What do YOU bring to the table?

[RealOG]

It's a question a lot of folks ask themselves in all sorts of situations. In business, this question becomes key.

Sure, we all want to be valuable. But, how valuable? Not enough value and you wont be successful. Too much value and you can't leave without hurting the business.

In any entrepreneurial endeavour, you want to provide value enough to make the business successful without it becoming dependant on you. Add to this the ability to delegate and create a self-sustaining operation without training your future competition.

It's a tough balance, but understanding what value you bring to the table and the manner in which it you bring it is a key element to entrepreneurial success.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MJ DeMarco]

It's a tough balance, but understanding what value you bring to the table and the manner in which it you bring it is a key element to entrepreneurial success.

And a key to forging good partnerships as opposed to failed ones.

 

[hatterasguy]

Thats what killed me and still hurts me in RE deals.

For my first real deal I had to provide the deal and half the capital. My partner provided the experiance to get it done...which is far more valuable.

From what I have seen on the RE side, their are two vital tasks to making money at this.

1. You have to find good deals.
2. Dispose of them in a very profitable manner.

Thats all you have to do, all the rest falls into place.

OTOH those two things are big things to get right.

 

[fanocks2003]

Well, without people cooperating you have no value and everything in business builds on value.

If you recieve money I guess you have brought some value to the table. Otherwise there wouldn't be money changing hands.

Now, I have never understood the complexity of value exchange. If you make money you have contributed enough value to make some money on that deal. No need for super human powers, just common sense thinking which means "If he gets what he wants and I recieve what I want, then both are happy and we both agree on equal value exchange".

The more you make in dollars the higher value you have given, probably right? Very easy subject.

There is a dark side too: robbery. You get 100 dollars from a scared clerk. Is this a value exchange? Believe it or not, but yes I think so. Why? Simple:

1. The robber spares the clerks life (value given).
2. The clerk gives the robber the money (conter value given in the form of cash).

I know you will think this is a twisted way of thinking of the subject, but we still don't get away from the fact that equal value was given and recieved. A business transaction. Although a strange one.

If you recieve money and or something else you want you have successfully given a value of importance to the other party.

I don't know about you, but maybe I should have gone and studied law and become a lawyer. I am pretty certain I would have been the most well paid out there.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Salinger]

In order to create value without making your business dependent on you for ongoing success you need to develop systems. Even if you never plan to franchise your business, it helps to think of it that way. For any task that is repeated in your business, create a system so that anyone can do it.

There are several ways to do this. Some tasks can be automated through technology, others you need to document the steps taken - sort of like how to build a Subway sandwich, so that anyone can do it. First slice the bread, then add meat and cheese, then add vegetables and dressings, wrap it up like this... This allows you to delegate, and let others take over the repetitive tasks freeing you to do the creative work, and add more value. This also make the business easier to sell someday. A new owner can open up the manuals you've created and step right in to running the business. They could even hire entirely new staff to run it. All they have to do is follow the instructions.

A great book addressing this is The E Myth (E for entrepreneur). You might want to check it out.

 

[fanocks2003]

A couple flaws in this line or reasoning:

1) The clerk is giving away money that is not his/hers. So, while the clerk and the robber are getting value, the store owner is not, but is paying anyway.

2) If you believe that value exchange is always equal, does that mean that the clerk with $100 in his drawer has a life that is only worth $100? And that the clerk with $10,000 in her drawer has a life that is worth $10,000?

.

Let us see it like this:

1) Logicly correct, of course. But it is still an equal value exchange between the two parties, the clerk and the robber. And that is the whole argument I was getting at. If you look at it, it is really an equal value exhange for the store owner too. How expensive would it not be to recruit a new clerk and also pay for all the related costs around a dead clerk? I guess it would equal more than a measly $100 so in that sense the robber actually saved the owner a lot of money. A big value for $100. So in retrospect the robber really is the most under paid guy in the room that day.
2) No, of course not. But the clerk probably do, because the clerk gives the robber $100 to get away with his life intact. So I don't think so and the robber don't think so, but the clerk probably do. So, if the robber asked for more money, he would value the clerk more? Wouldn't he really be valuing himself more by having the guts to ask for more money in return for a life? After all, the robber is actually doing all the hard work here. The clerk only have to comply and the owner does not even have to do any legwork at all. In retrospect the robber should really be paid more for all his hard work here.

