📖Reading: Start Planning Strategically

📖Reading: Tips for Your Business to Stand Apart

📖Reading: Branding Insights (Blog)

📖Reading: Differentiation Strategies (Blog)

Watch videos 11-14 in the section below to learn how differentiate and make your business stand apart from the competition.

📖Reading: How To Create a Value Proposition (PDF)

Watch videos 15-16 in the section below to identify what makes your business unique (Unique/Customer Value Proposition).

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Watch videos 11-14 in the section below to learn how to position your business for success.

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Watch video 16 in the section below to discover how to turn what you already have into new value and business growth.

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📖Reading: How to Escape From the Commodity Trap?

Watch video 11 in the section below to learn more about the commodity trap.

▶️ Video

Watch videos 10-11 in the section below to learn how escape the commodity trap.

🧠Exercise: Helping Yolanda: Case Study

🧠 Case Study Solution

A business is more than the products and services that it sells. When you define the essence of a business, you are talking about its unique value proposition. Customers are trying to solve a problem or address a need. So, the heart and soul of your business is concerned with what you are doing for a customer, how you are making their life better; or, if you are selling to a business (B-to-B), how you are making the business better. Ventures make money based on how much value they create for customers. So, the question becomes “what is unique about the value you are creating?”.

You are not selling products or services; you are selling benefits. An example is a company that cleans office buildings. Their services might include dusting, vacuuming, polishing, sweeping, sanitizing, and so forth—but the business owner will tell you that they “improve the productivity of your employees.” Virgin Airways is famous for recognizing that they are not in the transportation or airline industry, they are in the entertainment industry at 25,000 feet. Uber, the ride share business, defines its unique value proposition as “uber convenience—the smartest way to get around”. You don’t have to search out a taxi, wait a long time, explain where you are going, or deal with paying the driver.

Your unique value proposition centers on the question “what business are we really in.” It is important to define your business in terms of the customer benefits you are providing or needs you are addressing. A high-end shop that sells fancy desserts should not define themselves as a seller of cheese cake or lemon meringue pies. Instead, the entrepreneur might argue that “we sell indulgent experiences”. In this example, the entrepreneur understands that what the customer is really doing when they buy a dessert is to indulge themselves or treat themselves to something special that they deserve. Alternatively, think about CNN (Cable News Network), the 24-hour news channel. They have all kinds of programs that they offer, but their unique value proposition centers on “instant information, anytime, from anywhere”. They are keeping you informed by selling the immediacy of the information, or quick access to the latest breaking news.

Another way to approach your unique value proposition is to think about customer pain points. What is the pain you are relieving or difficulty you are removing with your products or services? How are you making someone better off? How can you connect the benefits you provide to a significant problem a customer has?

Keep in mind that we are talking about not just a value proposition, but your unique perspective on the value you are creating. The challenge is to look at your customers and your products differently than your competitors do. There might be a large number of cleaning companies, or transport companies, or event planners in your local market. But what do you understand about the customer that other businesses don’t get? Center your thinking on the customer—walk in their shoes, empathize with their problems and their needs. When they do business with you, what is in it for them?

When you formulate your unique value proposition, you are telling customers why you deserve their business more than your competitors deserve their business. Starbucks is more than a coffee shop—their value proposition does not mention coffee at all, but instead centers on “creating a culture of warmth and belonging, where everyone is welcome”.

You want to be clear, concise (not too many words), and explicit about what you do for the customer. For instance, HelloFresh provides prepared meals delivered to your front door. Their unique value proposition is simply “we make mealtime less stressful”.