How to find your Sweet Economic Spot

This diagram is very useful for helping you to find your "sweet economic spot," that is, the special space where you are uniquely qualified to CREATE VALUE and where, in return, you get paid very well for it.

First, understand that money comes from value, and value comes from client needs. Client needs are represented by the green circle.

Next, realize that value is created where your capabilities intersect or overlap with the client's need. It is just amazing how many entrepreneurs go into business without knowing clearly what client need they are serving!

Lastly, understand that in a capitalistic, free-market system, lethal and relentless competition is the norm and indeed the only constant. Competition here is represented by the purple circle.

As can be logically expected, competitors will try to encroach upon your "economic sweet spot" zone.

I should point out that this analysis is not just for business organizations. In today's economy, every person -- from the receptionist to the CEO -- is in business for himself/herself.

Therefore, we all have to carefully define the client need we are fulfilling, and we also have to carefully monitor our competitors and their evolving offerings.