Where do you find value in your business? Is it a coveted investment? A great hire? Teamwork and collaboration? Or perhaps it’s the value your customers get from your product or service. Whatever you value most helps steer your company in the right direction. But what you value can change at different stages of your business. Adapting with a growth mindset is the only way to go for true business success.
The path is different for every business leader and company. Regardless of path, develop your goals and stick to them, but be flexible with the methods for achieving your goals.
When Joe started his consumer packaged goods business, he was driven by his company’s mission to sustainably manufacture home products. He had a strong mission, killer proprietary formulas, and a plan of action to get his products sold. Unfortunately, what he had in ambition, he lacked in a proper space to execute his plan and fulfill orders. Joe needed to find a space that allowed him to work efficiently, and accommodate the growth he expected to see as his business took off.
Joe’s goal was to get his products in the hands of people who will love them and support his vision. But to achieve this, he needed to invest in the right space, the right strategy, and the right team to harness growth and scale his business.
As a growth-minded business leader, it’s critical that Joe understand the value equation and how it applies to finding the perfect space to cultivate his business.
Three Levels of Value
Value is a formula: price + quality + benefit = value. Heard of it before? As a business leader, it’s your job to position your product or service at the best possible intersection between the three. It’s also important that your own business decisions are made with this equation in mind. Let’s dig into each of the components:
Price – Nothing sways a buyer more than price. Priced too high and it will be a big challenge to get customers to pay the premium, but priced too low, potential customers may be concerned it’s not good quality. When growing your business, the equation is critical to uncover the highest possible revenue while building value in your brand.
For your own business, when considering a big expense like an office space, you don’t want to base your decision solely on price. Why? Well, “you get what you pay for.” Pick the lowest price option and you’ll be sacrificing the other levels of value – quality and benefits.
Quality – If you have an exceptionally higher quality product than your competitors, you’re going to charge a higher price. Your bottom line demands it. But make sure you’re communicating the quality difference (and why it matters) to your potential customers. Quality is crucial and is the difference between a terrible experience and a premium experience.
For your own business, if you shop for quality without paying attention to price, you may make purchasing decisions that you just aren’t ready to sustain yet. Even with the value equation in mind, your budget still matters.
Always be realistic and buy what your business can afford at the moment. It’s good to have expected projections, but when making decisions today, you need to think about what you have, not what you may have down the line. Finding flexible options helps to avoid issues as your business grows.
Benefits – Benefits are great! But when they become central to your decision-making, you’ll sacrifice quality and price. Aim for benefits to be supplementary to an underlying problem that needs solving. Communicate the problem your product solves first and foremost, then incorporate the benefits as a bonus for your product.
As a business leader, what problem are you solving?
If you shop based on the benefits, you may lose sight of what you actually need to solve your problem. Let’s say you’re looking for shared office space and you tour spaces that offer ping pong tables, free food, and mini-golf in the office. On the other hand, it lacks basics like a printer, mailboxes, and reliable and secure WiFi. You can’t let desired benefits outweigh quality. Your business won’t run on ping pong and mini-golf tournaments.
The Key to Sustainably Scaling
Let’s take this back to Joe. He strategically hired the right people and now he needs to find the right space to successfully manufacture his products and run his business. If he searches for a space with only one of the values in mind, he’s going to compromise on some level.
He needs to understand where his business is now – and where it’s going to be in 3 to 6 months from now. Can his space sustain his growth? What about 5 years down the line? As a growth-minded entrepreneur, Joe needs to set his company up for success spatially. Coworking spaces may be the perfect fit for Joe’s business and other growth-minded businesses who need the adjustability to increase workspace with value in mind.
Coworking spaces offer the value of flexible workspaces so you can focus on growing and evolving your business, and not worry about the operational costs and new leases.
Mac6’s long-time co-manufacturing member, Truce quickly and efficiently scaled their space, “After only 6 months, Truce found themselves needing more room! In true Mac6 style, we worked with Truce to increase their manufacturing area up to 1239 sq. ft. This marked a momentous transition for Truce, making loading docks accessible and the shift to increased shipping and receiving almost effortless.”
How To Find Your Best Space
Finding the right space is all about your business today and your growth projections. The right space needs to suit you today and accommodate your growth.
Determine your non-negotiables for your space. WiFi, coffee, printer, and respectful members are a given, but what about the other non-negotiables you need for growth? Space to expand? A manufacturing area to create your products? A silent space for client calls and working on deadlines? Or do you need a vibrant, buzzing open office setting? Take some time to identify what the essentials you need to grow your business. Jot them down and make sure every space you tour has a good value equation balance of price, quality, and benefits regarding your non-negotiables.
After deciding your non-negotiables, jot down things that would be nice to have; consider the benefits that aren’t completely necessary. Perhaps a gym? Other members to collaborate with? Or community events? Put them into the value equation – price, quality, benefit – to determine the best space for your business.
Entrepreneurs have a lot of responsibility. Responsibility to innovate, manage, and most importantly, grow. That’s why every single decision you make as a business leader needs to be based on the value equation – for you and your customers.
Are you ready to experience co-working and co-manufacturing in full force? At Mac6, we serve Tempe, Arizona area growth-minded entrepreneurs who are passionate about their businesses and community. Contact us to learn more and set up a tour.