Create Value. What does it mean?

[Kak]

Bro, the best way to look at it is this: There is no such thing as "making money". Money is simply evidence/proof of your value contribution. Whether you cleaned toilets in public restrooms in downtown Los Angeles or whether you own a company. Whether you are an employee or an entrepreneur you contributed VALUE, except the entrepreneur leverages capital, and therefore can contribute MORE value than an employee. plain and simple. forget this whole non-sense concept of money that most people are totally stuck with.

Value is defined as delivering something that someone else needs to another member in society. An entrepreneur simply molds resources such as human capital and other economic resources such as plastic, wood, metal, computers, software etc. into something that someone else NEEDS. That right there is value.

If this is what everyone was looking for, I am sorry for the oversimplified example. Great post buddy!

 

[Scuderia]

I would also say that marketing can create 'manipulated value' , e.g. look at products in the weight loss niche, most of the time its the 'marketing' which is creating the demand not the actual product itself, because its changing customers value perceptions. Could be something like adding a new benefit, or emphasizing a benefit more then others.

 

[healthstatus]

You can substitute the word "value" with "need" or "want", create a need, or create a want and people will pay to get it.

 

[Skys]

The word value has a challenge within it. Especially for hippies like me. I just think value is whenever somebody will think it will make their lifes better, easier.. etc. So when I sell headphones, I give value. Why? because some people love to listen to music.

Another form of value could be to write an ebook about something you know a lot about. Or a service that gives people an easier way to do things.

It's so broad, for me the only distinction is: Just don't do it for selfish reasons.
But, whatever company you look at that makes big bucks does it by giving value, providing a solution to a problem.

The big problem for me always is to get not hung up with all these terms. "Shit, I need to give value"... It sounds really heavy.

I also got stuck with the sentence "do what you love won't make you rich". All it says is that you won't become rich with some weird activity nobody cares about. If you love coding, i would not say it can't make you rich.

 

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[Skys]

The biggest companies didn't get there without ever being small. Atleast, with the little knowledge I have I don't know a company that right away where the biggest. So they have given lots of value and because of that are now very powerful in their industry. Look at Virgin, how much fun they brought in the lifes of people. Now, they are one of the biggest companies and they can use their money to build more companies. But, those companies will fail, I think, if they don't bring value to the people.

Again, I am not that knowledgeable. I also don't care to be. One thing I have learned last year is to stop looking at the big guys feeling shitty about my own progress.
Lets say you love playing music, you love to paint, you love public speaking and with that,.. you also are trying to build your company. If you look at Clapton, Picasso, Bill Clinton and Richard Branson to see how you are doing, you will always feel overwhelmed. But yes, MAC Donalds doesn't have the best burger, they bring value on a different level.

I think you are a bit like me.. Too much thinking. There is no map to build a succesful company. There are guidelines. One of those guidelines is that your company need to bring something to the people that will solve 'something'. Doesn't matter if that's noise canceling headphones for the people that travel and hate all the city sounds, or building a company that flys you from country A to Z.

Something I learned from Eckhart tolle: Words are just Words. So..even a word like 'company' got me stuck for some time.

 

[The-J]

The word value has a challenge within it. Especially for hippies like me. I just think value is whenever somebody will think it will make their lifes better, easier.. etc. So when I sell headphones, I give value. Why? because some people love to listen to music.

Another form of value could be to write an ebook about something you know a lot about. Or a service that gives people an easier way to do things.

It's so broad, for me the only distinction is: Just don't do it for selfish reasons.
But, whatever company you look at that makes big bucks does it by giving value, providing a solution to a problem.

The big problem for me always is to get not hung up with all these terms. "Shit, I need to give value"... It sounds really heavy.

I also got stuck with the sentence "do what you love won't make you rich". All it says is that you won't become rich with some weird activity nobody cares about. If you love coding, i would not say it can't make you rich.

Your whys dont matter. As long as the customer gets what he wants. You can make your whys matter to the customer, and that is a form of marketing.

 

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[socaldude]

Create a brand new product nobody has ever heard of and show them why they need it.

