This is the first part of a series of articles that will focus on the steps to build a superior value proposition for your business, products and services or your total offer.
These posts can be used by all types of businesses – offline and online. Some important thing that I want to note here is that superior value proposition is the tool that you can use to increase your business potential energy. When I think much deeper about this tool I can say that probably this is one of the most important tools that can help you in building your business.
When startup business succeeds in building superior value proposition than this is the business that will survive on the market and probably it will become the market leader in the field of its business.
In this series of articles will be cover following titles:
- 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 Are The Benefits From Building Superior Value Proposition – Fourth Article
Now it’s time to put all the gears in the process to work for your business and increase and transform at the same time your business potential energy.
Why You Need to Build Superior Value Proposition?
I will continue with my model of explanation with the business potential energy. Business potential energy is the energy that is stored in the business and can be converted into kinetic energy. The business kinetic energy is the energy that will bring increased profitability for the businesses. I have already explained the 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 has a direct relationship with a superior value proposition are two elements from that list: prices and cash.
When you sell your products or services for a higher price that will cover all your costs and bring a higher profit for you, then you will have a better cash flow. With a cash in your hands, you can increase your business potential energy on other business elements as your knowledge, products and services, marketing, sales team and so on. If you don’t have a cash your business potential energy will be at a lower level.
How you can increase your price?
But, you cannot increase your price before you build a superior value proposition about you as an entrepreneur, your business and your total offer. I will talk about YOU, YOUR BUSINESS and YOUR PRODUCTS AND SERVICES as elements that can help you to build a superior value proposition.
You need to understand that superior value proposition is something that can help you to sell your products for more money without losing your current customers.
The process of increasing your business potential energy is to start to build more and more superior value proposition. Only in such a way you can charge more and more money. If you have more money, you can invest more to improve the business potential energy of your 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 means that when we talk about superior we mean about something that is positioned higher in relation of something else.
Superior business means that has a higher position than their competitors on the market. Superior product or service means that has a higher position on the market than competitor’s products or services. Superior entrepreneur means that has a higher position in the marketplace than competitor’s entrepreneurs.
The superior can be measure for better quality, better look and feel, better image, better sales team and so on.
Let’s continue with the second word – the value.
In Oxford Dictionary:
Value is simply the worth of something in terms of money or other goods that can be exchanged for that something.
It is now much clearer. This value will give you possibilities to sell your products or services for more money. However, if you add the word superior to the word value, you now know that the subject of superior is the value. Furthermore, there is a value of you as an entrepreneur, the value of your business and the value of your products and services. It is interesting to note that your entrepreneurial value and your business value can increase the value of your products and services.
Now what is a superior value?
Superior value is worth of an entrepreneur, a business and products and services that can rank higher related to worth of competitor’s entrepreneur, business and products and services.
For the proposition, I will use also Oxford Dictionary where it 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 about that superior value. 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:
Now you know that when you work on building your superior value, you can spread that value to your current and potential customers and charge more for your products and services. In such a way you can make more profit from the whole process. In the next articles, we will cover the whole process how you can create 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 Are The Benefits From Your Efforts