Business & Finance

Capturing Value

There is a difference between creating value and capturing value. Many people and businesses create value but are unable to capture it adequately.

A business might be providing an exceptional service. But if customers aren’t paying, aren’t paying enough or it’s cost are too high, it may be unable to capture the value it’s creating through revenue or profits.

The airline business always comes up when this is discussed. Airlines create a lot of value for people by fulfilling trips. But many airlines are either loss making or have very slim profits: they are unable to capture an equivalent of the value they provide.

Value capture is key. But value must be created first before any talk of capture even surfaces. Sometimes, the value creation period may take a while depending on the context. Like the time it takes a seed to germinate.

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Babatunde Akin-Moses

I am currently CEO and co-founder of Sycamore, a peer to peer lending platform that connects lenders to borrowers using technology. I love to write about business, economy, policy, startups, inspiration and entertainment. I am also deeply passionate about making Nigeria and Africa as a whole, a much better place to thrive and prosper for all.

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