Business

Money, Value and Your Business

qrops-currency-choiceIt is important to understand the history behind the creation of money to fully understand its value and relation to business.

Money (currency) as we know it, was created to solve some issues with the barter system. The barter system worked based on the value a single individual placed on a particular good or service in exchange for another. Therefore, the value or worth placed on a good or service was not uniform, but, based on individual perception and need. For example, I may personally value 10 boxes of apple to be worth 7 cows based on my need. While, another individual might value 7 cows to be worth a bar of gold based on their own need. Money was, therefore, created to provide a generally acceptable value on goods and services. Based on the value a good or service is generally acceptable to provide, a certain amount of money is expected or required for it.

In simple terms, value equals money. Therefore, money will flow in the direction of value. The kind of value you create with your business will ultimately determine the monetary value you will derive from it. What kind of value are you adding to the services you provide in your business? Is your business equipped for continuous value creation?

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Author: Yetunde Oresanya, Olive Hill Consulting  (www.olivehillconsulting.com)