The Value Creator's Advantage: Why The 5 Parts of Every Business Will Determine Your Future

For over 40 years, I was surrounded by employee-mindset individuals.

Some were very successful, but many were not.

Over the last 15 years, I've began surrounding myself with business owners and entrepreneurs.

Again, only some are very successful.

The common thread among those who truly succeed?

How much value they create for others.

Whether you're an employee or entrepreneur, one factor separates those who succeed long-term from those who struggle:

Their ability to CREATE value, not just fulfill it.

This distinction will become increasingly critical as we enter an era of unprecedented change—one that promises to create more upheaval than even the Industrial Revolution or the Digital Revolution.​

The framework that has helped me understand and navigate this reality comes from Josh Kaufman's brilliant book in "The Personal MBA," specifically his breakdown of the 5 Parts to Every Business.

Understanding these parts isn't just useful for entrepreneurs—it's essential for anyone who wants to survive, thrive, and succeed in the new economy.

The Hard Lesson: From Job Fulfillment to Value Creation

I learned the lesson the hard way by getting fired for doing my job but not necessarily making my boss' life easier, better, and happier.

That moment was a brutal but invaluable education in the difference between task completion and value creation.

For years, I had operated under the assumption that doing my job well meant completing my assigned tasks efficiently and correctly.

I showed up on time, followed procedures, met deadlines, and checked all the boxes.

By traditional measures, I was a good employee. But I was missing the fundamental truth that would later transform my career:

Your job isn't to do your job—your job is to create value.

The Employee Mindset vs. The Value Creator Mindset

Employee Mindset:

• Focus on completing assigned tasks
• Success measured by adherence to procedures
• Reactive approach to problems
• Waiting for direction and instruction
• Trading time for money
• Viewing work as separate from personal growth

Value Creator Mindset:

• Focus on solving problems and improving outcomes
• Success measured by impact and results
• Proactive approach to identifying opportunities
• Taking initiative to improve processes
• Trading value for compensation
• Viewing work as a vehicle for learning and contribution

Once I learned that lesson, work became so much easier.

When you shift from task completion to value creation, everything changes.

You stop asking "What am I supposed to do?" and start asking "What problems can I solve?"

You stop waiting for direction and start anticipating needs.

You stop being a cost center and start being a profit center.

The 5 Parts of Every Business: The Universal Framework

​Josh Kaufman's framework identifies five essential parts that every business must master:

1. Value Creation: Discovering what people need or want, then creating it
2. Marketing: Attracting attention and building demand for what you've created
3. Sales: Turning prospective customers into paying customers
4. Value Delivery: Giving your customers what you've promised
5. Finance: Bringing in enough money to keep going and make your effort worthwhile

Understanding these five parts isn't just useful for entrepreneurs—it's essential for anyone who wants to create value in any context, whether as an employee, freelancer, or business owner.

Part 1: Value Creation - The Foundation of Everything

Value Creation is the act of discovering what people need or want, then creating it.

This is where everything begins.

Without value creation, you have nothing to market, sell, or deliver.

Types of Value

Kaufman identifies twelve forms of value that businesses can create:

Product Values:

• Product - Create a tangible item
• Service - Provide help or assistance
• Shared Resource - Create a durable asset that can be used by many people
• Subscription - Provide ongoing value over time

Service Values:

• Resale - Acquire an asset from a wholesaler, then sell it to a retail customer
• Lease - Acquire an asset, then allow another person to use it for a fee
• Agency - Market and sell an asset you don't own on behalf of a third party
• Audience Aggregation - Get attention from a group of people with certain characteristics

Financial Values:

• Loan - Lend money, then collect payments over time
• Option - Provide the ability to take a specific action for a limited period
• Insurance - Take on risk from another party in exchange for a fee
• Capital - Purchase an ownership stake in a business

Value Creation as an Employee

Even as an employee, understanding value creation transforms how you approach your role:

Traditional Employee Approach:

• Complete assigned tasks
• Follow established procedures
• Meet minimum requirements
• Focus on personal productivity

Value-Creating Employee Approach:

• Identify problems that cost the company time or money
• Develop solutions that improve efficiency or effectiveness
• Anticipate needs before they become urgent
• Focus on organizational outcomes

The employees who get promoted, receive raises, and become indispensable are those who consistently create value beyond their job description.

Part 2: Marketing - Attracting Attention and Building Demand

Marketing is attracting attention and building demand for what you've created.

Whether you're an employee or entrepreneur, you're always marketing something—your ideas, your services, your solutions, or yourself.

