Tags |
|
|
Links |
|
|
AtricleZine - Adding Business Value: How do you Add Value in your Business?
Businesses usually spend about 2 to 5% of their annual gross sales on advertisements. Some companies use the cash method yet others use the task method for determining their advertising budget. Cash method is when they use that 2 to 5% of gross sales for advertisements and task method is determined based on their past experiences.It is imperative that small businesses do not waste the small amount of money they can afford on advertisements by using ineffective marketing and
revenue?
avoid this shrinkage in value?
dormant and unused?
Poems and stories can provide powerful metaphors in training, particularly when you are trying to get a motivational point across. If you think about the things you remember from your past education, you will probably note that most of them have come from rhymes or stories of some kind. I mean how did you learn to say your A,B,C's? I bet you're even saying the rhyme in your head right now!I find that participants respond extremely well when you sum up a topic with a rhyme t
As I talk to them about how they currently add value to their customers' lives and to their company's assets, I find that few of them actually understand what value is. Memorably, Warren Buffett (CEO of Hathaway) said in 1999, "Price is what you pay when you buy an asset, value is what you receive for your money".
Revenue - Cost = Value added
Accountants say that value is the residue left when costs are subtracted from revenues. As a simple equation, this hides more meaning than it reveals.
In greater detail, successful business leaders recognise that after the client’s cash has moved into their bank account, and they have paid for the materials that they used, there is money left over and this added value represents a growth in their business assets.
Types of value - with examples
At a deeper level, I see there are four types of business activities that affect value:
1. Value Transfer is when I pay for your products or services - including access rights, knowledge, expertise or personal advice. In the transfer, we transfer equivalent values of goods and money so there is no overall growth.
2. Value Increase arises when I pay for something that is cost-less for you - possibly service brochures, product lists, serving suggestions, residual materials or by-products. In this transaction, you offer goods that have a low or nil cost to you and I pay money for them.
3. Value Creation occurs when I pay for your novel idea - such as packaging complementary products, putting current goods to more uses or identifying different consumption models. Here your ideas create a wholely new arrangement of products and services and I am willing to pay for the resultant intangible (productivity, beauty, entertainment, progress, fashion etc).
4. Trading is where we bargain so we both add value - perhaps through relationships, networking or referrals. The trader buys plentiful goods and takes them to where they are scarce and swaps them for goods that are plentiful there. Then the trader carries these goods to trade where they too are scarce. The value arises from the sequence of trades.
Further practical ideas
Applying these ideas to your business, ask yourself:
- Beyond your main products and services, what other goods might your customer buy that would improve their use of their purchases?
- Given that the by-products and waste from your production processes can often attract a
disposal cost, how could you package them or further process them so that people would pay for them?
- Where do you have static stock (and dead money) which you could liquidate and turn into
revenue?
- Which of your buildings and machines are partially used and how could you rent them out (or sell them off)?
- Which processes produce waste and how could you adjust your materials and processes to
avoid this shrinkage in value?
- Where could you train your staff and where can you invest in product design and production processes to create new opportunities in your market?
- What intellectual assets (such as designs, patents, staff suggestions) have you that are
dormant and unused?
Basically, we can find anything that has ‘graphic design’ (in term of composition on a surface) in our daily basis. For example, take a look at your shirt, you can see the composition on it (buttons, pocket(s), motifs, color(s)). Or try to find any other items, let say… your television, it consist of composition as well (the screen, the button(s), etc.). It also happens to any other items (clocks/watches, magazines, signage, any apparel, households, etc.)When you buy someth
In greater detail, successful business leaders recognise that after the client’s cash has moved into their bank account, and they have paid for the materials that they used, there is money left over and this added value represents a growth in their business assets.
Types of value - with examples
At a deeper level, I see there are four types of business activities that affect value:
1. Value Transfer is when I pay for your products or services - including access rights, knowledge, expertise or personal advice. In the transfer, we transfer equivalent values of goods and money so there is no overall growth.
2. Value Increase arises when I pay for something that is cost-less for you - possibly service brochures, product lists, serving suggestions, residual materials or by-products. In this transaction, you offer goods that have a low or nil cost to you and I pay money for them.
3. Value Creation occurs when I pay for your novel idea - such as packaging complementary products, putting current goods to more uses or identifying different consumption models. Here your ideas create a wholely new arrangement of products and services and I am willing to pay for the resultant intangible (productivity, beauty, entertainment, progress, fashion etc).
