Value propositions

Lesson Details:

Video Transcription: With this video let's begin going through the business model canvas and we're going to start with the value propositions if you are filling this out at home you can't you have a few options you can print this out I'm gonna have this as a downloadable in the course downloadables so you can just download it print this out and fill it out but you don't even have to do that because it doesn't have to be in this nice canvas format you can just use it in a notebook or you can use word document online this visual is just to guide you but you can use whatever you're comfortable with to actually write the content of your business model so the value proposition we've got to start here because that's what's in it for your customer without your customer without your company providing some value there's no point of the company existing so it's all right here this this is the most important thing arguably and we've got a start here and everything is around this everything gets molded and shaped around this so I'll give you some examples of the kinds of benefits that a business can typically have you can solve a problem you can improve something you can teach entertain and make something easier more efficient faster you can be new unique creative a new approach to something you can have a different better price better quality better design give somebody some kind of branding or status you can remove some pain points all those things are very good potential values that you can provide and you have to ask yourself when you identify what value does my business provide is that value strong enough for example if I just have a little itch on my hand okay I can scratch it and it goes away so I'm not gonna pay to get that removed but if I have a migraine oh my god I'm gonna pay for Advil or I'm gonna pay for some pain medicine because that is really a much bigger problem point so if you're selling advil fine you have a product you have a market because people will pay to remove that big pain and then you have to also ask do I solve a universal need which indicates a big market or do i solving a small tiny need for a subset of people both okay depending on what your business goals are but you have to understand where you fit now let me give you some examples of existing value propositions and you'll notice they all fit on one line and what I'd like for you to do is have no more than one or two sentences for this because you what you don't want to do is have a super long run-on.

We're great at this we're great at this for greater this simplicity is key if you understand something really well you can explain it in a sentence or two if you're yourself confused that's why it's gonna take a lot of sentences to explain it so try to trim it so here are some examples if you provide services offline online as a freelancer as a agency as a cleaning business services industry is tremendous the common things that our value propositions are and keep in mind services industries typically are very commoditized it's very competitive and one cleaning service should do an almost identical job if it's a good job as a next cleaning service and so on and so on so a lot of the services they're more or less commoditized there's a lot of good service providers so the typical benefits are good price fast delivery hopefully better than most competition and it's dependable and reliable that's what people usually want out of service providers obviously friendly good support and a few other things but these are the main valued positions from services now let's say your courses well it's you learn faster and cheaper than the university or other courses or the course is actually higher quality course and you the learning that happens is actually of accurate and relevant information those are the benefits sometimes the benefits is you might get a job or you may might make money after the course so it might actually improve your life in some way what about uber the taxi app well it's safer for a lot of people it's cheaper for a lot of people it's faster for a lot of people and it's convenient because it comes right from your phone you don't have to wait for a cab what about the drivers well they can make money they have lifestyle freedom and it's a fast way to make money they don't have to apply for jobs that might take months and months to get a job they can just apply for uber and in a few days they can start driving and what about something like Facebook it's fun it's entertaining and you get to stay in touch with friends so you see all of these even though there are more than one benefit generally I was able to condense it into just one line I would urge you to do the same don't have to do just one line but be relatively brief about it for your own sake you do not want to over complicate things at least not yet so what we covered is what to write in the value propositions section of the business model canvas and some examples for very different kinds of businesses.