Underlying Principle of Business: Create Value

Filed in archive Management on August 28, 2006

The underlying principle of business has not changed in centuries. Just like law of gravity operates the same today as it did 2000 years ago - the same is true of business - for a business to prosper there must be an "exchange of value" between the business and its customers.

Value is created within a product or service - the way it "changes or improves" the life of your customer is what creates the "exchange of value".

I do not care how much you sell, if you do not provide a product or service that makes a positive impact on your customer - your business will not prosper.

Without an exchange of value, no wealth or abundance is created. Sure you have the customers money and they have your product - and are poorer as a result - unless you influence, improve, or help your customer solve an important problem there is no "exchange of value".

Look beyond the transaction - identify the difference your products or services have on the lives of your customers. Look for ways to add intangible or tangible value. It will transform your business and improve the lives of your customers.