In one of our recent SCORE workshops, one of our attendees asked the question “What is value added?” Every business has something that they do or provide that makes them special. If you get the oil changed in you car, you get you car washed before you get back. Another provider may wash all the windows in the car on the inside as well as the outside of the car.

Some dealers give free car washes regularly if you bought the car from that dealer. For years, Sears has a lifetime guarantee on small hand tools and has had that policy for years. So long, in fact, that many tool competitors have adopted a similar policy. You can even ask others in your line of business “what sets them apart from the others in same business”. Ask people in other communities that are in the same business as you but the distance factor means you do not pose a threat to them as a competitor. You’ll be amazed at what you can learn in this manner.

You can also learn a great deal by being an observer of some of the “big boys” in town. You can even adopt some of their traits. Wal-Mart will use company personnel and their families in the advertising brochures. Watch how they stress the cyclical patterns of products of interest. Back to school specials, winter and summer specials, holidays specials. Note that they very seldom carry over any inventory after the pattern is over. They discount the merchandise and get rid of even at a loss because inventory takes up space and space costs money. This is an important element to freeing up cash in the normal cash flow pattern.

By studying how others operate, you will get an awareness of all sorts of little things that will add value to your services and profit to the business. You may even find a new avenue of business direction for you to take that will be value added to your primary operation.

Bob Schmitt is a counselor for Northern Illinois SCORE.