Tag Archives | Wealth Dynamics

Wealth Creation – The 8 Ways Successful Entrepreneurs Create Value

Entrepreneurs Institute LogoThe ability to create value is central and fundamental to every successful career and company.

While there are thousands of ways to make money, analysis has identified that, in reality, there are

                “only EIGHT Ways to Create Value!”

The entrepreneur who has brought this Value Creation thinking into the 21st century is Roger James Hamilton.

His outline of the underlying principles and summary of each profile in this video provides real clarity, and food for thought.

I’ll let Roger James Hamilton introduce the Wealth Dynamics framework.

I encourage you to take a few minutes to absorb the insight contained here. It could just be the best 10 minutes you spend this week.

As you watch the video you’ll probably find it helpful to refer to the image below as Roger talks through each profile.

The Wealth Dynamics ‘Square’…

The eight profiles and their inter-relationship have provided me with huge clarity. How to Create Wealth - Wealth Dynamics Square

 

So what are the EIGHT ways to Create Value?

Wealth Profile LogoThis list may well come as a complete surprise to you. However, you can probably relate readily to the very successful international entrepreneurs in each category (admittedly with an American bias).

This is not some ‘trendy topic’ either, as it has its roots going back 5,000 years into Chinese origins.

It has been brought up to date, and is backed by resources that provide a modern interpretation and guidance, once people have identified which profile they most closely fit, but more of that shortly. The eight profiles are:

1. The Creator – Builds innovative products

Examples: Steve Jobs (Apple), Walt Disney (Movies), Richard Branson (Virgin)

2. The Star – Builds an influential brand

Examples: Oprah Winfrey (Presenter), Paul Newman (Actor), Bill Clinton (ex President)

3. The Supporter – Builds high performance teams

Examples: Steve Ballmer (Microsoft), Jack Welch (General Electric)

4. The Deal Maker – Brings deals together

Examples: Donald Trump (Property tycoon), Rupert Murdoch (News International)

5. The Trader – Buys and sells commodities

Examples: George Soros (Business magnate)

6. The Accumulator – Buys and holds assets

Examples: Warren Buffet (Investor), Paul Allen (Microsoft)

7. The Lord – Controls cashflow producing assets

Examples: Lakshmi Mital (Steel tycoon), Ingavar Kamprad (IKEA)

8. The Mechanic – Creates an efficient, duplicatable system

Examples: Michael Dell (DELL), Ray Kroc (McDonalds)

Can you guess which profile you are closest to?

How will you Create Value? Take your Wealth Profile test Now!

When I took the assessment in 2012 I discovered that the Mechanic profile was the one that I matched against.

The supporting notes provided real insight into what I find easy to do, and what I find much more challenging.

In addition, it highlighted actions I should take to focus more on my strengths.

And it identified the profiles of people who I should with, as clients and partners, who I could deliver most value to.

Note: When I took the profile test again in 2015 the closest profile was Creator. A slight shift reflecting a slight role change perhaps.

So, what do Successful Entrepreneurs do?

Successful entrepreneurs focus only what they are good at. They understand which of these 8 areas they are ‘wired’ for and where they have a natural strength. By doing what is natural to them things are easier, work is more enjoyable, and great results follow too.

Crucially, they identify and work with others who are naturally good at different and complementary areas. By helping others to succeed it’s a genuine win:win.

By design or by accident, leaders of successful companies will have identified opportunities where they can create value. They do things that other businesses find difficult or expensive to do. In the consumer market we buy things other people and businesses have produced, they grow our food, build our houses, supply our energy etc etc.

What do Unsuccessful Entrepreneurs do?

Unsuccessful entrepreneurs try to do it all themselves. They are  good at some activities. But they will struggle with many others, and these activities take far longer to understand, to master and to complete. And this is time that unsuccessful entrepreneurs are not doing what they are naturally very good at, so they struggle and it’s stressful. Work becomes something to be endured and can lead to a downward spiral, physically and mentally.

Even more significantly, unsuccessful entrepreneurs struggle to find people who they can add significant value to, and they may not even know who they are looking for. There will be hundreds, thousands, even millions of other business people and entrepreneurs who will be struggling to do the things that are natural and easy for them to do.

Unsuccessful companies may have lost touch with what they are naturally very good at, or people and markets may no longer value what they do so highly. The natural strengths of the founder may have become diluted as the team has grown, and as there are more activities to be performed and managed.  The market opportunity may have moved on and yesterday’s products, services and solutions may no longer be as valuable. Competitors with greater clarity may have entered the market. And as the list of fundamental questions gets longer and more significant a turn-around seems ever more challenging.

Discover your easiest path to create value and increase your wealth

To find out which of these profiles you match, click on this link or the image below and take the test.

You’ll receive supporting resources, guidance and recommendations about the actions you can take to focus in on your natural abilities. How to create wealth - Take your Wealth Profile test Now! NB. This is an Affiliate link and if you purchase I will be credited with a small commission. Thank-you.