The Marketing Fundamentals

A simple acronym for marketing is AIDA, but we don't mean the opera by the same name, instead:

• Attention: Getting people to notice what you have to offer
• Interest: Keeping their attention long enough to communicate value
• Desire: Helping them want what you're offering
• Action: Motivating them to take the next step

Internal Marketing as an Employee

As an employee, you're constantly marketing to internal stakeholders:

To Your Boss:

• Marketing your reliability and problem-solving ability
• Communicating the value of your contributions
• Building demand for your involvement in important projects

To Your Peers:

• Marketing your expertise and willingness to collaborate
• Building your internal reputation and influence
• Creating demand for your participation in cross-functional initiatives

To Your Team:

• Marketing your leadership and mentorship capabilities
• Building loyalty and commitment through value delivery
• Creating demand for your guidance and support

Part 3: Sales - Turning Prospects into Customers

Sales is turning prospective customers into paying customers.

This involves understanding needs, presenting solutions, and facilitating decisions.

The Sales Process

1. Prospecting: Identifying potential customers
2. Qualifying: Determining if they're a good fit
3. Presenting: Showing how your offer meets their needs
4. Handling Objections: Addressing concerns and resistance
5. Closing: Facilitating the decision to buy
6. Follow-up: Ensuring satisfaction and identifying future opportunities

Internal Sales as an Employee

Employees are constantly "selling" internally:

Selling Ideas:

• Presenting proposals for process improvements
• Advocating for resource allocation
• Convincing stakeholders to adopt new approaches

Selling Yourself:

• Interviewing for promotions or new roles
• Negotiating for raises or better conditions
• Building coalitions for initiatives you care about

The employees who excel at internal sales are those who understand their audience, frame benefits clearly, and make it easy for decision-makers to say yes.

Part 4: Value Delivery - Giving Customers What You Promised

Value Delivery is giving your customers what you've promised.

This is where trust is built or broken, where relationships are strengthened or destroyed.

The Elements of Value Delivery

• Quality: Meeting or exceeding expectations for what you deliver
• Reliability: Consistently delivering on promises
• Speed: Delivering within expected timeframes
• Service: Providing support and assistance throughout the process
• Flexibility: Adapting to changing needs and circumstances

Value Delivery as an Employee

For employees, value delivery manifests in:

Project Execution:

• Delivering results on time and within budget
• Exceeding quality expectations
• Communicating proactively about progress and challenges

Relationship Management:

• Being responsive to internal customers
• Anticipating needs and preparing solutions
• Following through on commitments consistently

Continuous Improvement:

• Learning from feedback and mistakes
• Refining processes to deliver better results
• Sharing knowledge to improve team performance

Part 5: Finance - Making It Sustainable

Finance is bringing in enough money to keep going and make your effort worthwhile.

This includes understanding revenue, costs, profit, and cash flow.

Key Financial Concepts

• Revenue: Money coming into the business
• Costs: Money going out of the business
• Profit: Revenue minus costs
• Cash Flow: The timing of money moving in and out
• Return on Investment (ROI): The relationship between investment and return

Financial Literacy for Employees

Understanding finance makes you a more valuable employee:

Cost Consciousness:

• Understanding how your role affects company profitability
• Identifying opportunities to reduce costs without sacrificing quality
• Making decisions that consider financial impact

Revenue Awareness:

• Understanding how your work contributes to revenue generation
• Identifying opportunities to increase value to customers
• Thinking like an owner about business outcomes

The Transition: From Employee to Entrepreneur

Practicing these skills as an employee also made it an easier transition to start working for myself, earning over $30k as a coach with my first 2 clients, because I knew The 5 Parts To Every Business and how to create value.

Understanding the five parts of business provides a roadmap for anyone considering entrepreneurship.

Instead of guessing or hoping, you can systematically build each component:

Your Business Roadmap

Value Creation: Identify what you love doing and are good at that by sharing it will make other people lives' easier, better and happier.

Marketing: Share insights through writing and speaking, building attention and credibility

Sales: Hold conversations with potential clients to understand their needs and present your offer as a solution

Value Delivery: Provide your offer, making sure they receive more value than the perceived cost, collecting case-studies, testimonials and real world experience

Finance: Price your services appropriately and manage costs to ensure profitability

The success came not from luck or connections, but from systematically applying proven business principles.

The Future of Work: Why This Matters More Than Ever

In this new world where businesses and employment will go through a bigger upheaval than even the Industrial Revolution or the Digital Revolution, if you want to be able to survive, thrive, and succeed, you will need to learn The 5 Parts To Every Business and most of all how to create value.

The Coming Disruption

Several forces are converging to create unprecedented change:

• Artificial Intelligence: Automating routine tasks and changing the nature of work
• Remote Work: Enabling global talent competition and new organizational structures
• Gig Economy: Creating more flexible but less secure employment arrangements
• Economic Uncertainty: Requiring greater adaptability and resilience

The Value Creator's Advantage

In this environment, those who understand value creation will have significant advantages:

• Adaptability: Understanding all parts of business makes you more flexible and valuable
• Security: Value creators are harder to replace and more likely to find opportunities
• Options: You can succeed as an employee, freelancer, or entrepreneur
• Resilience: Multiple skills and perspectives provide multiple income streams

Practical Application: Developing Your Value Creation Skills

For Current Employees

Audit Your Current Role:

• What value are you currently creating?
• How does your work contribute to each of the five business parts?
• Where are the gaps in your understanding or contribution?

