e.g. Architects.
- BRAND AND STATUS: Value creation via brand and status appeals to the rich and affluent. These kind of models include things like joining exclusive clubs, airlines also use this model to promote premium goods.
- PRICE: Be very careful about selling price as a value which can lead to a price war. The main challenge is your competitor. Very little profit margin is made here but know that someone else might be willing to sell lower cost. Also, some companies use PRICE as a market entry strategy by taking on loss lead which means making a loss on products to gain market share. Beware that where a price war starts only the sellers loose.
- COST REDUCTION: E.g product being cheap but the cost of maintenance is high. This is common where machineries or software packages are involved or maintenance charges in real estate transactions
- RISK REDUCTION: There are also value offerings that help manage business risk such as insurance, etc.
- ACCESSIBILITY: The value you are selling is being able to get the product from where it is to sell to people in other places, e.g online stores, listing products.
- CONVENIENCE: The available product might be in a place where people don’t want to go. The value you can create there is CONVENIENCE. People are willing to pay for the product and its delivery. Do you have a business idea that can offer convenience? Why don’t you write out the value proposition your business offers and focus on your business’s unique selling points
These values can be combined in various ways and can sell at the same time. Everything you sell, a product or a service, will emanate from these values. You can reduce cost and sell more. A very good way to offer value. People will buy cost reduction as a value. As entrepreneurs, know your market, invest in market research and surveys. Success can be adapted.