A framework for understanding how businesses create value I was looking at two companies last week. One was a manufacturing business that takes raw materials worth $1 million and transforms them into products the market values at $5 million. The other was a software company that invests $1 million in developer salaries and creates software valued at $10 million. Both are profitable. Both have solid business models. But one has double the value multiplication power of the othe

Why do some clients happily pay 10x more than others for the same service? It’s not always about what you deliver — it’s about who you're...