On a regular basis, I run into business owners and entrepreneurs who are struggling, and not getting any attention or traction. They say to me, “Greg, I love what I do and I have an awesome product/service. I can’t figure out why I’m not making any money and growing!” The reason that so many people work SO hard, and yet never seem to grow or make any real money ultimately comes down to one fundamental truth — your growth and success will be directly related to how much VALUE you create in the world. The more value you create for others, the more rewards (financially and otherwise) that come back to you. You may have heard this before, but then wonder (like so many other people) .. “Ok, HOW do you create more value?” And here’s the answer, in what I call the Value Equation. First, let me give you this million dollar formula, and then I’ll explain each of the components of it.
The Value Equation . . .
Let’s look at each of the 4 critical elements that make up this magical formula.
RTM = “Relevance To Market”
The first element is all about how RELEVANT what it is that you’re doing is to the market that you’re trying to serve. In other words, is what you are creating actually relevant to a wide enough audience that will pay attention and appreciate the value you’re trying to create?
This is often a big problem that artists run into, because they’re told that if they just “do what they love”, the money will follow. I don’t agree with that, because this isn’t how life really works. The key is to take your love, and then figure out a way to make it relevant to an audience that will appreciate and PAY for it.
EOS = “Efficacy Of Solution”
The next piece is to think about whether what you’re creating or offering actually solves a problem or challenge that the target market has (and is AWARE of). What most entrepreneurs do is they get a brilliant idea, and run off to create a business based on a product or service they’ve never tested in the market. And then, the cold hard market tells me “no thanks” because what they’re offering to the market place simply doesn’t solve a problem that the market has (or that it even knows that is has). And of course, if your product or service does NOT deliver the solution it promises, then this will collapse your Value Equation very quickly. This is where the power of “selling what they WANT, not what they NEED” comes into play. It has to solve the problem your MARKET believes they have, not the problem you THINK they should be solving.
LOR = “Leverage Of Reach”
The third element of creating value relates to the reach (or audience) that you have, and how many people are actually learning about what you do or offer. Put another way, it doesn’t matter HOW great your product or service is if no one knows about it! The real secret here is using leverage wherever possible to amplify the reach that you have. Some of the most common and powerful ways to leverage your reach include using affiliate or marketing partners, implementing effective marketing strategies, utilizing free press coverage and P.R., etc.
C&T = “Trust & Credibility”
Notice that there is a multiplication sign in front of this last critical element. This is because no matter WHAT you have going for you in the first 3 elements, if this element is ZERO, then by definition, your value is going to be zero (because without any trust or credibility .. or worse, NEGATIVE trust or credibility). Building trust and credibility with the market is the single most critical component of becoming successful and growing your business, yet most entrepreneurs focus primarily (or completely) on the product and think that it’s going to “sell itself”.
So if your business isn’t achieving the growth or success that you like, consider each of these 4 elements carefully. I can guarantee you, at LEAST one of this elements is likely suffering in your business right now, and possibly more than one.
Once you identify where your biggest weakness is within your Value Equation, you can then focus specifically on that element and implement strategies to build that element to where it contributes to your success (instead of taking away from it).
I’d love to hear from you below — which of the elements is YOUR biggest challenge that you need help with?
Post a comment and let me know what your thoughts are!
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25 Responses
I would say that LOR is my biggest challenge. This is one of the reasons that I signed up for The Authority Factor. Thanks for the post, Greg!
Thanks a million Gregg. You really over deliver
Wow — great info. I have everything on board except LOR. And that has always been my sore spot because I’m somewhat introverted and don’t feel comfortable at all in getting ‘out there’ to network. I’m not a talker but a really great doer. But the slagging economy that hit the pocketbooks of my current longstanding clients and therefore mine as well may force me to head outdoors to venture new clients. That really doesn’t sound fun to me at all.
Just read your reply and found it interesting in that I could have written it myself. Only difference is I AM a talker but I do not like to network.
My business is strong, but growth is very difficult. I think that rtm, eos, and lor are all lacking a bit. My business is a “bottle your own wine” and make beer and wine at home business. RTM and EOS are lacking due to a general belief that the wine and beer that can be made are far inferior to commercially available equivalents. This is not true, but this attitude was developed years ago before technical advances were made in the products…it has been difficult to dispel this myth on a limited marketing budget, but I do offer a full satisfaction guarantee. The LOR is low due to this business being a local geographical type business, but I have recently started selling a select number of products on-line. This hhas been a slow process, but I am hopeful that you platinum TAF course will help me develop these. My C and T are very good.
