What is at stake?
The value proposition represents the value that a company brings to its stakeholders.
Why is it important?
An in-depth reflection on the value proposition is essential for startup founders who want to understand the perceived values for which consumers are willing to pay.
Incorporating considerations of responsibility from the MVP stage makes it easier to develop the startup's product or service with the aim of addressing the genuine long-term needs of customers, as well as those of society and the environment.
Three key steps to take
1️⃣ Identify the problems and aspirations of your target audience
Starting from the deep needs of your target audience allows you to construct a value proposition that is genuinely useful, rather than beginning with an idea and then figuring out how to sell it (the number one principle of the lean startup).
2️⃣ Build an MVP that addresses these problems by delivering maximum value to all stakeholders
- Find the simplest and non-scalable solution to address the problem quickly.
- Identify the needs of all stakeholders that arise from this solution.
- Iterate on this solution to make it increasingly relevant, scalable, and valuable to all identified stakeholders.
3️⃣ Formulate your value proposition concisely and test it with your target audience.
- What? What are you offering to your target audience and prospects?
- For whom? Who are your target consumers and what are they seeking?
- How does your offer distinguish itself from competitors? How does it provide comparatively more value to your customers and positively impact society and the environment?