Don’t overlook it, everything in startup functions around this.
On-demand app startups are the talk of the town now. Many ambitious persons are trying their luck in this exciting market which focuses more on innovation and creativity than capital.
Day-to-day services like getting food, booking taxi, laundry, courier delivery, and many more are made to come under the on-demand model. Things that are on the verge of innovation are the first to come under it. Obviously, there are many around us that are desperate for innovation and disruption. So there is no doubt about the craze and scope on-demand has.
Like any other business, on-demand startups also require a great value proposition. Having a perfect value proposition clearly tells how different you are and erring on this may prove to be negative. Before getting down to explain how to write a value proposition, let me be clear about the basics.
What exactly is the value proposition?
For businesses or startups to stand out from others, it should have any feature or innovation that nobody else has. This unique feature or innovation of a product/service is the value proposition.
A value proposition clearly answers questions like Why you? and What you have that others lack? What specific benefits I can expect?
Why it is important for on-demand startups?
The craze for on-demand services also brought in it with a huge no. of startups even for the same service. At this point, it is imperative to stand out from the crowd and gain the most.
“Value Proposition Design is a ‘must have’ for anyone creating a new venture. It captures the core issues around understanding and finding customer problems and designing and validating potential solutions.” – Steve Blank
Of course, the service you offer must be impeccable and along with a unique value proposition, you can do wonders. For example, the common value propositions of the on-demand model are:-
- The comfort of getting the service with a tap on the mobile phone.
- Access to service anytime and anywhere.
- Paperless payment.
Also, it is possible to have a different value proposition for the same kind of service. So it is possible to be different among the same crowd.
Two same services with different value canvas
Ola is a taxi aggregator from India. Its value proposition is providing a great experience to customers who use car rentals.
Uber is a taxi-hailing startup operating worldwide. It is similar to Ola but its value proposition is quick booking and fast cab arrival.
Within each on-demand service, having a unique value proposition helps to establish a place for you.
How to write one for your startup?
“On-demand is the tool for 21st-century disruption” – Srivanth
I always advise startup founders to have a clearly defined value proposition before getting into the core of the business operation. First, let me tell you the common misconceptions about value propositions. A value proposition is not a slogan or positioning statement or mission statement.
For example, the slogan of Uber is ”We ignite opportunity by setting the world in motion”.
Now let us go deep into the development of a value proposition.
Process of creating the value proposition
If you have zeroed in on a startup idea, then do market research on other startups in the same domain. Find their value proposition and be clear that you must be different and better from theirs. Then, design your startup service and list all the benefits you offer to the customers.
Link the benefits with the value for the customer. Remember that not all value is worth it and a perfect one should come out of strongly addressing customer pain points.
Now, finalize your target customers, what maximum value you offer them, and how the service is different from the competitors.
“You can’t be everything to everyone but can be something to someone.” – Andrew Davis
Elements of the value proposition
- First is the headline which must describe the end benefit you are offering via your startup.
- Second is you have to explain what you offer that benefits users and to whom you offer.
- Next is to list out all the features and innovations you have brought.
It would be better to present an example of this. Uber – “The smartest way to get around”. Benefits for users: One tap and a car come directly to your location, Your driver knows exactly where to go, Payment is completely cashless. The service is mainly aimed at frequent commuters who fret with hailing a taxi on the road.
How value proposition should not be?
- Complex words with so many jargons.
- Not straightforward and difficult to interpret the maximum value it offers.
- Don’t explain how it is different among others.
If you feel the importance of your business and want to stand out, then start with a good value proposition. Remember that all your startup activities like marketing, finances, etc revolve around the value canvas.
Using the on-demand business model it is possible to build a variety of startups and with tech advancements, it is easy to have an uncommon value proposition.
A killer value proposition can get you places and seal your startup’s position on top of the on-demand market ladder.