How many of you would like to
make a lot of money?
How many would like to make a lot
of money quickly?
If I told you there was an exact
law that determined how or if you made money would you believe me?
Well there is and it has been in
existence for a very very long time. For those that did economics in secondary
school you would have come across it but might not have taken much notice of
it.
No matter where you go or how
much you read making money all boils done to this one law and it is called the
law of income. It reminds me of the
saying simple but not easy.
This law says “You would be paid
in direct proportion to the value you deliver according to the market
place. I do not mean to over simplify
things but the reason must people do not make a lot of money is simply because
they not deliver a lot of value in the eyes of the market place.” The important
issue to note here is delivering.
I am sure many of us have a lot
of great ideas. It has even been noted that the place with the greatest number
of great ideas is the cemetery as many people are buried with this ideas.
Having an idea is one thing, converting the idea in to a product or business is
another but actually delivering this product in enough quantity to make a
substantial profit if the main thing.
So if you do not deliver a lot of
value you just don’t get paid a lot. It is that simple.
To put this principle or law to
work i.e. to be able to deliver value we must first understand what constitute
value to the market place.
Value is made up of four
components we are all very familiar with; we have heard it mentioned lots of
times even though must have never given thought to them.
They are:
·
Demand
·
Supply
·
Quality
·
Quantity
DEMAND
This simply is how much do people
want the service you provide or the product you sell. To make money first and
foremost people have to want what you have to deliver. Again this might sound
logical but many people fall prey to the notion that because they think there
is a need for the service or because they believe in it people want it. No
matter how beautiful or perfect and idea is to you, you have to understand that
that is simply your own opinion and no one else may agree with you. That is why
it is essential to embark on some sort of market research to ascertain people
actually need or wants what you make before you delve into that field. Some say there is no such thing as a bad
product only bad marketers but I beg to differ. If the demand is not there you
might sell a few but you would never become wealthy.
So first and foremost people must
want the service your provide or the product you sell.
SUPPLY
This reflects how much of your
product or service is already available in the market place and how readily
available it is. Why does a brain surgeon earn as much in one day as a petrol
attendant earns in one year. Simply because he or she has a rare and
specialized skill and there are millions of people who can sell petrol. When
supply is limited, the value increases.
To increase your value you must
provide something few others have or do something in a way that no one else
does.
QUALITY
This refers to how good your
products or services are. The higher the quality in relation to the price the
higher the value. I have adopted a motto in business which is “do it well or
don’t do it at all. Make it great or don’t make it at all”
Does quality affect your income?
You bet it does. Do you return to a business if you receive shoddy service the first time? Neither do others.
Once an artist who believed
himself to be quite good in his craft objected to this because he felt he had
quality products but was still broke. He didn’t realize that it meant he was
bad at business.
The mistake most people make
though is that when it comes to quality they focus only on the quality on the
product and not on how good they are at business. Because no matter how good
your product is, if you are not a quality business man there is a limit to how
much you can grow. Though your product is good you still have to know how to
market, understand financial management and operational management to get
ahead.
QUANTITY
This is how much of your product
or service that you actually deliver. Of all the four factors most people have
the greatest challenge with this. They have a good product, people want the
product, supply in limited to the extent that they can make a huge profit but
they do not deliver in enough quantity to make a killing.
If you want to get paid you must
deliver your value to people, if you want to get rich you must deliver your
value to a lot of people. That is why regardless of the business you are in part
of your revenue must come from product sales.
A product enhances your ability
to deliver massive quantities as there are no limits on how much you can
produce and deliver therefore there is no limit to your income which is the
case in a service because it depends sole on people.
CONCLUSION
Demand, supply, quality and
quantity are the cornerstones of value and delivering massive value is an
essential part of making money and making it quickly.
Remember you would be paid in
direct proportion to the value you deliver according to the market place.
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