Get connected, you’re done if you don’t!

Hi all,

Wow, what a great holiday break. Lots of good company, good food and that lovely red stuff to drink. I hope that you are as refreshed as I am.

How many of you have a strong value proposition?

I don’t see many in all the plans I read. It’s as if most entrepreneurs have not heard of a value proposition!

If you want the money then you’ll need to have this one nailed.

First, read this book, ‘Smartups’ written by Rob Ryan, a serial entrepreneur. Great section on value propositions. www.entrepreneur-america.com

So, why have a value proposition?

A good value proposition will clearly spell out why people will buy your product or service. It tells us why you are different from your competitors. It should be short and sweet. That’s an art in itself. No matter how complex the technology, if you can’t tell me the value proposition in a minute then you’re not trying hard enough.

The 4 key elements of good value propositions:

-well defined business opportunity

-a benefit or value that’s measurable in dollars

-a favourable price/benefit ratio

-a short payback period.

You will need to dig to get some of this and that’s often the reason it’s not done. But investors love it. They ‘ll know how much work you put into your value proposition. That will give you brownie points.

Talk about how much the customer will save every month/year with your product. Find a way to turn the benefits into a $$$$ value. It may not be easy, you may need to make assumptions but just do it.

Your value proposition then becomes part of your marketing message. It is what customers want to hear. It gives them the reasons to buy your product and not the competition.

It’s the start of a new year. Have a go at your value proposition.

Till next time.

Cheers