Writing Your Value Proposition
As a company, your value proposition is a short statement that defines your business and distinguishes you from your competitors. It is a statement that speaks to your potential investors, customers and other key stakeholders and defines what your company does or plans to do.
Your value proposition should quickly and clearly:
1. Outline what your customer will get if they purchase your product or service, and why what you offer is different from your competitors.
2. It should state your industry as well as the product you offer.
3. State who or how you are helping. Actively define your ideal customer to the reader and state the problem they are looking to solve.
You should have two versions of your value proposition.
- The first will be six words or less. It is often used before or after your company name to describe what your company does.
For example: Acme, a consumer-focused healthcare data platform
- The second will be a longer description, no more than fifteen words, which will provide deeper insight.
For example: Healthcare platform empowering consumers to own and understand their data, for better health outcomes
Both of these value propositions contain all three elements:
1. What your customer will get: access to a healthcare platform that tracks their and explains data
2. Industry as well as the product: Healthcare & data platform
3. Who or How are you helping: Who – consumers ; How – healthcare empowerment
A note on value propositions: Don’t stress about them not being perfect on your first attempt. As you go through the Newchip Accelerator you are going to get crystal-clear on the elements of your business which define your value proposition. Your value proposition will evolve over the life cycle of your business as you take on new customers, expand market share and scale.
For now, work to craft a clean, simple statement which tells the world what you do and who you do it for.