Wed Aug 09 20233 min read
Value: The Real Currency of Entrepreneurship
I try to decode and write about Value.
Hello🙏, readers! This blog is going to discuss the concept of “Value”. How you as an entrepreneur (or any professional) should consider it as the real measure of your work instead of anything else.
Often entrepreneurs measure success by the amount of business they’re doing. But for me, it is just a side-effect of something more profound — Value.
When I say “Value,” I’m not talking about vague paper valuations or mystical calculations. I’m referring to the value proposition your product or service brings to the table. It’s about your role in the grand scheme of things — the market, the supply chain, the lives of your customers. In simple words, it’s about how darn useful your offering is.
Think about it this way: your product or service should be so packed with “value” that it’s on par (or even more) with the cash it’s exchanged for. We’re getting into some deep economics waters here, and if you’re curious, you can venture into the vast realm of the Theory of Value..)
But hey, let’s keep it real. I’m no economics guru, and I’m guessing you’re not looking for a lecture either! Instead, I’m talking from my eight years of experience running multiple startups. Trust me, I’ve seen the real magic happen when you focus on delivering value rather than just chasing numbers.
I would want to share a couple of concepts around the idea of Value, that has stayed in my head. They are also good signals for indicating that you’re generating Value or holding a key role in the Value chain:
“Shut Up and Take My Money” Moments
Have you seen the above meme before? Well, it’s more than just a meme; it’s a profound expression of value. Think about those products or services that are so darn valuable that when you’re pitching them, your potential customers are practically throwing money at you. It’s that moment when they can’t wait to get their hands on what you’re offering because they see its immense worth. I think this meme aptly represents the idea of Product-Market Fit as well.
The Double “Thank You” Moments
Something that I picked up from Amit Varma’s podcast — “The Seen and the Unseen”, originally stated by John Stossel. Imagine a transaction where both you and your customer walk away thanking each other. It’s not just about the product changing hands; it’s about mutual appreciation for the value exchanged. You’ve probably experienced this when you’ve finally found that perfect item you’ve been searching for, and the seller genuinely thanks you for choosing their store. “Win-win”, “poisitive-sum” are other ways of explaining the same phenomena.
So, dear entrepreneurs, let’s shift our focus from merely doing business to creating value that resonates. Remember, when your product or service is so incredibly valuable that people can’t help but thank you (and themselves) for it, that’s when you know you have made it as an entrepreneur.
Stay valuable, and stay awesome! 🚀