“Adding value” is a phrase that gets used by many successful entrepreneurs throughout the world we live in. What does it mean exactly? Do you always focus on adding value to others first or what’s in it for you comes to mind all the time? What are your value beliefs in life and business? Are you like the masses who only prioritise themselves over others? We are constantly reminded in business we must take what is ours and not to let anyone get in the way of our dreams and aspirations. Sometimes this can be taken too literal and many people seem to think they must trample over everyone to get to where they want to be. Or sometimes people focus too heavily on money and rewards and not enough on creating value for the world. Always seeking to add value to the marketplace by servicing others with a solution can lead to success in all areas of our life. For example, if the value of your product and/or service exceeds the price you are charging, then there will be no reason as to why your return in the transaction will be a bad one.
The rich are always focusing on how they can bring more value to the marketplace they are targeting. They are constantly looking for any opportunity to bring more to the table than their competitors as this will always give them that edge over everyone else. Common methods for improving one’s value would be through education, experience and collaboration. These methods can help others succeed even if one’s expertise cannot fulfil the market’s requirements as they will always have an alternative solution to provide. We have all benefited from the value of others at times when we could offer nothing in return. Value may not be a direct exchange at the time of transaction, but what goes around, comes around. On the rise to success, you will inevitably benefit from the guidance and patience of those who are more accomplished, and wealthier, than you. Part of being successful in your field is learning the ability to provide as much value as possible, as it is the core to any high performing business.
The core principle of a business is to provide value for it’s customers and clients. It is for this very reason that many of the most successful businesses in the world were started with little or no money as they concentrated on bringing value to the marketplace first, then enjoyed the monetary awards afterwards. Companies such as Apple, Facebook and Google all started out this way where the passion and value came first then they turned into some of the richest businesses in the world. Apple Computers transformed the entire world of computers by making them easy to use for normal everyday people. One of the claims of many Apple iPhone users is that they have never read the instruction manuals. The applications are so simple to set up and use that they literally explain themselves. Convenience and simplicity became a huge source of added value for Apple, and for many other companies that have followed the same process.
Adding value to property to increase it’s overall worth is a common method in manufacturing equity. This could be in the form of a new kitchen and bathroom, landscaping, painting, extension and the list goes on. All of these improvements are done to provide the end consumer – usually a buyer or tenant, with some sort of value. It provides them with a solution to a problem, which in return will incur a fee for the convenience of the end consumer not having to carry out the work themselves. The more extensive the work on the property is, the more equity is created and/or more rental return can be charged for the investment. A simple cosmetic renovation can do wonders to the value of an established property, while homes purchased on large blocks of land represent the opportunity to eventually develop through subdivisions and construction.
Investing in the Australian property market can be very lucrative for people looking to create a business from real estate. Understanding where to add value is key to ensure the asset always stays in demand and optimal profits are produced. Knowing what appeals to the end consumer is very important in order to conduct the correct work to add value to their needs and wants. This will ensure that the market will continue to pay a premium for this value added to their asset, whether it is the asking rental or selling price. On the other side of the coin, people who purchase brand new properties – usually off the plan tend to restrict themselves from adding value to the property to help increase profits. Any options to add value to these types of properties will have to be conducted in the very far future. Most of the time these brand new purchases are bought at a discount through bulk buying pre-sales and are realising a profit due to the increase in capital growth of the area. Therefore, purchasing a property that has potential for you to add value, through renovations and subdivisions , can help fast track you to a successful road to property investing and entrepreneurship.
In summary, just like the title states “always add value”, applies to all things in general. If you always strive to add value to others in your life and business then you will never have to lower your price, therefore always charging a premium for your investment return. Believing in quality and service will enable you to keep your returns high which will leave more money in your pocket and optimise your profits. Instead of having the common mindset of “take take take”, continuously thinking of ways to create value in todays economic environment will help produce the results you are looking for. If you chase money, you will keep chasing your tail. Money eventually follows, it does not lead.