The following was originally published in Franchise Opportunity: Making the Right Decision by Dennis Schooley.

Every Franchise system should have a clear understanding of the following concepts. In addition, they should have a clear marketing strategy to help their Franchisees communicate to customers and prospects about how they will deliver these currencies as they operate their Franchise.

Trade.

Give something to get something. Our inhabited globe has come a long way since the act of trade meant, “I’ll give you one caribou if you give me three baskets of carrots and a cord of wood”. However, that same basic tenet still drives all economic transactions. Value for value is the test. If we can create more value, then we can get more value back when we auction ours. The only difficulty is the definition of value is ever-changing. Therefore, it would make sense that if we can figure out who defines value, we will be able to create and deliver more of it.

Remember from the discussion about basic business concepts that it’s all about the customer. If we accept that it’s all about the customer, then it follows that the customer is the beast that defines value. Seems simple. Seems basic. Seems unchallengeable.

OK, so how do we figure out what the customer defines as value? We need to find ways to ask those we choose to serve. We need to ask them to define what they find most valuable. We also need to accept the definition of today will not be the same definition of tomorrow. At some point, somebody figured out the customer wanted a fatter caribou, and if a fatter caribou was delivered, then four baskets of carrots and some extra wood could be obtained. They probably asked the carrot guy.

Study of business customers in today’s world will reveal there are some basic currencies of trade that hold value for the customer. Understanding these basic currencies will help to define the specific methods and characteristics required of the product or service you provide to meet the value definition of your customer.

Money.

This is the most accepted version of currency in most people’s minds. In fact, money is used in our common language synonymously with currency. I propose it is only one currency, albeit the one we trade with most often in commercial transactions. Although in today’s marketplace, plastic represents actual money.

In reality, it’s just the bridge between the caribou and the carrots. I mean, surely people don’t really want a stack of paper. No, they want the carrots if they’ve already got caribou. Our forefathers have simply been able to structure a system where the paper can be traded for stuff, and stuff can be traded for paper – and we’re all willing to abide by this trading system. Even if the actual paper is disappearing, the concept is the same.

A dressmaker is willing to trade one of his dresses for some paper. The landlord is willing to rent part of her space to the dressmaker to display dresses in return for some of his paper. The grocer will accept the landlord’s paper for some carrots – no caribou required.

We all get this one. If we know one of the currencies that businesses desire is money, then our products and services must be able to help our customers gain more money. It seems simple but I’m not sure we have that goal firmly in mind when we illustrate our wares.

However, just like the system of trading stuff for paper is simple, so is this concept: We need to show our customers how they can gain more money by doing business with us. The better we can communicate that message, the more attractive our goods and services will be.

Time.

Any desired commodity – currency in the case of this discussion – increases in value as it increases in scarcity. Although we were all hoodwinked into believing the computer revolution of the 1980s was going to make us so efficient we would have gobs of time on our hands, I don’t think there are too many converts to that ascribed belief any longer.

When we discuss our clients’ need for more time in their respective businesses during our training class for new Schooley Mitchell Franchisees, I always relate the following story:

The scene was at a National Franchise Convention, waiting for the kick-off speaker to begin the proceedings. There were several hundred Franchisors sitting in the convention hall, when a guy entered from the back of the room flipping a head of lettuce up and down. He walked right up the middle aisle continually flipping the leafy orb. There were a few snickers because it was apparent to some that an inmate had gone over the wall at the local asylum.

With a determined look and a single purpose in mind, this guy trotted right up to the front of the room, climbed onto the stage, and leapt behind the podium. Delivering a greatly threatening look, he bellowed, “Somebody in this room tell me why this head of lettuce represents the most important concept that you must understand for your business to survive in the next decade!” He was completely fired up, spittle was flying, and he was turning red. At this point, half the room was convinced of the asylum scenario, while the other half realized this was actually the guest speaker.

Gliding down a bit from his commando high, he said, “OK, I want to ask you a couple of questions. I want you to think back 10 years, picture in your mind your local grocery store, and tell me how many square feet were dedicated to heads of lettuce at 79 cents each.” After a bit of a pregnant pause, someone in the audience yelled out, “Thirty square feet.”

Our now calm and seemingly rational speaker asked, “OK, we can accept that answer. So now flash forward 10 years to today and somebody tell me how many square feet are dedicated to heads of lettuce in today’s grocery store at 89 cents.” The answer came back as 10 square feet.