4. Trading is where we bargain so we both add value - perhaps through relationships, networking or referrals. The trader buys plentiful goods and takes them to where they are scarce and swaps them for goods that are plentiful there. Then the trader carries these goods to trade where they too are scarce. The value arises from the sequence of trades.
Further practical ideas
Applying these ideas to your business, ask yourself:
- Beyond your main products and services, what other goods might your customer buy that would improve their use of their purchases?
- Given that the by-products and waste from your production processes can often attract a
disposal cost, how could you package them or further process them so that people would pay for them?
- Where do you have static stock (and dead money) which you could liquidate and turn into
revenue?
- Which of your buildings and machines are partially used and how could you rent them out (or sell them off)?
- Which processes produce waste and how could you adjust your materials and processes to
avoid this shrinkage in value?
- Where could you train your staff and where can you invest in product design and production processes to create new opportunities in your market?
- What intellectual assets (such as designs, patents, staff suggestions) have you that are
dormant and unused?
More and more people are graduating from university with a degree in law & looking for legal jobs. As a consequence it’s worth thinking about what legal job you would like after you graduate and how well prepared you are. We’ve put together 10 top tips to get a graduate legal job.1. Gain some work experience – it can be really hard to get legal work experience, sometime legal firms have more applicants for work experience than they do for trainee positions. Don’t let the hi
3. Value Creation occurs when I pay for your novel idea - such as packaging complementary products, putting current goods to more uses or identifying different consumption models. Here your ideas create a wholely new arrangement of products and services and I am willing to pay for the resultant intangible (productivity, beauty, entertainment, progress, fashion etc).
4. Trading is where we bargain so we both add value - perhaps through relationships, networking or referrals. The trader buys plentiful goods and takes them to where they are scarce and swaps them for goods that are plentiful there. Then the trader carries these goods to trade where they too are scarce. The value arises from the sequence of trades.
Further practical ideas
Applying these ideas to your business, ask yourself:
- Beyond your main products and services, what other goods might your customer buy that would improve their use of their purchases?
- Given that the by-products and waste from your production processes can often attract a
disposal cost, how could you package them or further process them so that people would pay for them?
- Where do you have static stock (and dead money) which you could liquidate and turn into
revenue?
- Which of your buildings and machines are partially used and how could you rent them out (or sell them off)?
- Which processes produce waste and how could you adjust your materials and processes to
avoid this shrinkage in value?
- Where could you train your staff and where can you invest in product design and production processes to create new opportunities in your market?
- What intellectual assets (such as designs, patents, staff suggestions) have you that are
dormant and unused?
Service sure does come with a smile, but sometimes with a great deal of understanding.Recently, looking for a gift, I settled for a breakable item from a gift ware store in a shopping mall. On leaving the shop and making my way out of the mall I slipped at the top of the escalator and broke the bowl I purchased.Not that the gift was over-expensive, about $50, but it took me quite some time to make the selection and the thought of having to look around and find someth
Further practical ideas
Applying these ideas to your business, ask yourself:
- Beyond your main products and services, what other goods might your customer buy that would improve their use of their purchases?
- Given that the by-products and waste from your production processes can often attract a
disposal cost, how could you package them or further process them so that people would pay for them?
- Where do you have static stock (and dead money) which you could liquidate and turn into
revenue?
- Which of your buildings and machines are partially used and how could you rent them out (or sell them off)?
- Which processes produce waste and how could you adjust your materials and processes to
avoid this shrinkage in value?
- Where could you train your staff and where can you invest in product design and production processes to create new opportunities in your market?
- What intellectual assets (such as designs, patents, staff suggestions) have you that are
dormant and unused?
There was a time before the recession when you didn’t have to analyze precisely what parts of your leadership message worked. Whatever you were saying seemed to get the job done; a PPT presentation full of facts, statistics and quotes. Perhaps you have been called to action with a company memo or a training mandate. Change initiatives were launched from above yet when the dust settled after the wagon train pulled out, the flame ebbed until an emissary was sent to puff on the emb
revenue?
avoid this shrinkage in value?
dormant and unused?
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.atriclezine.com/article/17618/atriclezine-Adding-Business-Value-How-do-you-Add-Value-in-your-Business.html">Adding Business Value: How do you Add Value in your Business?</a>
BB link (for phorums):
[url=http://www.atriclezine.com/article/17618/atriclezine-Adding-Business-Value-How-do-you-Add-Value-in-your-Business.html]Adding Business Value: How do you Add Value in your Business?[/url]
Related Articles:
Your Business Card - What Does It Say About You And Your Business?
Career Advice: Success Requires Management of Change
Bookmark it:
|