You’ve been told that you need to create a Unique Value Proposition. What that means is you need to find the unique thing about your business that makes it truly worth building.
The issue is that most entrepreneurs, and most people with ideas, think that the uniqueness of the value proposition is the only place that you should innovate. And it’s just not true. You could innovate in pricing. You could innovate in your cost structures. You could innovate in your marketing channels. You can innovate in your customer segments. There are lots of places that you can innovate.
In fact, the more innovation you put into your business model, the more disruptive it’s going to be. So the UVP (the unique value proposition) is at the end of the day, the sum-total of all innovations in your business. It’s what makes the business worthwhile to you, and to your customer.
So try to define a one sentence Unique Value Proposition. Some people call it the ‘elevator pitch’ but we just like to call it the part of the business plan that has the most clarity. Take some time. It’s not easy and do it last. Like they say when you’re writing a great article in publishing you write the title last.
Describe your product
The Unique Value Proposition (UVP) should be a single clear compelling message that captures the essence of your product and the solutions it offers your target audience with respect to the problems you are trying to solve.
A UVP should:
1. Be easy to understand in about five seconds.
2. Communicate the benefit a customer receives from using your products and/or services.
3. Explain how your offering is different from and better than competitors’.
Careful! A UVP is not a slogan. Melts in your mouth not in your hand (M&M), Just Do It (Nike), Belong Anywhere (Airbnb) — these are slogans, not Value Propositions. Don’t be unique for the sake of being unique. Adding a quirky flaw (a specific colored product, a cookie with every purchase!) to differentiate your company is useless. If you want to stand out in your field, your company must have something notable that sets it apart. Avoid hype (never seen before amazing miracle product!), superlatives (best, most-powerful!) and jargon (value-added interactions and top-notch assets) when writing your UVP.