One of the most important concepts to understand as you’re marketing your business is your value proposition.
Imagine you’re visiting the in-laws in a small town a few states away. During your stay, your wife insists you get a haircut before she drags you to yet another family function. Since you left your barber back at home, you’re now tasked with finding someone in this unfamiliar town competent enough to give your scalp blanket a standard No. 3 trim.
You need a cup of coffee anyway, so you stop by the diner and ask the row of men sitting at the counter where you should go. Every man has the same answer: Louisa’s Barber Shop.
Is it because Louisa’s has the cheapest prices? Is it because she does the best work? Or is it because she lets you sit on an actual Clydesdale and drink Budweiser while she gives you a trim? We don’t know — we’re not there.
What we do know is that for every man in that greasy spoon to recommend Louisa’s Barber Shop, there has to be something very, very special about that place.
And that’s what we call a value proposition.
Your Value Proposition Sets You Apart
Every small business has competition. You are not the only one who sells handcrafted leather belts, restores antique furniture or offers a revolutionary software solution. So, why should people choose your small business over all the others?
Because of your value proposition — whatever it might be!
Your value proposition tells potential customers what you offer that your competition doesn’t. Free shipping. Same-day delivery. In-home setup. No annual fees. Free puppies with every order.
All of these are reasons someone might choose your small business over the competition.
How to Create a Value Proposition
First, we need to talk a little bit about what a value proposition is not.
It’s not a slogan. It’s not a tagline. It’s not a catchphrase. “I’m lovin’ it,” “Got milk?” and “Pizza pizza!” are not value propositions.
It’s a deliverable.
Now that that’s clear, here’s how to create a great value proposition.
- Start with a clear, concise sentence. Be very direct about who you are and what you do. For instance, Mischa Communications’ value proposition states, “We are an eccentric band of marketing innovators with a deep understanding of the financial and cybersecurity industries.”
- Identify a couple of your target market’s needs, pain points or challenges, and show how you can help. Again, from our own value proposition: “We don’t just tell your firm’s story; we sell it. We shout it from the digital rooftops. We fight for your ideas, broadcast them to clients, reveal your individuality, and adapt your company’s narrative to match your ever-evolving industry.” (Note: Stats, facts and figures are also more than welcome at this stage of the proposition. Numbers equal power.)
- Show a clear benefit. “With Mischa Communications, you have access to the marketing and communications expertise you need to engage your audience, build your brand and become a thought leader in your industry.”
Your value proposition isn’t going to be a whole conversation; it’s meant to be an elevator pitch — a scripted response to the question “Who are you and what do you do?” The conversation comes after you’ve hooked them with your proposition.
This is just the meat — the sides, wine and cheesecake come later.
What’s Your Small Business’s Value Proposition?
A good value proposition is what got you sitting on Miss Louisa’s Clydesdale while she stood on a step stool and trimmed your hair. And if you do it correctly, it’s what will have customers flocking to your small business, too!
Need help telling your audience why you’re the best small business for the job? Mischa Communications has just the right words. Let’s talk!