Creating a strong value proposition for your Canadian small business is essential to your success as an entrepreneur. Make your business stand out from the competition in an increasingly competitive marketplace with a value proposition that demonstrates the unique aspects of your products and services.
What’s Your Value Proposition?
The value proposition of your products or services is not just a statement that there is some value in what you offer. Instead, it conveys a unique value that customers can’t find at your competitors. The value proposition of your business is also commonly referred to as your “unique selling proposition.” What are the unique and persuasive reasons for a customer to come to your business instead of going somewhere else? That’s your value proposition.
The Importance of Your Value Proposition
Your value proposition is the foundation of branding your business, putting a clear idea in customers’ minds of what your business is about and what makes it special. For example, think of Rolex watches. Rolex has made their company name synonymous with high quality and value. Likewise, British Columbia’s Moon Cursor winery is a small business that has successfully established itself as a producer of unique and interesting wine vintages.
Creating a strong value proposition should ideally be part of creating your business at the very beginning. How do you make that happen? Research the marketplace, and study your competitors, thinking about what you can offer customers or clients that they don’t. For example, if you’re opening a small boutique hotel or bed and breakfast, think about what message you can communicate to travelers that can make staying at your hotel more attractive than staying anywhere else. Perhaps you have an ideal location that offers easy access to most of the places vacationers want to visit in your city. Or maybe your hotel offers the most scenic view. You might also consider offering an extra luxury service to guests, such as spa treatments or Jacuzzi tubs in every room.
Making Your Value Proposition Effective
It’s not enough to just say you’re the best. Your value proposition has to be credibly persuasive for it to work at drawing in business. Numbers can be one means of validating your value proposition. For instance, if your value proposition is that you always have products in stock that other businesses may not have, then quote a statistic that backs you up. If you operate a hardware store, perhaps you can state something like, “We guarantee in-store stock on 97 of the 100 most commonly purchased hardware items.” You can easily keep a claim like that solid by using good business tools such as QuickBooks inventory management software.
A good alternative way to validate your value proposition is with testimonials from satisfied customers. Using the example above of a boutique hotel, if you can land a testimonial such as, “We’ve stayed in over 100 hotels around the world, but this was the best,” then that may attract some business.
Communicating Your Value Proposition
Successfully communicating your value proposition is all about consistent marketing messages. Express your company’s value proposition in all your marketing material, regardless of what specific product or service you’re advertising. Create a tagline for your business that expresses your value proposition. Making it brief, clear, and direct, something that can easily be made into a hashtag on social media, is a good idea. The goal is to make the name and logo of your business instantly recognizable and identified in customers’ minds with the unique value you offer them.
Creating a strong value proposition for your business both attracts customers and helps to build customer relationships for repeat business. Be sure to let potential customers know exactly what it is that makes doing business with you special.