This article continues the discussion of value and value creation which has begun in the post ‘Why Boss Makes More Money Than Employee’. I started researching the meaning of value after learning that the understanding of value was the key to success of Sean Combs’ (also known as P Diddy) widely ranged portfolio of businesses. The guy is not an actor, recording artist, fashion designer or even a salesman; he is a true definition of entrepreneur who mastered the art of adding value to his products. It is exactly what he teaches his children, including his son whom he bought a Maybach for present.

The definition of value

In simple terms it is exactly what people pay money for. Nobody pays for a product, service or experience - they pay for the value these things bring to their lives. A fat person doesn’t pay for weight loss program but pays for improved self-esteem it gives as the result, people don’t spend money on a haircut to make their hair look good - they do it because they get better social acceptance in return, in the same way, nobody pays to jump out of the plane with a parachute - they do it because it will allow them to combat their fear and discover their stronger selves. You see where I am going with it?

Everything in life is created in the way that it can provide value, any sort of value. If it is not the value itself than it is the medium that increases the value of a particular item. Just take a look at your life from the side and you will understand it. We are constantly bombarded with TV commercials and pictures of people wearing trendy new-season clothes in magazines. Why? Because designers want to increase value of their products that would make us want to buy them. And what happens if we don’t? Then we suddenly become less accepted in the society as we don’t wear the latest fashion fabric. If you have a child or remember yourself being one you know that the effect is multiplied many times when a child wants to go to a concert of a new singer whom you don’t even know. This simply happens because a child was affected by the process of value creation behind your back.

In school we were told that an object can not exist without a subject/subjective opinion. This exactly what happens in the real world. Unless value is added to any particular part of our lives it simply carries no meaning. Think about it.

How to use this knowledge?

The main purpose of any business which operates for profit is to create the value and then sell it to client or customer. The process that adds value can be an employee who works on the project or machinery that makes something automatically. The good news is you don’t need to be a huge corporation to be able to produce value; there are plenty of self-employed individuals who do just that on their own. An example could be writing your own book, providing a service or even starting your own blog just like this one you are reading right now.

Come back next week to find out how the Internet revolutionized the process of delivering value to the end users, bringing with it plenty of opportunities for people who would like to become their own boss.