If you pick up any business magazine, or if you read any book by one of the many business gurus out there, you’re bound to come across the notion of “adding value”. The term is often thrown around in the context of adding value to your product or adding value to your business. But what exactly do they mean by adding value to a business? Also, how can you go about adding this value to you your business?
What is Meant by Creating Business Value?
Adding value to a business or product means making it better. It’s that simple. The measure of it being better can be objective or subjective – that is it can be inherently better or give the perception of being better. For a product it can be something physical, such as enhanced battery life. But creating business value can be a little more subtle. There’s also the matter of who are the beneficiaries of this added business value, the customers or the employees? This is what we’re going to be discussing today. We’re going to be answering these kinds of questions and covering how to add value to your business from within and adding value for customers.
Who Benefits from Value Added to a Business?
Previously we put forth the question of who benefits from value added to a business, the customers or the employees. The answer is both. If adding value means to make something better, then the result of adding value to your business means a better experience for your customers and a better work environment for your employees.
How to Encourage Performance and Create Business Value
1 – Simplify
Apple has provided us with one of the great examples of value being added to a product. When they released the Mac they were competing with the many IBM clones that were already on the market. Apple added value to the Mac by making it simple to use for the average computer user. This simplicity gave them a big advantage that led to Apple becoming the large and prosperous company it is today. There is a lot to be learned from adding value through simplification, for products and for businesses. If your business systems and processes are simple, more work will get done in a shorter amount of time. Keeping the business operations as simple as possible will create a better working environment for your employees, which will in turn lead to a better experience for customers.
2 – Do it Faster
This is the internet age, and business happens at a pace never before seen in human history. People expect products or services quickly. If you are able to provide your customers with what they need quickly, perhaps even faster than competitors, then that is a huge added value. The same can be said for internal business operations. You want your systems and procedures to be simple, but they should also be fast. Keeping things simple will go a long way in making for smooth and fast business operations, but speed is still something to keep in mind when designing company procedures. Fast procedures mean fast work, which leads to greater performance.
3 – Quality Focus
Having superior quality is a fundamental way to add value to your offerings for customers. People want high-quality experiences, whether that be in using a quality product or receiving a quality service. Making sure that what your customers experience is of the highest quality that you can provide will make the value that you are adding all the more apparent. Also, quality provided to customers has a way of running deep within a company. It provides the employees with a sense of pride, which ends up adding value to the business itself. Employees that have a sense of purpose and pride will always perform to a higher standard.
4 – Be Convenient
Who doesn’t love convenience? Customers always do. If your company offers a service, make sure that it is offered in a way which is convenient. That can mean having flexible hours for delivering the service, or some other way to cater to your customers’ needs. If you’re in the products business then your product needs to make the life of your customers more convenient. You can also add a lot of value to your business in ways that makes life more convenient for your employees. Flexible scheduling is one such way you can do this. Improving the quality of life for your employees is a way of adding value to your business that will greatly increase performance.
5 – Money Matters
Money is one of the core contributors to value in any business. When talking about money in relation to customers, we’re talking about price. Your product or service needs to be competitively priced in order for customers to perceive value. Another great way to add value to a product through pricing is by offering planned discounts or sales. Customers always appreciate the value added by a good deal. For employees, money means pay. Employees don’t need to be paid huge salaries, but they need to be paid fairly. They should never feel that they are being taking advantage of. Making sure that you workers are appropriately compensated, either through salaries or bonuses, will add value to your company and will create a workforce that will go to the ends of the Earth for you.
The Next Step in Adding Value
If you have a new small business and you are reading this, then you are researching how to add value to your business. That means you are already taking the first steps in creating business value. Taggart & Partners is a small business advisor that can help you take the next steps. You can reach out to us for business advice by calling (07) 3391 1188, e-mailing email@example.com, or by getting in touch online.