How You Can Differentiate Profit And Value In 2018 Business
Being in business is great, but there is something unique when we come across real business that consider beyond making target, because one consider making profit and the other think more of values. One thinks about the future abundance and the other thinks about the now sustainable profit. Today, I want you to enter into a newer year from your previous business years with a change of mindset in business concepts. So here is How You can differentiate profit and value in 2018 Business.
Perhaps I should use a story learnt to illustrate my view-point of what value tell from profit. A very long time ago, a man went to Guru Nanak Sahib and asked, “What’s the value of life?”
Gurunanak ji gave him one stone and said, “Find out the value of this stone, but don’t sell it.” The man took the stone to an Orange Seller and asked him what its cost would be.
The Orange Seller saw the shiny stone and said, “You can take 12 oranges and give me the stone.” The man apologized and said that the guru has asked him not to sell it.
He went ahead and found a vegetable seller. “What could be the value of this stone?” He asked the vegetable seller. The seller saw the shiny stone and said, “Take one sack of potatoes and give me the stone.”
The man again apologized and said he can’t sell it. Further ahead, he went into a jewelry shop and asked the value of the stone. The jeweler saw the stone under a lens and said, “I’ll give you 50 Lakhs for this stone.” When the man shook his head, the jeweler said, “Alright, alright, take 2 crores, but give me the stone.”
The man explained that he can’t sell the stone. Further ahead, the man saw a precious stone’s shop and asked the seller the value of this stone. When the precious stone’s seller saw the big ruby, he lay down a red cloth and put the ruby on it. Then he walked in circles around the ruby and bent down and touched his head in front of the ruby. “From where did you bring this priceless ruby from?” he asked.
“Even if I sell the whole world and my life, I won’t be able to purchase this priceless stone.” Stunned and confused, the man returned to the guru and told him what had happened. “Now tell me what is the value of life, guru ji?”
Gurunanak said, “The answers you got from the Orange Seller, the Vegetable Seller, the Jeweler & the Precious Stone’s Seller explain the value of our life… Just as the story above relating it to your business, the Orange Seller, the Vegetable Seller, the Jeweler & the Precious Stone’s Seller all saw the value of what he couldn’t see from the precious stone; but would rather want to give him profit in exchange of his value. Sometime we have to understand every business comes with profit and values, but how you place priority on it, and how we position those coming for our services tell if they get the profit part or the values that comes along.
We live in an age of abundance, where it’s becoming more difficult to sustainable create value with a purely status driven, scarcity strategy in business. Luxury brands like Gucci, Prada and Ralph Lauren are experiencing [ tough times ] As they struggle to remain relevant and profitable. I guess perhaps they only earn profit rather than creating values. Luxury brands like Gucci, Prada and Ralph Lauren are experiencing tough times because their product are mostly needed by top class citizens who can afford such live style to spend much. I am not saying buying an expensive product doesn’t mean it only for profit, and don’t add values, but if your product only target a certain status, it only for the profit because it doesn’t help the mediums or lower earners. Such products are only in market for profit and not values, and would depreciate its worth.
All business success depends on the business’s value creation story aligning with the customer’s value story. We not only succeed by being important and useful to our customers for the values they get. We win by being worthy of their time, attention and financial outlay. Our brands become valuable not simply by creating profit in the moment, but by valuing and adapting to the changing narrative of the people we serve.
Considering Decision In business Profits Vs. Values
How would you differentiate
when we need to think about the weight of profit vs. value in what business/services we provide .
Think about your decisions. Do they tend to be driven by value or profit? Do you make decisions based on what gives the most value to people or what gives you the most money?
Do you constantly think of ways to increase the topline, squeeze costs, and/or “increase shareholder’s value,” even at the expense of innovation, of improving your products/services, and of what gives the most value to the end-user?
Do you pursue ideas that are redundant and add to the clutter, just because they are lucrative?
Do you measure your success by the money you earn, or by the value you give?
Do you charge $ for everything you do, even if there can be projects that don’t earn big bucks but can serve the greater good?
Do you buy stuff frivolously and then throw them away (or not use them) after that?
Or when you purchase things, do you think about the impact this purchase has on the environment and world?
Do you beat people down in your quest to earn more money?
Do you consider those who earn less or little money as “inferior,” because you assume that earning less money = giving less value?
Many of the decisions made in today’s world are based on profit, not value. Even when value is considered, it’s done so as a subset of profit. For example, if value is truly the driver, there wouldn’t be so many mass-produced candy brands or cake shops or fast food outlets today, much less heavy advertising for such food that targets kids. A little candy in our diet once in a while is fine. But when you have way more candy brands and options than healthy food options, when much more money is spent annually advertising unhealthy food and talking about how awesome it is than promoting healthy food, when food advertising today is more about getting people to “indulge” in nutritionally – empty food than eating what’s good for our body, then clearly something is wrong.
If value is truly the driver, you will not have public transport companies that allegedly cut down on maintenance budget to maximize profit, thereafter causing a slew of massive transport issues and disruptions while raking in record annual profit.
Sure that leads to more profits, but how does this help the common people? You should instead invest in the best equipment and maintenance budget to ensure top performance of the system, while trimming the fat from other places, including over-bloated, over-the-top management salaries, which IMO has little place in a service meant for the public good of all.
You’ll have to understand that every business requires some time and space to build their audience and it’s more important to work on macro-guidelines that encourage the thriving of businesses that are value-driven, rather than regularly look for ways to cream off business’s earnings. The latter usually leaves you with highly capitalistic businesses with huge budgets/funds that only perpetuate the low-consciousness materialistic/junk food loop. You’ll also understand that just because you can massively increase profit margins doesn’t mean you need to, because business owners, for all the work they put in, deserve to keep some of their hard-earned money, which they can then reinvest in growing their work and spreading value to others.
What determines a good Business sustainable Value
1. Treat ourselves and customers with respect
2. Be creative and resourceful
3. Great people over great resumes
4. Understand metrics, but make human decisions
5. Be open to change and maintain flexibility
6. Celebrate and enjoy the journey
Today, I want any business person reading this niche to understand that choosing a value-centered path isn’t always the easiest. It’s not always the most lucrative and it can be a very unappreciated path. This could be why most give up in business, It may lead people to take you for granted, especially in a world where people tend to assume that things should be free, so they don’t recognize the value of things that are highly valuable but which you choose to give freely or not maximize your profit on. It also doesn’t necessarily get you the most fame or attention because the popular culture adores the rich and the wealthy, even when their wealth isn’t earned by their true merit. But focusing on value is what helps improve humanity rather than just serving a few individuals’ needs, or should I say greed. And whether or not you are earning a lot of money, when you focus on value (while still acknowledging the role of profits in terms of sustainability and functionality), you change the world in a far greater manner than a profits-driven existence ever will.
In conclusion, a profits-centered life will only descend the human consciousness into lower consciousness levels of greed, envy, pride, and fear in business. A value-centered existence will lift the world into the higher levels of courage, love, joy, living the true change you crave for. I believe, your business will boom to a position of becoming globally if we can Can differentiate profit And value in 2018 Business