The next question was, “Now somebody tell me how many square feet are dedicated to prepared salads at $4.95 each.” The revelation was clear. Yes, that’s where the other 20 square feet went – in fact, the current stores may even use more than 20 feet! Many have entire aisles or departments. The crowd was elated they had solved the riddle.

Then, in a very quiet, almost ominous tone, he asked, “So what is that about and why does it matter so much to your business?”

His message was of course that it was about time. We are willing to pay good money – already conceded to be a valuable currency – to save ourselves time. We are willing to pay a premium to avoid cutting carrots and cucumbers, and in my mind, I plead guilty to the act.

He said, “Time is the currency of today’s economy, and you need to figure out how you are delivering time to your customers or you will not thrive.”

The story hit hard, made a strong and valid point. I have been thoroughly convinced of the importance of time as a currency of trade ever since. The challenge, of course, is to figure out how to deliver time to our customers. Before we can do that, we must ensure our customers understand that we will, in fact, help them to gain time through our wares.

Money and time are the most recognizable and widely accepted of the currencies of trade; however, it is my belief we also trade in security, knowledge and prestige. Most people trade for prestige as well. Otherwise, why would we wear what we wear, drive what we drive, live where we live? However, I think prestige is more of a personal currency, so I won’t go any further with that concept.

Security.

While security includes the locks on the door, the fence around the property and the guards at the gates, it is a much broader definition of security that belongs in this discussion. We all need to know we are making the correct decisions, particularly about important business issues. We need the security that our decision-making process has a high likelihood of leading us to the right choices.

The business owner who thinks they know everything has a fool running their company. That’s why we pay accountants to do our taxes instead of trying to stay on top of that changing set of laws. Most businesses would rather pay to have that done for them and feel secure the laws are abided by to prevent trouble down the road.

Sometimes we are left on our own to make our decisions about business subjects, and in many cases, that’s fine. That’s why people get into business in the first place, so they can make their own decisions. However, the more complex the issue, or the more alternative choices there are, then people pine for the security of knowing they are choosing wisely. Whether that’s buying the right manufacturing input, the right technology or the right employee – that’s right, that’s just a purchase like any other, albeit a very important one.

This currency can be described as reliability as well. Do I have reliable information to help me make optimum choices? Am I secure in my decision-making process? Is it the right price? Is it the right vendor? Is the right thing?

The more a business can provide security to others regarding their decision-making, the more valuable they are as a vendor to that business. It’s a currency that businesspeople need and want. That’s why they will trade the currency of money to obtain it.

Knowledge.

Currently, we exist in a knowledge-based economy. My personal belief is that we will see an increase in brain size over the next several dozen generations, maybe sooner. The Neanderthal brain we still carry around just won’t cut it in the future.

There was one point in the history of man where there was an increase in brain size, but for the most part we still have the brain of the guy that was lunch for the sabre-tooth tiger.

It is difficult to fathom but if a person were to read the New York Times cover-to-cover today, they would have more knowledge than a person would have in their lifetime in Medieval times. That’s only a few hundred years ago.

Yes, knowledge is growing exponentially. And that’s the knowledge we contain ourselves in our “reptile brain” as Dean Burnett calls it his book, The Idiot Brain. Then there are all these machines and devices that surround us and provide us with even more access to information.

There are currently more devices on Earth than people, and that phenomenon of man losing Earth-space – and maybe mind-space – to machine is growing exponentially. That’s not even considering Artificial Intelligence (AI).

The point of all this discussion is to make clear that we crave knowledge, and it is a very important currency in today’s world. It always was but is just now more clearly defined and polished. The more relevant knowledge we can provide, the more valuable we become. The more knowledge we acquire, the more likely we will earn more money, time and security.

The basic concept is this: Everyone designs their business to get customers, keep them, satisfy them and grow with them. If I would like to get more customers, I need to be able to show my prospects how I can get them the things they want – money, time, security and knowledge. It’s the same with each purpose.

When evaluating a Franchise system, consider its ability to deliver those currencies to a potential base of customers to determine success. Determining that will help you make a good decision.

This discussion relates to Franchises that deliver services and products to other businesses. These are the currencies of business. Unadulterated pleasure is the currency delivered with a cinnamon bun and that’s a whole different discussion. In that space, there are thousands of businesses vying for that disposable dollar. It’s a fickle decision-making audience.