In this competitive world, many people want to start businesses or get promoted. But how exactly do you stand out? Should you exchange time, skills, or value creation for money?
In this article, we’ll talk about which one of them is the best. I understand that many of you are confused about these three concepts, so I am here to shed light on this burning topic.
Exchanging Time, Skills, and Value for Money: The Differences Revealed
A few weeks ago, someone asked me, “I have some skills to offer. Should I start a design firm or agency?”
That was a great question.
However, one thing bothered me a little bit. The person said about offering some skills. While skills play a crucial role in starting a business, they won’t give you wealth.
The same thing applies to time. When you exchange time for money, you won’t create wealth as well.
Think about this: you only have 24 hours a day. You cannot create more time which limits your earning potential.
But before I explain which option is the best, you need to understand the differences first.
Time for Money
Many graduates and aspiring entrepreneurs get into the rat race the wrong way. They have a mindset that they would get huge payouts when they put in a lot of time at work.
Unfortunately, that is not how it works in the real world. You can work 12 hours a day, seven days per week, and not create wealth.
Even if you get into the office early and stay late at night, you still might not create wealth.
When you are exchanging time for money, your income will always be limited. There are only 24 hours a day. You need eight hours of sleep and a few more hours to relax. You are left with 10 to 12 hours to exchange for time.
For instance, if you have a service-based business and charge $30 an hour, you won’t create wealth. The same principle applies if you are an employee.
Skills for Money
People who realize that trading time for money won’t create the wealth they want to trade their skills. They have a mindset that if they hone their skills and work hard, they will be rich.
Again, this is not the case. You can offer your skills to your client or boss yet not create wealth.
Even if you are excellent at what you do, you still might not create wealth.
When you are exchanging skills for money, your income will always be limited. If you do something well, you cannot duplicate yourself to do more work.
In addition, your skills will be hard to duplicate because it is composed of your personal experience and years of training.
For instance, if you have a service-based business and charge a specific amount based on your skills, you won’t create wealth because you are the only one who can do it. The same concept applies if you are an employee.
Value Creation for Money
So how exactly do you create wealth?
The answer is simple: provide value.
Those who provide value are the most successful people in the world. Think about Steve Jobs. Steve Jobs did not trade his time or skills for money. Instead, he sold value for money through revolutionary devices.
As a result, people gave him a ton of money in exchange for the value he offered. Apple products gave people the value they are looking for, so Jobs created wealth.
Unlike trading time or skills, trading value for money creates wealth. When you offer value, your earning potential becomes unlimited.
Your clients will pay a high price if you give them value. You can get a promotion if you give your boss value.
In addition, trading value for money means that you have an unlimited impact. Whether you impact your clients, boss, or colleagues, creating value lets you positively impact people.
Trading value for money also allows you to help others achieve their dreams.
For instance, if you lead a service-based business that helps other companies with their marketing, you help them achieve their goals. Similarly, if you are an employee who gives the correct value to your boss, you help your company achieve its goals.
You are rewarded based on the value you created. Whether you are an entrepreneur or an employee, providing value helps you achieve financial freedom.
How to Exchange Value for Money
Now that you know the value for money meaning, it’s time to understand how to trade it.
If you’ve been wondering how to start trading value for money, I got your back. Here’s how to exchange value for money:
Change your mindset
If you think like a regular student or employee, change your mindset. If you believe that long hours and hard work can create wealth, change your perspective.
I understand that this is hard to do at first. However, it would help if you reminded yourself that you need to have a value-creating mindset to succeed.
Find the value your clients or company needs
People see value differently. What society values now is different from what it valued 20 years ago. Similarly, what one client values differ from what another client values.
Hence, you should know the value your client or company needs. Is it getting more people to buy their products? Is it saving time?
Whatever it is, make sure it is the value they need, not what you perceive.
Test your data
Once you ask your client or boss the value they need, ask a group of people like them. By doing this, you verify if more people need the value you offer.
After you verify this, find more people you can offer this same value to. Time and skills won’t limit your earning potential anymore. Over time, you can create wealth.
Many business owners I talked to work extremely hard. They put a lot of time and effort into their ventures. However, they cannot create wealth.
If you currently trade your time or skills for money, rethink your business model. Move towards creating value. Be a value creator.
Want to know more about creating value for others?