Expand Your Impact:

• Identify problems that cost your organization time or money
• Develop solutions that address multiple business parts
• Volunteer for cross-functional projects to gain broader perspective

Build Business Literacy:

• Learn about your company's business model and strategy
• Understand how your industry works and where it's heading
• Develop skills in areas outside your current expertise

For Aspiring Entrepreneurs

Start with Value Creation:

• Identify real problems people will pay to solve
• Test your ideas with potential customers before building
• Focus on creating something people want, not just something you can make

Build All Five Parts:

• Don't just focus on your product or service
• Develop skills in marketing, sales, and finance
• Start practicing these skills while still employed

Learn by Doing:

• Start a side project to test your understanding
• Work with other entrepreneurs to see how they operate
• Read case studies of successful and failed businesses

The Multiplier Effect: How Value Creation Compounds

Understanding and applying the five parts of business creates a multiplier effect in your career:

Short-term Benefits (6-18 months)

• Increased recognition and visibility at work
• More interesting projects and responsibilities
• Stronger relationships with colleagues and management
• Greater job security and confidence

Medium-term Benefits (1-5 years)

• Promotions and salary increases
• Opportunities to lead teams and initiatives
• Industry recognition and professional development
• Options for career changes or entrepreneurship

Long-term Benefits (5+ years)

• Financial independence and security
• Ability to create opportunities rather than wait for them
• Platform to influence and mentor others
• Legacy of meaningful contribution and impact

Common Mistakes and How to Avoid Them

Mistake #1: Focusing Only on One Part

Many people excel in one area—perhaps they're great at creating products or delivering service—but neglect the other parts.

This creates vulnerability and limits growth.

Solution: Develop basic competency in all five parts, then deepen your expertise in areas that align with your strengths and interests.

Mistake #2: Creating Value Nobody Wants

Sometimes people create impressive solutions to problems that don't really matter to anyone. They mistake complexity or cleverness for value.

Solution: Always start with customer needs and validate demand before investing heavily in creation.

Mistake #3: Poor Execution in Delivery

Great ideas poorly executed are worthless. Many people underestimate the importance of reliable, consistent value delivery.

Solution: Build systems and processes that ensure consistent quality and reliability. Under-promise and over-deliver.

Mistake #4: Ignoring the Financial Reality

Passion and good intentions don't pay the bills. Many people create valuable things but fail to make them financially sustainable.

Solution: Understand the economics of your value creation from the beginning. Price appropriately and manage costs carefully.

Building Your Action Plan

Assessment Phase (Month 1)

• Evaluate your current role through the lens of the five business parts
• Identify your strengths and gaps in each area
• Research your industry and organization's business model
• Set specific goals for expanding your value creation

Development Phase (Months 2-6)

• Choose one business part to focus on improving each month
• Seek out projects that allow you to practice new skills
• Build relationships with people in different functional areas
• Start a side project to test your entrepreneurial skills

Implementation Phase (Months 7-12)

• Apply your learning to create measurable value in your current role
• Document your contributions and their impact
• Seek feedback and adjust your approach based on results
• Make decisions about your career path based on what you've learned

Conclusion: The Value Creator's Future

The future belongs to value creators—those who understand that success isn't about following instructions or completing tasks, but about solving problems and improving outcomes for others.

Whether you're an employee looking to advance your career or an entrepreneur building a business, the principles remain the same.

The 5 Parts of Every Business provide a comprehensive framework for understanding how value flows through organizations and economies.

By developing competency in all five areas, you become more valuable, more adaptable, and more resilient in the face of change.

The economic disruption ahead will be severe, but it will also create unprecedented opportunities for those who are prepared.

The old model of trading time for money in exchange for security is breaking down.

The new model rewards those who can create value consistently, regardless of their official title or employment status.

My journey from getting fired for "just doing my job" to earning my first $30k as an entrepreneur wasn't magic—it was the application of learnable principles.

The same principles that can transform your career, whether you choose to apply them as an employee, freelancer, or business owner.

The question isn't whether you need to become a value creator—the question is whether you'll choose to start today or wait until the disruption forces your hand.

Those who start now will be the ones leading the new economy.

Those who wait will be struggling to catch up.

The choice is yours.

But remember: in the new economy, your job security doesn't come from your job title—it comes from your ability to create value.

Master that, and you'll not just survive the coming changes—you'll thrive because of them.