When you own a business, there are many things that you have to think about. Daily operations may take a lot of your attention and focus, but it is often the back office things that can make the biggest impact and actually propel your business forward. Back office things refer to the structural parts of your business and the elements that help to identify your business. This includes a value proposition business statement.
Definition
A value proposition in business is a statement that explains what you are selling, who you are selling it to, why they should buy it from you and what benefit it offers them. This statement is basically a summary of what your business is all about. It touches on all the key points that you need to market your business and to attract customers. Every business needs to have one in order to be able to effectively bring in business.
How It Helps
When you have a value proposition, you are more in tuned with the goals of your business. You are better able to sell your products or services. You are more likely to be able to secure funding. This statement may seem small, but it actually is huge. It gives your business focus. It allows you to reach out to customers in a clear and concise manner.
How to Use It
Your statement can be used in many different ways. To get the most from it, you should create your value proposition right at the start. You will need it as you start to write your business plan and market your business. It will give you a focus that will enable you to better explain your business and create advertisements that are convincing.
A statement can be used to help you define your target market. Once you know this, you are better able to develop your products, sales methods and related things to get customers and make money.
It also helps you to define how you are different and why you are the only company that can service your customers. This is an important aspect to have a handle on. You have to be able to make people believe that you are the best and only source. Even if your product is sold by hundred of other businesses, you still must be able to convince customers why they need to buy it from you.
You can have multiple value propositions. You should consider one main one for your business as a whole, which you can use in your business plan. Then you can create one for each category of product or service you sell. They can be used to launch new products or whenever you have a change. They are great for focusing ideas and giving everyone a starting point for marketing, sales, customer service and every other aspect of your business.
You need to understand the importance of a value proposition in business. Whether you are writing one on paper or creating an online value proposition, you need to have one. It may surprise you just how valuable it can be.