Pursuing an idea that had already been done might actually be a GOOD thing. Because the concept is proven. You just do it better. If the concept has not been proven, there is a lot of risk. And maybe there is a REASON why it has never been done. Maybe the pros know something you don't, idk?? :smug2:

 

[wade1mil]

Pursuing an idea that had already been done might actually be a GOOD thing. Because the concept is proven. You just do it better. If the concept has not been proven, there is a lot of risk. And maybe there is a REASON why it has never been done. Maybe the pros know something you don't, idk??

Right, I use to think you had to reinvent the wheel and that any competition was bad. Literally the opposite is true.

 

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[Yussef]

I'm not a professional marketer, and I didn't stay at a Holiday Inn Express last night, but I do have some opinions on this.

Value means different things to different people, and it can be subtle. Good marketing can add a lot to value. Consider a simplistic example - Advertisements for a watch:

Craigslist Ad 1: For sale - men's watch. Works. $50

Craigslist Ad 2: For sale - men's G-shock watch in excellent condition [photo of watch]. Black with gold trim, no scratches. Automatically sets its own time to the atomic clock signal - no need to ever set the time again! Low, low price of $50.​

The customer knows exactly what he's getting with ad 2. You've given him insight, which is value, and you'll profit by actually selling the thing instead of it sitting forever on your shelf.

There's also perceived value, which you can offer by making the customer comfortable with choosing your product over somebody else's. Again, good marketing can do this for you. Portray your product as the second coming, complete with over the top descriptions, glowing recommendations, happy happy words combined with a no BS approach and you can sway people into buying your product over someone else's.

At least that's the theory I'm going with. :smx9:

Nice. Simple, yet very insightful.

 

[Yussef]

Nice! It seems that would be an easy industry to get complacent and stop being innovative. Had you tested the concept with any customers beforehand to gauge the level of interest?

Another service you might offer is dog visits. I've heard good things about bringing dogs into rest homes to visit interested patients. Very therapeutic. I love dogs, so someone damn well better bring one around to visit me when I'm creaky and ancient!

LOL your crazy dude

 

[Amail]

LOL your crazy dude

Srsly! Therapy Dogs International

 

[Yussef]

I really like the dog. I also think some sort of mental health counseling would be helpful. Depression is a serious problem for older folks.
Have you thought about expanding beyond healthcare? What about other senior services (house calls for minor desktop computer teaching/repair so they can keep in touch with their kids, housecleaning services througidaloteah another vender, etc.)?

I am opened to new innovative ideas to separate us from our competitors, but just establishing a name for ourselves among the financially elite by itself is a full time job at the moment. Maybe when we start gaining momentum via word of mouth we can introduce new ideas to keep an edge in the market around that time.

 

[Yussef]

Exactly. It's redefining how money is acquired. To create a velocity of money flow into your direction, you have to HAVE what money is attracted to, and that is VALUE. Value is defined by NEED, DEMAND, or WANT.

Think of value/money relationship like a magnet: Value is the positive charge, money is the negative charge. Put the two charges (negative and positive) together and create attraction. The magnet moves and creates a bond.

Unfortunately, it the world of "money making" -- people approach money on a polarized basis; they attack money with a negative charge (I wanna make money! I wanna get rich!) and you know what happens when you inverse a magnet? You repel the two forces. Two identically charged magnets face to face will repel each other. This simple analogy (positive charge/negative charge) is why most people never make money. To attract money, you must reverse your polarity from negative (repel) to positive (attract).

(This shit is probably going into my next book if I have one... consider it a preview =))



Bingo.



True. This is why anyone who begrudges "rich people" they are actually begrudging value creators and job creators. Class warfare is nothing but an attack on the very people who create value in our world. I'd don't mind a billionaire moving into my town if he provides 1,000 great jobs. I love rich people because they advance our society via a value exchange. You don't get jobs from poor people.



This is why I'm not big on AM as a primary revenue driver, but a complement. For example, the affiliate ads at this forum are complementary- they aren't my bread-n-butter. It's the salt on the steak.



Au contraire.

