Scenario: You’re a bookkeeper, you’ve spent three months working on your business plan, getting the capital together, leasing out an office, getting a logo and stationery produced.
You have signed up at the local business chamber, networking group, even a referrals swap group. You’ve got your business cards, flyers sorted and you posted an advertisement in the local paper.
Your working very hard to build your business and get some clients coming in, but it seems as though very few want to hire you.
If you find yourself in this situation one of the first things you should learn is the importance of developing an effective value proposition.
What Is A Value Proposition?
Value propositions are what differentiates one business from another and you from your competition. In essence it encapsulates what satisfies a need, pain, or desire in your target market or potential client.
A value proposition that you develop will have your target markets needs taken into consideration for it to be appealing and compelling before customers or clients will take on your services. If your services or products answer a need, pain or offer solutions to nagging problems that they have you are halfway there.
These needs, or pain may be in the form of lack of money, lack of time, lack of skills or expertise, a need to feel good, look good, or be noticed.
What Makes An Effective Value Proposition?
A good value proposition:
- Targets only one or a few of your target markets pains, but does so very well.
- It focuses on unsatisfied needs or pains in the market place, thus closing gaps that exist in services or products your competitors may offer.
- I is embedded within a good business model
- It takes into account, how clients measure success.
- In at least one area it outperforms the competition.
- It is difficult for your competition to copy
Many business owners don’t get this right. They set up shop offering services or products that may or may not be in demand. These same services or products may or may not satisfy important painful issues that your potential clients are looking to solve.
Successful businesses research their target market, their needs, the painful issues that drive them to look for solutions, and how they can best place themselves to offer these solutions. If you have a value proposition that fits the needs and wants of your target client, at a price point they want which allows you to profit, and is delivered in a way they want, then you have a business.
When you have these things in place within your business and your marketing message speaks or resonates with your target market, then you’ll have no lack of business.