Business, as an Exchange of Value

Too often, people think about their business in terms of the products or services that the business sells, or the industry that the business operates in. However, a better way to think about business is in terms of the kind of value that it sells in exchange for money. Thinking about business from this value-centric viewpoint lends itself to business longevity; the ability for your business to sustain success over a long period of time. Nothing provides better clarity of purpose than knowing exactly how your business improves peoples lives, and why they buy what they buy from you. When you have this kind of clarity of purpose regarding your business, it fine-tunes you and sensitizes you to the needs, wants and desires of your customers much more than would otherwise be the case. When this transcends mind and permeates your actions, customers feel it. And when customers feel that, they come back for more. This fosters business longevity. Furthermore, when you're better able to meet the needs, wants and desires of your customers because of your increased sensitivity, you naturally will be better able to have higher quality relationships with them and they will be more likely to spend more money with your business more often. They also will be more likely to encourage others in their network to spend money with your business. This too, fosters business longevity. Additinally, when you have a value-centric view of business , you tend to be much more creative. Asking your team "how can we add more functional value to our customers?" leaves a lot more room for creative ideation than "how can we sell more tools?" Plus, the latter is inherent within the former. The kinds of products and services that are sold, or can be sold changes as trends change and times change. However, what tends to remain constant is human nature - and humans seek the same kinds of value today that they sought hundreds of years ago and still will seek the same kinds of value hundreds of years into the future. Therefore, again, having a value-centric view fosters business longevity. Primarily, there are four kinds of value that businesses sell. There is functional value, monetary value, social value, and psychological value. The chapters within this book are organized according to these four kinds of value, each chapter explaining that type of value and offering mild anecdotes accordingly.