Hi Greg – My biggest challenge is definitely Leverage of Reach. I have always obtained my clients via referrals and although I could always have handled a few more, usually had an acceptable number at any given time. As I am presently rebuilding my business from a 4 year sabbatical, I definitely need some focus in this area as clients are somewhat on the sparse side in the moment. Thank you for all the fabulous information.
As a contractor, builder, remodeler etc. I believe my RTM is fine. There are enough people out there that want to build, remodel or upgrade. My EOS is solving a problem of creating shelter for the customer. Most of my customers are calling because it is something they want and don’t necessarily need. LOR needs work. It is one of the main reasons for doing TAF I have been in the industry on my own for 20 years but have recently added other services to my business which people do not know I do. C&T is excellant. Customer service and doing the job right the first time is a top priority of mine.
Thanks Greg. I am very excited about this course.
Like. Simple and powerful for business align to the marketplace
How can I get my boss to understand the C&T part of the equation? The company sells products in the "natural/organic" field. The boss focuses on SALES only, and his motto is "we are not customer service; we are order getters." I've tried to tell him that happy customers are repeat customers AND that they could refer new customers to him if only the company delivered products in a timely manner AND had high standards for customer service/problem solving.
Thank you Gregg for all the information i’m learning a lot with you thank you, thank you and may Yeshua bless You more and more.
Seems EOS and C&T are the bigest challanges. But thanks to you Greg I am working on my blog and I am looking for testers and I will get feedback and success stories from them. I need 3 months to get feedback on results of using my product.
Another problem is my english. That affects RTM. I am working on it too.
Hi Greg
We are printing t-shirts, we have all the necessary skills and equipment to do large volumes,you just made so clear to me, it means nothing.I think my business lacks in the whole equation.At least now I am aware of whats happening in my business,the next step is correct all these area’s,the problem is that i have two partners who seem to think that its all about the product.Thats why I joined TAF to make that difference in the business and also I want to become the TRUSTED AUTHORITY.
Greg Thank you so much looking forward to the TAF Program
Hi Greg:)
We embroider and print t-shirts, we have all the skills and equipment to produce large volumes,you have just openned my eyes that the above means nothing.My business is lacking the entire equation.Thank you for creating that awareness.The next step is to correct it.Looking forward to start your TAF Program.
This is becoming really fun for me knowing I have a Trusted Authority on my side and helping me become one too.
Greg Thank you
Relevance to market is the issue in my workplace. They suffer Field of Dreams and then expect marketing the 'fix' the problem when the masses don't come buying. This equation is great. Thanks Greg.
Wow, Greg , looks like you wrote this article for me, I would probably say all the elements are a big challenge fo me, the biggest being LOR ang C&T. After reading this aticle three times I can say I have loads fo work to do starting this very morning.
Thank sooo much for a great post
The single most one lacking is Trust and Credibility , second would be Leverage of Reach. Thanks Greg
Hi Greg, you know exactly what is playing in the heads of entrepreneurs. Doing what you love isn`t enough, and the best product won`t sell by it self, so true! I have to improve my LOR, no doubt to improve my business. You are like a GPS for navigationsystems in cars, still I can find my way even when the GPS fails, because YOU show the tools I need to reach my destination on the right course. Thanks!
Excellent post Greg!! This helps a lot. I am interested in learning hot to effectively build Trust & Credibility as well as an adequate way to determine "Relevance to market" especially for an NGO.
Thanks!
our values which we have to supply are dependent to the Law of the supply and the demand in the market,in the selected niche. the more value you create, which has growing dimond in the market,the more the universe rewards you.
I’m engaged to your teachings Master Greg…by the way…I lack everything : /
That’s really good stuff! Thanx for the post.
Hi, i have only just recently been addressed to your website, and read the article about Value,and which I did find very interesting and yet so puzzling, however, how would a fashion accessory designer create value. I do and yet I dont understand the term creating “value”
Thanks any comments will be greatly appreciated.
The equation really explains it. You need to create something that your market desires and you need to use Leverage of Reach to get it out to your market. Rather than just designing things based on what you think should sell, you get feedback from your market to understand what they want and are willing to buy, and then you communicate what you create into the world.
I read the article – great post, by the way! – but the formula isn’t here (or displayed) anymore, I can just try to guess it from the content 🙂 Looks like it was on some .jpg that’s not displayed, I tried on 3 different browsers.
Where can I see it, or could you write it down again, please?
Thanks a lot!