When you own a small business, just one of your jobs is to let your target audience know what sets you apart from your competitors. This is called your value proposition. If you’re not yet sure what yours is, it’s time to define your audience and consider what your product or service can offer the world. Only then can you figure out your small business value proposition. These tips can help you get started on the process so you can truly compete with other businesses in your industry.
Determine Your Target Market
Before you can decide what makes your small business the right choice for your target audience, you need to decide who that audience is made up of. According to Bplans, you should keep in mind that your business won’t appeal to everyone, so don’t try to make everyone your customer. Instead, find out the demographics of the people likely to buy your products or services. Get to know the age, gender, income, and hobbies of the people you’re selling to so you have a complete picture of them in mind.
Think About How You Can Solve Your Target Market’s Problems
You should first consider what their problems are. Then you can determine how your product or service solves them. For example, if you own a food delivery service, your target market’s problem is getting food without leaving the house or office, and your business can solve that. More specifically, perhaps you solve the problem faster than other nearby food delivery services do, making speed your small business value proposition. The U.S. Small Business Administration lists great quality and excellent customer service as other examples of value propositions that might apply to your business. If you’re still not sure, just make a list of your company’s strengths and choose the one that your target audience most appreciates.
Consider the Limitations of Your Competitors
What you offer might be great, but it’s not unique if your competitors can provide the same thing. Your small business value proposition needs to be something very few others can offer your customers. If you’re having trouble coming up with an answer, Inc. recommends that you just think about how your competitors are lacking. Maybe speed is on their side, but their products fall apart easily, meaning that product quality is not their strength. If, on the other hand, your products are known for lasting years, product quality could be your small business value proposition.
After you figure out your value proposition, make sure everyone knows it! This means you should incorporate it into your marketing strategy in various ways. You can turn it into a tagline, put it on your website, or print it on your product packaging. Just get it out there for your target market – and potential new customers – to see!
