VALUE FOR VALUE EXCHANGE...

From time to time we get trivial situations that conflict our business ethic with personal interests. In our society we tend to mistake charity for business through providing favors to people at the expense of profit. We are all too willing to do this, usually because somewhere in our culture we should help each other through sacrifice even though we lose money doing it. However as a business person, you have to be greedy because business is a value for value exchange.

What this means is that if you are providing a product or service to a customer, there should be a value for value exchange,  preferably in monetary form.

Successful people understand that when a service is provided to a market place, the other party parts away with cash. A lot of people mistake charity for business and what they don’t realize is that they need the money for bills, food, transport and to live. Therefore a product or service has to be paid for.

I had a situation where I was awarded a good chunk of prize money and I had no immediate need for my new found fortune. The story got out that I had some loose change and before I knew what was happening, my usual clients thought it would be the best time to request for heavy discounts, because I could afford to. This is a typical example of how business starts to struggle simply because the culture of having someone to subsidize your life through discounts and giveaways is rife. If I had accepted their suggestions that I could afford to lose some money, I would have to subsidize them at  my own expense. However, I decided to invest the money and expand my operations to generate more revenue for myself. This way I can afford to give discounts without impacting my income significantly.

It doesn’t make sense to try to save the world while you are struggling with your finances. Save yourself and make sure your income is right before you try to save the world by subsidizing. The world doesn’t need any more financially challenged or broke people. The world need s you to be able to sustain yourself and grow your wealth and to help other people to become financially independent.

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