For any project that you are working on, there is a value curve. You put time and energy into the project, and you start to get a result. When you press on the gas in a vehicle, you begin to go faster. The harder you push on the gas, the quicker you will accelerate.
A value curve for your project starts to level off at some point. When you begin, you can put a little bit of money into your website, and it will improve dramatically. At a certain point, even if you pay more money, your website isn’t going to get that much better.
There are three things that you must think of when you are thinking about your value curve:
- How do you define the value on your value curve?
- Will your value curve continues to increase no with every dollar or hour that you put in?
- What level of value do you want from your value curve? At what point do you stop going for improvement in this project result?
How do you define the value curve?
You have to decide what you consider value in a project. Ideally, you will choose something measurable. Is it the number of visits to a website? Or the number of people who sign up for a membership? Or it could be the number of comments or awards that you receive. You must define what is most valuable in your project before you begin.
Will Your Value Curve Increase Constantly?
Sometimes your value curve will increase linearly with the resources you invest. If you are building a road, the more money you put in, the more kilometres you can pave. If you are paying for ads to drive people to your site, it may be that buying more ads may drive a consistent percentage of people to your site. A linear value curve is easy to think about and a treasure to have. As long as you put in more resources, you get more benefits.
What Level Of Value Is Enough?
If you have clearly defined what you measure when you talk about value, you can decide:
- What level of value is enough or
- The total amount of resources you want to spend
In either case, you must be disciplined enough to stop at the point you said you would. When you spend the resources you have committed, you cannot say, “Just a little more.” And you must not say the same thing when you hit your target value. Stop at the point you previously committed.
Your Project’s Value Curve
Understanding your current value curve is essential when you must start to change the trajectory of how you achieve results on your project.