How to Create Your Value Proposition in 3 Easy Steps

Your value proposition, can easily be the core of what makes a business survive.  In order to write a value proposition, you have to create it.  In order to create it, you have to understand it.  So let’s explore what might be your value proposition, with an easy to follow, step by step guide.

On a side note, you don’t have to be actively writing a business plan to need this, this can also be considered your sales pitch depending on who you talk to.

1. Define Value Proposition – What Is It?

Let me start by asking this question, in a scenario all of you have experienced.  You get a spammy looking email from someone asking you to buy something.  Maybe it’s a teleseminar, or whatever.  But whatever it is, you’re not buying it.  Do you ever stop to think about why you’re not buying it?  (Besides the fact that this guy somehow got your email address, and it’s ticking you off).  It was likely because it wasn’t offering any value to you.  If it did, the value wasn’t made clear.  Basically, this business model was lacking a clear value proposition.

A value proposition is that something special you’re giving to a customer.  Think…what’s that trigger that makes me want to buy your product or service?  It’s value…what value are you offering someone?  What makes your value different then everyone else’s value?

2. Types of value propositions

Okay, so we know *kind of* what a value proposition is.  It’s still a little fuzzy probably, because I just told you to go to the grocery store and get something, but I didn’t tell you what type.  Now we need to figure out, are we buying fruit here, vegetables, what?  This is usually the missing step as entrepreneurs like us, we need to work backwards.

For this scenario, I’ve listed some value proposition examples here of the different types of value propositions you might have in your business.  You can read that article for more information, but here is a simple version of the most popular types:

  1. Added Value, Less Costs
  2. Convenience
  3. Customization
  4. Brand or Status
  5. Newness
Probably 99.9% of the time, your value proposition should fall into one of these categories.  Back to the grocery store example, we need to place it in a category.  Does your value proposition belong in the dairy isle, the bread isle?  If it doesn’t, well then…I guess let me know and we’ll add a new one.  But for now, let’s say these are the types of value propositions that we know work.
3. Craft the Value Proposition into a Statement
This value proposition statement is going to be difficult for me to define for you.  This is specific to your business, and hopefully it’s unique.  I have found one thing though that helps with this, and this is to have an outsider help you craft your type of value proposition, into a clear statement.  Business owners usually have an enormous amount of information swarming around in their heads about their business, it’s hard to separate themselves, and craft a statement.
Some things you might want to consider:
  • The ROI your clients average
  • The amount of money being saved
  • The added value
  • The solution to your customer problems
And as always, if we have anyone in our community reading this that would like to include their own tips to define and/or write a value proposition, please leave them below in the comments!

 

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