Every successful business starts with a clear value proposition. A value proposition tells customers why they should choose your product or service. It explains what makes your offering special. Think of it as your business’s promise to customers.
Steps to create a strong value proposition
1. Know your target audience
Start by understanding who needs your product or service. Michael Amin, a respected business advisor, often says that success comes from solving real problems for real people. Here’s how to understand your audience:
- Talk to potential customers
- Study their daily challenges
- Learn about their goals
- Find out what solutions they currently use
- Listen to their feedback
2. Identify the problem you solve
Every great business fixes a problem. Your job is to find a problem worth solving. Ask yourself:
- What frustrates your target customers?
- What tasks take too much of their time?
- What needs aren’t being met?
- What could make their lives easier?
3. Define your solution
After understanding the problem, explain how you solve it. Your solution should be:
- Clear and easy to understand
- Different from what others offer
- Actually helpful to customers
- Something people will pay for
4. Research your competition
Know what other businesses offer. This helps you find ways to be different. Look at:
- Their products or services
- Their prices
- How they talk to customers
- What customers say about them
- Where they fall short

5. Find your unique angle
This is where you get creative. Think about what makes your business special. It could be:
- Better technology
- More personal service
- Lower prices
- Faster delivery
- Higher quality
- New features
- Better design
6. Test your ideas
Before going all in, test your value proposition. This helps avoid costly mistakes. You can:
- Show prototypes to potential customers
- Ask for honest feedback
- Run small trials
- Make improvements based on what you learn
- Start with a simple version and grow
Common mistakes to avoid
- Being too broad – Trying to please everyone usually means pleasing no one. Focus on a specific group of customers.
- Copying others – Your value proposition should be yours alone. Don’t just copy what successful companies do.
- Ignoring customer feedback – Listen to what customers tell you. They often know what they want better than you do.
- Being unclear – If customers don’t understand your value proposition in seconds, it needs work.
Making it work in real life
Start small – Test your ideas with a small group first. Learn from their responses before going bigger.
Keep learning – Markets change. Customer needs change. Keep updating your value proposition as required.
Tell your story – Share why you started your business. People connect with authentic stories about solving real problems.
Measuring success – Know if your value proposition works by watching:
- Customer feedback
- Sales numbers
- Customer returns
- How long customers stay
- What customers tell others
Building for the Future – A good value proposition grows with your business. Plan for:
- New customer needs
- Market changes
- Technology updates
- Growing competition
- Bigger opportunities
Taking action – Start creating your value proposition now:
- Write down your target customer
- List their main problems
- Explain your solution
- Compare it with competitors
- Test it with real customers
- Make it better based on feedback
As Michael Aminoften points out, successful businesses solve problems in new ways. Your value proposition shows customers why your solution is the right choice for them.