Recently, I got together with some friends who are thinking about starting a business. We were discussing their plans and the opportunities. There appeared to be a lot of opportunity, but what I came to realize as we were talking is that they hadn’t yet determined their value proposition.
My immediate reaction was to have them stop everything <screeching car tires> and go no further until they had defined their businesses’ value.
Why?
1. Competition
Let’s face it, at this point, any chosen market is full. There is likely to be someone, somewhere, doing what you are thinking about doing, or something very similar. Maybe not as well, maybe not as creatively, maybe not as passionately – but someone out there has a business like yours.
You must clearly define how you are different than those people – how are you better?
2. Clarity
How are you going to be able to communicate what your business is to others, if you aren’t entirely sure, yourself. A value proposition gives you the chance to develop your pitch and figure out how to answer the following questions, when asked:
- What do you do?
- Why do you do it?
- Why are you the best?
- Why do businesses need you?
in a short, concise, engaging way.
3. Maximizing Marketing’s Impact
If you can clearly communicate what you do, all of your messaging becomes more effective. If your businesses’ value is understood across the entire team, your content becomes better, keywords are easier to identify, your site is easier to understand, and your audience has an easier time finding you and you have easier time converting them.
4. Goal Setting
Finally, the success of your business can’t be measured if goals aren’t set. Defining your value helps to clarify your business goals and goals determine your KPIs and KPIs indicate your level of success.
Where to Start
Start by answering questions that define the four components of a solid value proposition. Define why you are Unique, Solution Providers, Experts and Satisfiers.
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