Come up a business to business idea that is not in the market.

Value Proposition

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The Business Canvas:

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Value Proposition

• What product or service are you building?

• For who are you making the product or service?

• What problems does it solve?

• It is NOT about your idea

• It IS about satisfying a customer need

• You need to get out of the building to validate and pivot if necessary.

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Value Proposition Product

Need to understand:

• Which are part of the solution? - Manufactured goods, commodities

• Any intangible products - patents, copyrights, licenses

• Financial Products? - Insurance, guarantees

• Digital Products? - Apps, Web

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Value Proposition Components

1. Features: what does your product offer?

2. Gains: what gains are you providing customers?

3. Pains: what customer pains are solved?

What is the Minimum Viable Product (MVP) that addresses these components?

• What do customers think is important?

• Get out of the Building to understand? EEL 4933

Develop MVP Solution

• It is the first version of your solution

• Not a minimal product

• Based on customer inputs, it provides a 1st

customer acceptable version

• Web/App based solutions: need to develop a PPT representation of the solution

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MVP is a result of the Pain Reliever and Gain Creator work!

Value Proposition Mistakes

• It is “nice to have” as opposed as “I need to have it”

• Not enough customers care

• It’s a feature of something else and not a business

• Market size: is it big enough for the product or service

• Why has no one done this before?

• Not being aware of the competition

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Types of Value Proposition

Technology Insight

• More efficient

• Smaller

• Faster

• Cheaper

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Market Insight

• Better distribution

• Better bundling

• Branding

• Simpler

Killer Value Proposition combines both!

Value Proposition Example: UBER

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Example of Hypothesis/Test/Results

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Simple Value Proposition

Template: For [target customer] who [statement of the need or opportunity], our [product/service name] is [product category] that [statement of benefit].

Example: “For non-technical marketers who struggle to find return on investment in social media, our product is a web- based analytics software that translates engagement metrics into actionable revenue metrics.”

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Questions?

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