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The Value Equation: Simplifying What Truly Matters for Growth


We hear that word all the time.

The key to wealth, relationships, and building a money-making business.

The reason businesses fail or succeed is all up to how much value they provide.

But truly and honestly, what is "value"?

There are a few words that trigger me and take me back to high school.

Specifically 12th grade physics class.

Before that class, I lauded myself as a great student.

However, every day at 8:25 a.m. I was bombarded with concepts that my brain could not comprehend.

Acceleration, velocity, speed, momentum, gravity; I could see, and read, but not understand.

Today, the word “value” gives me the same vibes.

Don’t know what I mean?

Below are a few definitions of the word “value” from industry and business professionals.

Let's see if you have clarity after reading these…

(click ">" below to reveal more value)

Seth Godin

"Brand value is the sum total of how much extra people will pay, or how often they choose, the expectations, memories, stories, and relationships of one brand over the alternatives." - Seth Godin

Richard Branson

Angela Ahrendts

David Aaker

Simon Mainwaring

See what I mean?

I meditated on this word "value", mentally masticating on all the definitions and applications until I had a delicious symbolism.

Ice Cream

If you visit an ice cream shop and ask the clerk, “I’d like one ice cream please!”

What do you think they would ask you?

Exactly, “What flavor would you like?”

The same is true about value.

Value comes in flavors.

There are key ingredients that must be in the formula to make ice cream.

The same is true for making value.

This led me to synthesize the base recipe for creating value.

Value Exchange

To define value you must start with a value exchange.

A “Value exchange” is the action of people trading their value, so that they will have equal, different, or greater value.

The exchange of time for a meeting to discuss a business growth idea.

The exchange of time to be with a friend for laughter or comfort.

The exchange of an item for money.

The exchange of phone numbers for communication.

To create value we need that type of initial exchange.

Yet, we also need to cause people to repeatedly perform an exchange us.

This leads to the next two elements of value.

Expectations & Trust

After an initial exchange, there are two more things that one must fulfill to build value.

Those two things are expectations & trust.

After an exchange we all walk away with expectations, if those expectations are met, the level of trust goes up.

If expectations continue to be met time and time again, no matter how things may change, trust is developed.

Once trust is established, we finally have value.

How you decide to execute this equation is nuanced.

There are different "flavors of value" that are trusted for success in the digital world versus the real world.

Thanks for reading my notes.

Good Luck!

This blog post is article 01 in the Value Series written by Good Luck Gabe




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