As business owners, we tend to do or perform as best as we could with the tools given. When you start the entrepreneurial world, nobody gives you the keys to the end goal or the way to keep the “eyes on the prize”. In our Small Business Strategy series we will be talking about “Propostion”
What a Business Value Proposition is and why it is important
Your value proposition is the promise you give to customers that you will deliver something of value to them.
It’s a statement that explains:
(1) the benefit you offer; (2) who will benefit; and (3) why you are the best choice to deliver that benefit.
What Is a Value Proposition in Business Development?
As you develop your business, your value proposition defines both the purpose of your business and your relationship with your customers. It should be clear and concise.
To create an effective value proposition, you need to know and understand your target demographic. Ask yourself:
- Who are your customers?
- What do they care about?
- What problem do they have that you can solve?
- Why are you the best business to solve that problem?
- What benefit will customers gain from working with you?
Once you understand your customers’ needs and values, you’ll be able to create a value proposition that appeals to them.
How to determine your marketing value proposition?
- Establish the benefits of your product or service
- Communicate the value of these benefits
- Pinpoint a problem a consumer could be facing
- Relate the problem to the value provided by your product or service