Thread by @c_shepherds

Welcome to today's edition of #navigatewithidy brought to you by @c_shepherds. In today's edition, @IdyEnang will be sharing his #ThursdayThoughts on the concept of Value Creation within the context of business.

To join the conversation, tune in to @LagosTalks913.

Every successful business creates something of value. The world is full of opportunities to make other people's life better in some way...

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

...while your role as the business executive, is to identify the things that people don't have enough of and provide them.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Without value creation, a business cannot exist. The limit you can go is as far as you can create. The best businesses in the world are those that create value for other people.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

The more real value you create for other people, the better your business will be and the more prosperous you will become.

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A business is a repeatable process that:

1. creates & deliver something of value
2. other people want or need
3. at a price they are willing to pay

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Understand that there is a difference between the willingness to pay & the ability to pay. Both would win in either direction or towards a common goal.

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If your business does not bring enough profit to make it worth the while, you are going to discontinue operation.

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A venture that creates value for others can be a hobby. Some people also believe that a venture that does not create value for others can be a hobby.

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A venture that doesn't bring enough money to keep operations will inevitably close or shut down.

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Every business man/woman must understand that running a business isn't a walk in the park. Business is simply the process of identifying a problem & finding a way to solve it that benefits both parties...

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

...and you need to have a win-win situation. To one, profit and to the other, the satisfaction gained from the use of that product.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Marketing is identifying the need and fulfilling the need at a profit. If you are thinking of starting a business, you need to understand the fundamentals of marketing.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Every business that is doing well always use the terms: value creation, marketing, sales, value delivery & finance.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

When the 'people' factor come to play in all of these, you will understand that you need valuable skills...

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

...If you want to improve your value as a business person, then you need to focus on improving skills that are directly relates to the 5 inter-dependencies.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Not every skill or area of knowledge is economically valuable and that is OKAY. There are some skills, area or knowledge that will be worth pursuing for the sake of relaxation & not for commercialization.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Making that transition from personal enjoyment to product & services involves you having the requisite skills.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Any skill or knowledge that helps you create value, market, sell, deliver value or allows you to manage your finances is economically valuable & this in turn will meet the core of your existence as a human being.

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If you are thinking of starting a new business or expanding an existing business into a new market, it is absolutely critical that you do some research before you leap.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Ten Ways to Evaluate A Market if you are just starting a new business or expand an existing business into a new market:
1. Urgency: how badly do people want or need this right now?

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

2. Market size: how many people are actively purchasing things like this? The size of market will determine the mode of entry

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3. The Pricing Potential: What is the highest price a typical purchaser will be willing to spend for that particular solution.

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4. The cost of customer acquisition: How easy is it to acquire a new customer?

How much will it cost to generate a sale in both money & effort

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5. The cost of value delivery: How much will it cost to create & deliver the value offer both in money and in effort?

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6. Uniqueness of Offer: How unique is your offer versus competing offerings in the market & how easy is it for potential competitors to copy you.

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7. Speed to market: How quickly can you create something to sell?

8. Upfront Investment: How much will you have to invest before you are ready to serve?

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9. The Upsell Potential: Are there related secondary offers that you could also present to purchasing customers?

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10. Evergreen potential: Once the initial offer has been created, how much additional work will you have to put in for you to continue selling?

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Rate the above factors on a scale of 0 to 10 with 0 being the least.

If the total score is 75 or above, you have a promising idea & what you need to do is to go full throttle.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Anything between 50 & 75 has the potential to pay some bills but will not take you on the ling run without a huge investment of energy and resources...

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

...but it is your call to make & understand what you need to do very differently.

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One of the most common experiences of a first time entrepreneur is discovering that your brilliant business idea isn't as original as you have thought.

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Other businesses are already offering similar services, products & engagement. But remember, when any two markets are equally attractive in other respects, you are better off choosing to enter the one with competition.

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The market with competition, will give you a more respectable attraction and opportunity to succeed.

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The existence of a market means that you are already on the right side because the customer is on that side.

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So, you can spend enough time developing your offer, adding more incentives instead of proving that a market exists. Observe what your potential competitors are doing so that you become very successful.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Learn everything you can from your competitor, then create something even more valuable.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

If you want to go into a line of business, you can start by being a customer first. Be a customer of one of the players, get to understand what they offer & how they offer...

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

...the issues they get into. These will teach you about the market, it will tell you about the value that a competitor provides...

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

...It will tell you how they attract attention, how they charge, close their sales & make their customers happy.

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

What you need to do is to understand the MERCENARY RULE. A quote by Henry Fielding says: "Make money your god and it will plague you like the devil."

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

Becoming a mercenary does not pay, don't start a business for the money alone. Starting & running a business always take more effort than you first expect even if you identify a business that will likely run itself...

#navigatewithidy #valuecreation @IdyEnang @LagosTalks913

... setting up the systems necessary to run the business requires a lot of persistence & dedication.

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If the only thing that interests you about an opportunity is the money, you will probably quit even before you find the pot of gold.

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When you build or finish anything, it is mostly a matter of starting over and over again. Don't ignore what pulls you!

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The trick is to find an attractive market that interests you enough to keep you improving your offering every single day!

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Finding that market is mostly a matter of patience & active exploration.

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If you are able to find a way to make a necessary but dull market interesting enough to pursue, you may have discovered a hidden pot of gold waiting to be mined.

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Moving from the mercenary rule to the CRUSADER RULE...Being a crusader doesn't pay either. Every once in a while you need to find an idea so fascinating that it becomes hard to think about it objectively.

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Changing the world is difficult if you can't pay the bills.

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It is not every idea that has enough to support it. That doesn't mean you should ignore them, it just means that you can make it a side project which can help you expand your knowledge...

#navigatewithidy #valuecreation #ThursdayThoughts @IdyEnang @LagosTalks913

...it can help you improve your skills, it can help you experiment with new methods & technologies & techniques.

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Friends, before launching a business, take the time to do a thorough evaluation.

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Thank you so much for being a part of today's edition of #navigatewithidy. We look forward to having you on the next episode next week Tuesday.

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