I don't encourage robbery or think it is right. This discussion is purely philosophical in regards to value exchange and the different takes on it. So all you people who think I encourage criminal behaviour, don't worry. I can't see the value of robbing people when you can make money legally.

 

[RealOG]

Everyone is using the term "value". What I think you mean is "perceived value".

Perceived value is what drives people to make value-based decisions. One person can perceive value differently than another. It is very personal, and within that it is very situational.

Think about medicine. If you are not sick, penicillin is of almost no value. But if you have a life threatening illness, then it is worth everything you have, including your life.

The value you bring to the table is dependant on who is sitting at the table and their particular values. My point initally was that, for FASTLANE purposes, you need to balance the value you bring. You want to provide just enough value that you "get er done" while avoiding two pitfalls:

1. Creating a JOB for yourself
2. Training your future competition

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[fanocks2003]

Everyone is using the term "value". What I think you mean is "perceived value".

Perceived value is what drives people to make value-based decisions. One person can perceive value differently than another. It is very personal, and within that it is very situational.

Think about medicine. If you are not sick, penicillin is of almost no value. But if you have a life threatening illness, then it is worth everything you have, including your life.

The value you bring to the table is dependant on who is sitting at the table and their particular values. My point initally was that, for FASTLANE purposes, you need to balance the value you bring. You want to provide just enough value that you "get er done" while avoiding two pitfalls:

1. Creating a JOB for yourself
2. Training your future competition

Agree. Everything is percieved value. There can be no reality more than a percieved reality.

Just take a sale of software for accounting purposes.

For some it is very expensive to pay $500 for such a software. Perception #1.
For some it is a bargain at $100,000. Perception #2.

Why this hugh difference of perception of value? Answer: presentation and use.

In example one the software is sold as a software only. Product focus.
In example two the software is sold as a cost saving solution. Cost reducing focus.

A company spending $200,000 annually on accounting software may feel it is a bargain to get the same quality accounting software for $100,000 (a one time fee) and in return save $200,000 annually for 5 years in a row afterwards (life time value of the software, with free updates during the same 5 years).

So value is always a percieved value.

 

[hatterasguy]

It goes back to the old saying, he who has the gold makes the rules...until the guy with the guns takes it.

I guess you could call an M14 "leverage".

 

[LightHouse]

I bring my good looks and charming wit. Do you think that will carry me?

Please circle YES/NO!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Salinger]

You want to provide just enough value that you "get er done" while avoiding two pitfalls:

1. Creating a JOB for yourself
2. Training your future competition

I agree, you ultimately do not want to work FOR your business, you want to work ON your business and let your business work for you. I think my earlier post addressed this. You do this by outsourcing, automating and developing systems that your employees can use to run the day-to-day operations of the business.

As for training future competition, you can deal with it by hiring individuals that do not have the means, skills or motivation to become your competition. Believe it or not, most people do not have any real desire to run their own business. They are happy to "feed from the trough" working at a job someone else provides. Competition will show up whether you provide the training or not.

 

[Cat Man Du]

A couple flaws in this line or reasoning:

1) The clerk is giving away money that is not his/hers. So, while the clerk and the robber are getting value, the store owner is not, but is paying anyway.

Congrats - Thats how the goverment works:smx6:

 

[terrycan]

I bring over 30 years experience developing prototype hardware.

Everyone is an expert at something.

Focus where you are strong.

Develop yourself where you are weak.

There is always a chance of failure if there is a chance of success.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.