Adding Value to Your Business

“Price is what you pay when you buy an asset, value is what you receive for your money.” Warren Buffett, CEO of Hathaway.

   Value is not limited to an economic or numeric digit in your business. Value can be physical or intangible or both. Your business’ value is not determined solely by what it can bring in a sale of the business. You have value in your product, in your employees, what your company does, your assets and your relationships. Whatever you sell, your buyers perceive a value for your product. That perception is the key to adding more value to your business.

   Focusing solely on cost-cutting to reduce your expenses is short-sighted. You can compete for customers on the basis of the additional value you bring to the table. Generally for small businesses, this means customer service and retention, referrals to new customers and developing ideas to keep your name in front of new prospects by highlighting your extra values. The marketplace rewards low-cost, high volume sales. There is still a need for high customer maintenance.

   If you own a small business, you know that your customer service will give you the advantage over larger businesses. If I need cat litter, I might buy it at a discount store. If I want distinctive quilting fabric, I will shop at a quilt store that caters to the special desires and needs of quilters. The quilt stores have a loyal following because they take the time to deliver exceptional customer service, offer special ordering, help solve customer problems, and inquire after the grandkids. All this is done in the name of good business. In an age of overt customer self-sufficiency, this coddling feels good.

   As a business owner you invest in your business and employees. Recruiting, training and retaining good employees helps your business run well. You want customers to have good experiences when they use your services. This is even more critical if your business is not a bricks and mortar place. When your business is consulting, the only way customers judge your effectiveness is by the way you treat them and really listen to their concerns. Relationships are everything in small business. Your customers and employees find great value in what you offer. This keeps you in the game.

   After relationships, how you present information is critical. Most people spend only a few seconds searching for information on the Internet, so your site better contain useful information that drives traffic to your business. These ideas work for services as well as products. Information is the coin of the realm today. Here are 10 tips to help you add value. These ideas come from Dr. David J. Skyrme and were first published in Managing Information. (The idea is Dr. Skyrme’s, the definition is mine.)

Timeliness: Information changes rapidly. Keep yours up to date.

Accessibility: Information should be easy to find. No obstacles.

Usability: Keep it simple for the user.

Utility: Designed for multiple users.

Quality: Accuracy, credibility.

Customized: Appropriate for the business and user.

Medium: Portable use.

Repackaging: Update it constantly.

Flexibility: More than one way to use it.

Reusability: More people can use it and use it often.

   Adding value is a matter of caring about what you do, who you serve, why you exist and how to communicate your best to the public. This will help keep you in business and prosperity.

Have a terrific day!

Patricia