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What is New Wealth Creation?

 

Entrepreneurs and business owners must try to create products or services that are distinctly unique and perceived to be so by the customer as this is the formula that leads to the creation of new wealth, this must be a constant philosophy, driving force for the business.

Let us differentiate between need and want.  Food, clothes, shelter were basic needs until the last century.  Electricity, telephones, cars were wants until the last century.  There creation moved from being a want to a basic need.  This lead us to work more efficiently and intelligently creating new wealth for both the enterprise that created the new product or service and created new wealth for all of us by freeing up our time and energy allowing us to earn more.  Computers telephones, email, cell phones, microwaves also were a “want” 3 decades ago and transcended to become a basic need very quickly and in the process created new wealth for all.

The Sonicare tooth brush invented 2 decades ago in a garage and Starbucks with their fancy innovative coffee drinks, has transcended from being a want to almost a need or perceived need creating new wealth in the process for all.  Keep in mind that as Enterprises grow, they have to reinvent themselves creating new products or services or these enterprises move away from the vision of the founders and get involved in distribution of wealth for short term profits.  And this is when they get into trouble!

When a unique product or service transcends from being a want to a need or perceived need, new wealth is created for the enterprise and for all of humanity.

How can a plumber differentiate himself and be unique?  When is the last time a plumber has come to you at your convenience?  Most times they want to come to your house to fix things when you are at work.  Distinctively Unique Plumbing Company comes to fix things at your convenience, for example, after 6 pm or at your convenience when you are not working.  With his unique service slogan “Plumbing fixed at the time convenient to you!” he could easily charge 20% more for the service.  The company doing so would not pay a penny more in wages as the plumber sent to you would just have a different work shift.  This plumbing company has created new wealth for itself and for you the consumer as your work schedule was not interrupted.  In the mind of the person receiving this unique plumbing company service, it has transcended to being the plumbing company they need not want!  The plumbing company has developed a brand, its unique service and service slogan.

Enterprises and businesses that are simply redistributing wealth and money may make money in the short term but do not have longevity as they are constantly competing with each other on price and not focusing on creating unique product or service so when somebody offers the same product or service at a lower price, these businesses are destroyed.  For example, Company A making a $100 jacket is destroyed when Company B makes the same jacket cheaper for $95.  And Company C destroys Company B and A making the jacket for $90 and so on.  All the companies competing on price alone destroy jobs, careers, communities and more.

Management and employees at companies that are unable to create wealth make profits by “redistribution of wealth” and are therefore tempted to steal and mislead leading to the debacle we have on Wall Street.

I have been doing business, mentoring, motivational speaking and giving lectures, seminars on the subject of the Creation of New Wealth for a vey long time.  Those who have followed my principles have been very successful.  They have created new wealth.  When they tell me their success stories and I see their faces light up with happiness and their eyes are watering, it gives me more happiness then all the money I have earned in my life.

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