This is the first part of a series of articles reviewing the steps to build a superior value proposition for your business, products and services or your offers. This series of articles is designed for all types of business – offline and online. Some important part that I want to note here is that superior value proposition is the toll that we can use to increase our business potential energy. When I think much deeper into this tool I can say that probably this is one of the most important tools that can help in building our business. When startup business succeeds in building superior value proposition than this is the business that will survive on the market and probably be the market leader in the business field.
In this series of articles will be obtained following subtopics:
- Basics of superior value proposition – This Article
- How We Can Build Superior Value Proposition – Second Article
- Spreading The Word about Your Superior Value – Third Article
- What Is The Benefits from Building Superior Value Proposition – Fourth Article
Now its time to put all gears in the process to work for our business and increase and transform at the same time the business potential energy.
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Why Building Superior Value Proposition is So Important?
I will continue with my model of explanation with business potential energy. Business potential energy is energy that is stored into the business and that can be converted into kinetic energy that will bring increased profitability for the businesses. I have already mentioned about 10 crucial elements with great business potential energy. There I have extracted only one piece of the puzzles that have business potential energy. But, what is interesting here and that have a direct connection with a superior value proposition is two elements from that list: prices and cash. When you sell your products or services for larger prices that cover all of your costs and make a greater profit for you, then you will have a better cash flow. With cash, you can increase business potential energy on other business elements as knowledge, products and services, marketing, sales team and so on. If you don’t have cash your business potential energy will be at lower.
But, you cannot increase your prices before you build a superior value proposition about you as an entrepreneur, your business and your offer. I will talk about YOU, YOUR BUSINESS and YOUR PRODUCTS AND SERVICESS as an element that can build a superior value proposition. Superior value proposition is one of the tools that can help you to sell your products for more money without losing your current customers.
The process of increasing business potential energy is to start to build the more and more superior value proposition and charge more and more, and you can invest more and more money to improve business potential energy of other business elements.
What is Superior Value Proposition?
Let’s start with the word superior. Wikipedia defines superior as:
Something which is higher in a hierarchical structure of any kind.
This mean that when we talk about superior we mean of something that has positioned higher in relation from something else. Superior business mean that has a higher position than their competitors on the market. Superior product or service mean that has a higher position on the market than competitors products or services. Superior entrepreneur mean that has a higher position in the marketplace than competitor entrepreneurs. This can be better quality, better feel and look, better image, better sales team and so on.
In Oxford Dictionary:
Value is simple the worth of something in terms of money or other goods that can be exchanged that something.
It now is clearer. This value will give us possibilities to sell our products or services for more money. However, if we add the word superior to value, we now know that the subject of superior is the value. Furthermore, there is a value of you as an entrepreneur, value of your business and value of your products and services. It is interesting to note that entrepreneurial value and business value can increase the value of products and services.
Now what is a superior value?
Superior value is worth of entrepreneur, business and products and services that are higher than worth of competitors entrepreneur, business and products and services.
For the proposition, I will use also Oxford Dictionary where proposition is defined as:
- A thing that is proposed, a suggestion.
- Statement that express judgment or an opinion.
As you can see there is the superior value that is proposed or suggested, and also there is also judgment or an opinion of our current or potential customers. The word proposition tells us that it’s all about spreading. It’s not important if we have superior value if we cannot spread the word about our superiority. And now:
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Superior Value Proposition is sending the message to our audiences with which they will recognize us as a business that have value that is higher than our competitors.
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Now we know that when we build superior value, we can spread that value to our current and potential customers and charge more for our products and services and can make a more profit from the whole process. In the next articles, we will cover the whole process of creation of superior value proposition:
- How to Build Superior Value Proposition – Part 2: Building Superior Value
- How to Build Superior Value Proposition – Part 3: Spreading the Word – Proposition Part
- How to Build Superior Value Proposition – Part 4: What Is The Benefits From Our Efforts
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