Value Creation

Value Proposition

Your value proposition is the first requirement before having a business.  This refers how you create values for others. The three main value propositions business choose from are either

  1. Retail
  2. Production
  3. Service

Value Creation

Value Creation is the most dominant strategy of business today.  Businesses compete in how they can create value for different stakeholders.

It is in the spirit of business to be able to approach a situation and create value for multiple parties.  This strategy is profoundly fun as it is organic.  This focus will encourage creativity in how we solve the challenges we face in any environment and is not limited to who can use it.  Anyone with a genuine interest can become empowered to step up to a challenge and feel they are making a difference by seeking ways of mutual benefit.

If you want to start a business take this concept and allow it to help you find creative solutions to challenges, and help brainstorm suitable projects for your efforts.

Where Value Strategies are in Use Today


When a manufacturer creates a high quality product, this high quality can be discovered by shoppers and provide retailers with a star product, that repeatedly sells through.

A manufacture increases the sustainability of their products for distributors and retailers by making quality products that are demanded and respected in the market.  Products that can earn a customers repeated trust.

A manufacture can have in place for distributors a Dead on Arrival agreement, where if a product arrives defective or an otherwise unacceptable condition; the manufacturer will replace or repair the product.

A product with a warranty helps customers to have their products replaced or repaired, and can increase loyalty if never creating a dead end experience.

Many Companies have distributor programs that are there to protect the sales of the distributors to a geographical area, this creates loyalty among the distributors and helps protect their viability in their markets.

A product with a lower cost can help many customers save money, lower cost may have to be traded for quality though, so it’s a fine balance once met.


Good and lenient return policies allows customers to enjoy products and return them if they do not meet quality standards.

Good customer service representatives could calm down upset customers lowering bad reviews and by resolving issues, which can lead to a more positive experience.

Providing customers a needed experience and value can create repeat customers allowing them to settle into a behavior of coming back to a specific storefront for their shopping needs.

There is increased consumer empowerment with many public feedback systems in place to allow a customer to provide insight, to how a business has done in providing value with its services or products.


Can create great experience for patrons, reducing refunds, and encourage repeating customers.

Can work together creating more diverse and higher quality results of human effort.

Can create guiding principles of a business entity and provide more strategies employed by a business.

As an employee you can help create an extraordinary and valuable experience or product to customers, the business, and ultimately for all stakeholders.

An respect of education for employees and employers offers an environment and many resources to further understanding and create more skilled individuals.


A Community can be provided with value by a company adopting green measures helping to preserve natural resources and reduce pollution.

Some companies have internship programs and hire from colleges, providing a source for graduates to become more competitive among other job seekers.

Employers and Businesses

Financial stakeholders can provide capital for a business to acquire what it needs to enter a competitive market to a position where it can operate at a profit.

Can have benefit programs to help their employees stay healthy and able to work.

Can create safe, respectable and great work environments for their employees.

Can award productive and above standard performance to create an environment that desires and awards above standard performance.

Businesses can provide financial stakeholders a good investment with dividends, profitability, and a successful progress towards its mission.

This has also encouraged many company’s success as they make efforts to provide better benefit packages to retain their best performing employees; they are providing value to their employees to retain and support the lives of their greatest contributors.  This will inspire employees to be productive as their livelihoods are made to matter to a large organization.


Value creation is everywhere as one of the strongest strategies that you can use to create a relevant and realistic business idea.  Most of the largest companies that stand today can claim many ways they have created value.  The number of people they employ, their support and contributions to different communities, the spectacular service, the low prices, fastest shipping, etc.

Searching for ways to create Value can help you find out what business to start, that is tailored to your experience, interests, or position.

What is heavily apparent is that over time; businesses have evolved in their roles in the lives of the community.  Businesses once had the main driving focus set around expansion and increasing sales.  Fast forward to now, there are many strategies surrounding a business and its role in the bigger scheme of things.  The push in businesses to take a responsibility to include a strong emphasis on human resources, and value creation is definitely here to stay.

So value creation is a strategy that can be employed by any person, from any position, and with have favorable results, most of the time.

I felt it was important to write about value creation to show its versatility and my support for this strategy.  Many have this idea that inspiration to start a business, mainly comes from a profit-motive.  The profit-motive is a perspective that has its limits though, so value creation will eventually be asked once you enter a marketplace.  Value-creation incorporates the profit responsibility, but also asks the entrepreneur or professional to create something that is creative, and needed as much as profitable.

People may generally be less likely to work with you if you appear strictly profit-motivated.  Yes, even though a business needs to have a profit year over year that covers its expenses and taxes; it is better to approach a situation with the intent to create value for everyone involved. Try approaching every business you encounter, with the genuine search for value creation; if you are dedicated, you might find what business to start.

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Want to start your own business one day? Before you do, understand more concepts as you work towards sustainability.

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