My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Value Equation Lens
Evaluate all business decisions through the lens of how they impact the four value equation variables: dream outcome, perceived likelihood, time delay, and effort/sacrifice
Decision Rule
Any business change should improve at least one value equation component without significantly harming others. Prioritize changes that improve multiple components simultaneously
How It Works
Forces systematic thinking about customer value perception rather than internal business metrics, leading to decisions that increase willingness to pay
Failure Modes
Optimizing for internal metrics that don't improve customer value equation
Focusing on only one component while ignoring negative impacts on others
Misunderstanding what customers actually perceive as valuable outcomes
Example Decision
“Instead of adding more features (internal focus), add implementation service to reduce customer effort (value equation focus), allowing for premium pricing”
Related Knowledge
Price is determined by value equation optimization, not cost-plus margins
Businesses should focus on value engineering rather than cost reduction for profit growth
Value Equation Framework
A mathematical framework for maximizing offer value: (Dream Outcome × Perceived Likelihood of Achievement) ÷ (Time Delay
Transform existing offers to command premium pricing while increasing conversion rates
Doubling or tripling offer prices while maintaining or increasing close rates, leading to step-function business growth
Close more sales at higher prices using strategic bonus delivery instead of discounting
Higher close rates without discounting, maintaining profit margins while increasing customer satisfaction
dream outcome times perceive elective achievement below that you have time delay and then effort and
Mathematical formula for determining offer value based on four key customer perception variables
we can double the price or triple the price for offer and close at a higher percentage
Proper value equation optimization can dramatically increase both pricing and sales conversion rates