When creating a business from the ground up, there are quite a few different things that you must learn. There’s learning how to write a mission statement, how to write a vision statement, and creating an overall plan for your brand.
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One of the important first steps in creating a new business is to outline your business value proposition. But what is a business value proposition? And how can you create one for your own business?
Let’s take a look at how to outline and create your business value proposition.
What Is a Business Value Proposition?
Before we get to the outline, we need to discuss just what a business value proposition is.
Creating a business value prop is a part of learning how to create a brand identity. It states clearly to your customer why a potential client or customer should do business with you over any of your competitors.
It should show what your business has to offer your customers and persuade them to pick your company.
Why Is a Business Value Proposition Important?
Why would creating a unique value proposition be so important?
Without stating clearly for your audience what it is that you have to offer, they have no good reason to do business with you. It may be unclear to them what you can do for them and why your business is better than other companies that offer the same product or service.
A lack of a good value proposition statement is one of the main reasons why businesses fail, so it’s incredibly important that your value proposition is well-thought-out and enticing to your target audience.
What You Need to State in Your Business Value Proposition
What does your business value proposition need to entail?
Though value propositions are personal and unique to each business and their style of business storytelling, they all need to accomplish a few of the same things to be effective.
Define What It Is That Your Business Does
First, you need to define to your target audience in no uncertain terms what it is that your business model does.
Do you sell water bottles? Do you offer website designing services? Are you a one-woman clown show? This should be made very clear to your potential customer. You don’t want them to think “wow, that’s a clever statement, but what do they actually do?”
Keep in mind that be the better value propositions are only one or two sentences maximum.
Explain How Your Product Solves a Problem In Your Customer’s Life
Next, you’re going to need to explain to them why they need you and your business in their lives. Identify the problem that they have that makes their life more complicated. Let them know what you can do to make their life easier and give them an idea of what improvements your product or service can make in their life.
Persuade Your Customer to Choose You Over the Competition
Lastly, your powerful value proposition should place you far above your competition. Make it clear why your business is unique and superior to any of the other competition. Erase any doubt in their minds that they could find a better deal somewhere else.
Make them want to work for, enter a business collaboration, or buy from your company alone.
Other Tips for Making an Effective Value Proposition
Now that we went over the basic structure of what your business value proposition outline should look like, let’s get a bit more specific about how to make the best use of your own.
These are some tips to take your business value proposition from good to great.
Make Sure Your Value Proposition Is Easily Visible to Customers on Your Website, Social Media, Etc.
After spending so much time and energy crafting the perfect value proposition for your business, you want to make sure that you get as many eyes on it as possible.
Make sure that your business value proposition is highly visible. Everyone who sees your business name should be able to easily find your business value proposition.
A key marketing strategy is to make sure to put this proposition somewhere on the very front page of your website. You should also make sure it’s easy to find on your social media pages, marketing materials, business cards, everywhere that you want to gain reach to your target audience.
Your proposition should also be easily searchable. When people google the problems that they have, you want to be sure that you’re hitting those target words so that they are more likely to stumble upon your business.
Be Concise and Get Straight to the Point
As stated earlier, your business value proposition should be one or two sentences. We know that doesn’t seem like enough time to communicate what makes your business great, but your potential customers don’t have time to read a lengthy statement when they’re trying to understand what your business does.
Don’t use any jargon or flowery language. State a short, simple action item that your business does to make their life easier. You’re going to want to use as few words as possible.
Keep It Unique and On Brand
Most importantly, you want to make sure that you are always on-brand with your business. This is the statement that will be most people’s first impression of your company and you want to make that impression engaging.
Though it seems difficult to get creative with such a small word count, it can be done. If you identify and formulate your brand identity ahead of time, this value proposition is made much easier.
A Business Value Proposition Is Essential to Gaining New Customers
A business value proposition is more important than just about any other aspect of your business. It’s how you tell your customer what problem you and only you can solve for them, enticing them to become new customers of your business.
To get consultation on everything your new business needs from your business value proposition to brand identity to employee management, check out Maui Mastermind’s team of experts.