Entrepreneurial Incubator 1 - Value Proposition

Startup Terms

  • Value Proposition: A startup's unique selling point that makes it attractive to customers and investors.
  • First Mover Advantage (FMA): Advantage gained by being the initial significant market occupant.
  • Software-as-a-Service (SaaS): Software licensing and delivery model via subscription, centrally hosted, usually cloud-based.

Full Life Cycle Use Case

  • Helps to understand how your product fits into the Persona’s workflow from the customer’s perspective.
  • Describes in detail how your Persona:
    • Finds out about your product.
    • Acquires it.
    • Uses it to get value.
    • Pays for it.
    • Buys more or tells others about it.

Essential Parts:

  • How end users determine a need.
  • How they find out about your product.
  • How they analyze, acquire, install, and use your product.
  • How they determine the value gained.
  • How they pay for and receive support for your product.
  • How they buy more / spread awareness.

10 Stages of Full Life Cycle Use Case

  • Determine need & catalyst to action -> Find out about options -> Analyze options -> Acquire product -> Install -> Use and get value -> Determine value -> Pay -> Buy more -> Tell others

High-Level Product Specification

  • Creates a visual description of the product and a draft brochure.
  • Ensures the team agrees on what the product is.

High-Level Product Brochure

  • Outlines product features, explaining how these translate into function and customer benefits.
  • Target the brochure at your Persona.

Good Brochure Elements

  • Company and product name with taglines.
  • Clear product image.
  • Highlight primary and two additional benefits.
  • Show benefits' magnitude.
  • Avoid information overload.
  • Clear call to action.
  • Ensure alignment with customer priorities.
  • Design for visual appeal and readability.

Value Proposition

  • Reason why customers choose your company over another; solves a problem or satisfies a need.
  • A bundle of products/services for a specific customer segment.

Questions to Ask

  • What value do we deliver?
  • Which problems are we solving?
  • Which jobs are we helping the customer get done?
  • Which needs are we satisfying?
  • What bundles are we offering?

Quantify the Value Proposition

  • Summarize the value your product creates for the end user.

How to Quantify

  • Start with Persona’s #1 priority.
  • Map out the "as-is state".
  • Define the possible state with the new product.

Types of Value Propositions

  • Newness, Performance, Customization, "Getting the job done", Design, Brand/status, Price, Cost reduction, Risk reduction, Accessibility, Convenience/usability

The Value Proposition Canvas

  • Helps understand your customer and how to create value for them.
  • Creates empathy to understand the core value you're building.

Value Proposition Canvas Elements

  • Customer Segment: Jobs, Pains, Gains
  • Value Proposition: Products & Services, Pain Relievers, Gain Creators

Customer Understanding

  • Customer Jobs: What customers are trying to get done.
  • Pains: Bad outcomes, risks, obstacles.
  • Gains: Outcomes customers want to achieve.

Value Creation

  • Products and Services: Elements of your offer/solution.
  • Pain Relievers: How your offer resolves pains.
  • Gain Creators: How your offer creates gains.

High Level Value Proposition Template

Our [Products and Services] help(s) [Customer Segment] who want to [jobs to be done] by [verb, e.g., reducing, avoiding] [a customer pain] and [verb, e.g., increasing, enabling] [a customer gain] (unlike [competing value proposition]).

Identify Your Next 10 Customers

  • Identify 10 potential customers (besides your Persona) who fit the End User Profile to validate assumptions.

How to Complete This Step

  • List potential customers.
  • Engage in inquiry mode.
  • Validate hypotheses.
  • Seek letters of intent.
  • Collect feedback.
  • Refine assumptions.
  • Reconsider Beachhead Market.
  • Maintain confidentiality.