A startup’s value proposition should be at the forefront of the business. It is a statement from your startup to consumers underlining your products integral value. If done correctly it can be a highly effective sales tool, influencing purchasing behaviour and spotlighting your startup for success.
At Allied Legal we witness, first-hand, the errors startups make when developing their value proposition. Because the process should be relatively simple, we’ve demystified it for you.
But Wait, What is a Value Proposition?
A value proposition is a simple statement summarising the benefits of a startup’s product or service. It typically highlights the key reasons a consumer should purchase a startup’s offering and why. A startup’s value proposition should be visible and displayed on a startup’s homepage or throughout other consumer touch points.
A startup’s value proposition should comprise a statement that is easily understood rather than being overly ‘salesy’ or ‘jargony’. It should highlight the benefits of a startup’s offering without ‘hype words’ or superlatives like “best price in town!” or “never seen before!”
The Formula
Developing a value proposition can be simple. You will need to consider how your startup is unique, identify your target market and its needs, and then determine how you can best meet those needs. It can be further broken down into these simple steps:
- Headline: this is an attention grabbing statement which reels in your target market.
- Sub-Headline: think about your startup’s point of difference. What is unique about your product or service? Does your startup’s offering solve a particular problem? And why should consumers choose you over your competitors?
- The Follow Up: think about your target market. How can you meet their needs? List the core benefits of your startup, including your value adds whether it is free shipping or no sign up fee.
- The Close: reinforce your message by providing a snappy closing sentence which summarises who you are as a brand.
Your startup’s value proposition is an important foundation in defining and distinguishing your business. A good value proposition should set you apart from your competition, and motivate your clients to do business with you. With the right value proposition, your startup will be set up for success!
Need help? Contact us
Whether you’re having trouble creating a value proposition for your startup, or you’re thinking about taking your startup to the next level, we’re here to help. Give us a call on 03 8691 3111 or email us at hello@alliedlegal.com.au to talk all things startup.
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