Value Proposition (I)

Value Proposition (I)

The value proposition is one of the most important things for all startups. It says exactly what you are offering and to who, it is the heart of your business model.

A great way to see if you have summarized your value proposition is to see if you can fill the sentence.

For (target customer) who are dissatisfied with (current alternative) our product provides which is unlike (product alternative).

Believe it or not it is harder than one could imagine at first to fill in that sentence and throughout this series of posts, we will try to see the steps for it.

Where should we start?

The answer is to find a burning need, something that people know that they need, something that will solve a problem.

Many times we focus too much on the features we want the product to have and we forget about the things that we are trying to solve, is it really a problem or is it just a nice to have?

Focus on trying to understand what is the actual problem that you are solving, speak to your customers (decide a first customer segment even if you have many) and try to validate the problem with them.

Be extremely careful not to force them into saying yes because people are nice than you might think and if they know that you are trying to make that they will try to give you a positive answer even if they don’t really have that problem.

Don’t ask them if they would like this solution or if they would be interested in having this kind or that kind of software and don’t ask them if they would be willing to pay for it because even if they say yes it might not mean anything.

Ask them about their daily lives, how they go about the process where your solution would be used, try to understand whether it would actually help them, whether they think that they need something for it.

To make sure that they are actually really interested try get them to make a compromise, ask them to refer you to someone or to give you their email to contact them , or if possible ask them to make a payment in advance.

If they say yes to any of them (specially the last one) you managed to validate the problem and might even have hit the jackpot.

Read the next article on the value proposition series

Want to read more articles on entrepreneurship and selfdevelopment? Click here and find more

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.