If you buy a house in Phoenix, you bought it because you felt the market UNDERVALUED it. YOU saw value. When you buy a stock, you feel it is UNDERVALUED via its stock price versus its management and earnings potential. You are speculating on your ability to be a better determinant of value, and your ability to forecast value into the future.

When I buy stock options, I am making a value bet. I bet that the price will be valued higher or lower in the future.

If I sell naked RIMM calls, I'm saying "These call options are overpriced and worth selling: this company is valued too high - the price will be lower in the future"

Every action, or non-action is a value assessment.

When you purchase an undervalued house, fix it up, and rent it for $1000/mo, you are "creating" value. Your business is also high in the business of "assessing" value.



It will make you rich if you translate it into value that others can consume.



Any time you hear someone saying "money" -- replace the word with "value" -- that helps.

Similarly, anytime I hear a politician say "we must tax the rich" -- I replace "the rich" with "the value creators".



Sometimes value can be reframed just by presentation. This is the art of assessing value. (Like in finding undervalued stocks, real estate, etc.)

Buy something at Craiglist with one blurry picture. Take it home, clean it up, paint it, do whatever; take 10 High-Def photos and relist for more. You just reframed value.

Wow. That pretty much summed it all up. Thank you.

 

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[Kak]

MJ I love and respect what you have created and your mind is brilliant when it comes to wealth creation..but I think I know where you were kind of going with this comment and I love rich people too (who act like they have good sense), but that does not necessarily equate to me loathing people who have less.


I believe we must be very careful as we acquire financial intellect that we do not become socially autistic. I know you didn't say this but let me clarify that all people that are wealthy are not good and all people that are poor are not bad. Nor can they all be separated into groups of job producers and job destroyers.


I really do not believe there is a class war in this country regardless of what the political spin suggest. I confess that I have my days when my employees make me feel like I would vote to make complacency a capital offense if someone caught me at that moment. But bro there have to be checks and balances so that we all can continue to have the opportunity to get this money.


I am all about free enterprise but have seen the affects first hand of what the wealthy can do to an industry they want 100% control over and have the money to influence the outcomes they want. I witnessed corporate giants zero in on mental health services in my state and convince the governor and health and human service secretary to change regulations that would basically force smaller agencies to close their doors by regulating new expenditures 3 times what they had been incurring. After these businesses closed their doors the consumers left behind had no options available but the big guys. But things did not work out as planned unfortunately. Many mental health consumers opted not to receive services from these companies which left many emergency rooms overwhelmed with manic patients. The problem has not been fixed yet and that was almost 2 years ago.


Now did the rich create jobs in this case? Yes they did. They hired many of the spill off from the smaller agencies that had to close..even did it for much less than it cost before because demand for mental health positions shot up but the supply fell drastically but in the end the people that needed the services lost out because they were robbed of their right to choose.


So yes in a sense your right you don't get jobs from poor people, but on the flip side of that coin sometime you loose the one you have to overzealous rich people. We need a healthy balance. Just my 2 cents.

There is definately class warfare in this country. Tax the rich and see what they do. They are not stupid! They will leave!

Using examples from businesses that downsized is a moot point. Those jobs would have never been there in the first place if it was not from a somewhat successful enetepreneur.

 

[Yussef]

There is definately class warfare in this country. Tax the rich and see what they do. They are not stupid! They will leave!

Using examples from businesses that downsized is a moot point. Those jobs would have never been there in the first place if it was not from a somewhat successful enetepreneur.

Downsized? Is that what they call it now? It used to be called "closed".

 

[Kak]

Either or. The company wouldn't have existed without the "evil rich guy".

Crap business practices always catch up. Correct me if I am wrong Yussif, but you seem to be lurking around here with a demonized view of business.

I would argue about these companies changing the regulation that, if the regulation was not there in the first place. The market would have been better off and operating more efficiently. Obviously... Government is not a solution to business' problems. Look what it has done to itself.

Creating value is how honest businesspeople make fortunes. There is absolutely nothing wrong with creating value even if it means you have to let employees go every once in a while.

 

[Mike39]

So yes in a sense your right you don't get jobs from poor people, but on the flip side of that coin sometime you loose the one you have to overzealous rich people. We need a healthy balance. Just my 2 cents.

