In my business career I have had contact with many young and not so young people working to earn money. What I found out is that they seldom realize what they are actually paid for.
When I discovered this, I decided to start my own educational crusade. In my crusade I want to help people to realize their potential by understanding some basic market principles.
We have to start with the market. What is the market? The market is you and me! It is the group of consumers who in the end decide what is valuable for them and how they want to spend their money. All other definitions just derived from this one, simple definition.
So what is business all about? Business is to find the way to understand why and on which products people like you and I want to spend money. The business is to find out what is valuable to consumers and deliver it on time and within an acceptable price.
Now let’s look at what we are paid for? When you read my definitions above you can correctly conclude that we are paid for bringing value to the marketplace on time (when the market needs it).
This is the most important principle to understand.
Many people think that they are paid for the work they are performing or for the time they spend on activities. To deliver value to the marketplace, you need to do some activities and it will cost time, but we are not paid for these activities and time!
We are paid for the delivered value that the marketplace is willing to accept and pay for.
So, how can we do that?
I found out that you bring more value to the marketplace by becoming more valuable!
Now someone says:’ but I am only operating a machine, I do not know why and for whom I am producing, I do not even know what this part is for!’
I suggest that you will find out! Your future depends on it! Just by doing that you will be more valuable when compared to others who will not. Now if you will use your skills, knowledge and experience to make things better, quicker, cheaper your value will increase even more!
You see, in the marketplace we have a ladder. It starts with a few dollars to be received on the bottom step and it ends with millions of dollars on the top. So what is the difference between the bottom and the top?
Evidently the difference is the ability to deliver more value to the marketplace!
Someone who can see the trends, needs and possibilities on the marketplace. Someone who can organize people to make the products and to deliver them to the marketplace for an acceptable price and on time will be paid much more than someone who can’t.
The first person will be more valuable to the marketplace than the second one!
Please do not misunderstand me. I know that money is not the only measure of being a valuable person. Someone can be very valuable to the family, neighborhood, group etc. Still the person will not receive much money!
To receive more money the person needs to be more valuable to the marketplace and needs to bring more value to the marketplace.
That is why when I talk to young and not so young people about their income, my advice is to look for ways to become more valuable to the marketplace. It is our responsibility to find the ways, to understand the marketplace, to look for trends and continuously try to deliver better value to people who are willing to pay for it!
Someone can ask: is it really possible? Well this one is almost self-evident. Just look around you and you will see people who are being paid 10 times as much or 100 time as much as minimum wages.
You will not create this kind of money waiting for the increase of minimum salaries or waiting for a yearly increase of the income. You will for sure not get this kind of money by going on strike!
A good question would be: what do I need to know, which skills do I need to have to become more valuable?
My top 7 would be:
- Learn to listen and to observe
- Learn to communicate
- Learn to set goals
- Learn to sell
- Learn to organize
- Learn to recruit the right people
- Learn to recognize people for a job well done