Value proposition 101: What’s the point in your business?
So you’ve nailed down that big idea. Congrats! But hold up.. there’s something else.
It’s easy to get caught up when you’re running with an exciting idea, but in reality, the idea is just the beginning. The key to a successful business is building something that people actually want. So, if you haven’t already, it’s time to consider an all-important question: what is the point in your business? That’s to say, why would people want to buy or use your solution?
Putting time aside to answer this question will be invaluable for the future of your business as it will make up the foundations of your value proposition. A value proposition is a statement that identifies the benefits that a company’s products or services deliver to customers. If this all sounds familiar but you’re not sure where to start, we’ve put together some of our top tips to help you on your way.
Start by considering your ‘why’ - By understanding who you’re selling to and why they’d buy it, you are one step closer to ensuring your product or service is commercially viable. Take some time to answer these fundamental questions: What’s the point in your solution? Who’s it for? What makes it unique? What’s the ‘why’ behind your business?
Get out and speak to your target market - Compile as much information about the drivers, trends and dynamics of your target market. This is key to understanding why your potential customers would buy your product or service and how you can sell it to them. The best way to do this is to speak to these people. You’d be surprised how willing people are to discuss new ideas and solutions. Get out and speak to people, give them an opportunity to share their opinion on how you can make your solution better.
Understand the drivers for adopting your solution - For example, this might be financial (i.e. your product creates savings or additional revenue) or non-financial (consumers may want to switch to a more sustainable product).
Align your value proposition to what you’ve discovered customers want - Once you’ve discovered more about your target market and why they might buy your solution, you can respond to these aspects through your unique value proposition. For example, If dog owners want pet food that is nutritious, easy to store and low cost - your value proposition might be ‘long-lasting, tasty pet food that keeps your dog healthy’.
Summarise your value proposition in 1-2 sentences - Once you have a value proposition, you can use this to easily communicate why people should buy your product or solution and what’s special about it. Your value proposition should capture the key features of your product or solution.
If you’d like support nailing down your value proposition, check out our business support webinars.
Words by Arsha Branson
Arsha has 11 years experience in sustainability & climate tech, having worked with >130 climate tech startups and scaleups. She is currently Commercial Director at SV, working with government, corporates and consumers to make the transition to net zero a reality.