That is the price of capitalism, so if that doesn't float your boat, wait a couple more years or move to cuba (I still have 0 respect or like for you so I would prefer the later)

 

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[Mike39]

Crap business practices always catch up

Mitt Romney is one of 2 candidates for the US presidency, do you know what Romney did as a businessman to get to that position?

 

[Kak]

I am not sure what you are asking. But I guess he had to make some good money to help to support a campaign.

He has been labeled as some dishonest business a**hole through political mudslinging. He is simply a venture capitalist that had some projects that failed. Like most VC compaines, you fully expect a number of projects to fail, but, if you plan right, your successes cover your failures.

Not that I like him, but he is light years less socialist than Mr Obama. It is always about the lesser of 2 evils isn't it? I want out personally. I like GlobalWealth's train of thought.

 

[Mike39]

I think he is the lesser of the evils as well, I absolutely hate comrade obama, but I'm just saying he did some messed up stuff and he hasn't felt an repercussions from it

 

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[Kak]

I think he is the lesser of the evils as well, I absolutely hate comrade obama, but I'm just saying he did some messed up stuff and he hasn't felt an repercussions from it

What I meant by saying that. If a company does nothing but screw people over, how long will that company be in business? How long before someone drains them with a lawsuit? The answer is that shitty business is almost never sustainable... in a free market that is.

 

[Yussef]

Either or. The company wouldn't have existed without the "evil rich guy".

Crap business practices always catch up. Correct me if I am wrong Yussif, but you seem to be lurking around here with a demonized view of business.

I would argue about these companies changing the regulation that, if the regulation was not there in the first place. The market would have been better off and operating more efficiently. Obviously... Government is not a solution to business' problems. Look what it has done to itself.

Creating value is how honest businesspeople make fortunes. There is absolutely nothing wrong with creating value even if it means you have to let employees go every once in a while.

Uh, yes Kak I must correct you. For me to "demonize" business would be shooting myself in the foot . I am a business owner! I respect your perspective on regulation, although I do not agree with it, but I think regulation is necessary in some industries, even if only minimally so.

One of the most unique and beautiful things about our country is that one can be many things at once. For example you could be the founder and ceo of a multi-million dollar company yet have a social conscious and be environmentally responsible. Or..one could be the CEO of a non profit that does a lot of social good yet he/she can be a total a$$ (outside of work) that only cares about him/herself. Whatever makes your boat float.

My point is you become "the evil rich guy" only by choice and regardless of what my personal beliefs are I think there is good in everyone, and we all have something to contribute and to be learned. That's just me.

 

[Yussef]

I think he is the lesser of the evils as well, I absolutely hate comrade obama, but I'm just saying he did some messed up stuff and he hasn't felt an repercussions from it

The word "hate" is a term used only by the ignorant. So if you don't respect our democratic process here in America I will personally wire you enough money to get a passport and a one way ticket to Russia or China. ..I am only kidding with you. You have a right to your opinion.

 

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[Amail]

just a reminder of the no politics rule here. don't want one of the mods coming in here and smacking you all upside the head.

What he said. I'm here to discuss business (mostly), and the no politics or religion rule is a fantastic way to keep the discussion centered on business. If'n you don't mind, can we please just drop the political aspect.

 

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[kurtyordy]

tsk tsk tsk, I warned you guys.

 

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[CarrieW]

yeah I have to agree with the others about the politics crap. I LOVE the fact that it isnt allowed on this forum! Mj is a very smart man.

I just wanted to say that I really really enjoyed this thread and it made me think about creating value in a whole new way.

I am also going to reread the book and see what new things I see

thanks again Mj for all that you have done and continue to do!

 

[andviv]

Eventually all employees go lame and have to be replaced.

Never heard that one before, but the more I think about it, the more sense it makes...

 

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[CarrieW]

he gave me the same advice about taking things personally years ago! it is excellent advice!

do you trade currencies?

 

[gogiver8figs]

What I use to think value was: Create a brand new product nobody has ever heard of and show them why they need it.

What I now think value is: Offer something people want or need.

Amen!! So true. Thanks for articulating it in a way I knew intuitively but couldn't quite state.....