The Purpose of Business

Businesses exist to create value. That's their sole purpose. As soon as they no longer create enough value, they no longer exist.

** Time is Money ** is backwards. It should be Money is Time. Or rather, money is a subset of time.

Money represents value. Money means nothing unless most everyone agrees it holds value. Time is time even if you don't agree that it is. Does money mean more than time to you right now or less?

Every business can be boiled down to the following equation:

______________ company spends the resources to create ______________ so that their customers don't have to spend the resources to create ______________ .

Apple spends the resources to create computing devices so that their customers don't have to take the time, effort, and energy to create the same computing devices.

Tesla spends the resources to create automotive vehicles so that their customers don't have to take the time, effort, and energy to create their own automotive vehicles.

Who decides the value? It's customers as a whole and not the single customer. The tribe is always bigger than the person.

The key to creating a business is to find a tribe and bring them more and more value. Spend the resources, likely a lot of time, figuring out how to best give them value. Do it again and again and you'll have a business. Sometimes they'll even ask for the value to be created by you.

The Purpose of Business is to create value.