Lean Canvas Model 3- Unique Value Proposition
The third section of the Lean Canvas Model is the Unique Value Proposition.
Check out this video for a quick explanation: https://youtu.be/wPnSRuokJbs
The Unique Value Proposition is how you will offer value to your customer. Value comes in a variety of forms. Sometimes, value is in the way that we normally think of it, strictly connected to costs. When we say something has good value, it is either inexpensive or offers a large amount of something. In the case of the Unique Value Proposition, the value can be in any benefit that it has to the customer. Some considerations are below.
Section 3 is where you establish your mission statement. A mission statement for any business venture is vitally important. A mission statement is a clear and concise statement, often of only a sentence, that lets you and others know what you wish to accomplish in your business. Without a mission statement, your business model can become very messy, since you may add on too many revenue streams or attempt projects or menu items that will detract from the business as a whole. When you begin a business, other will be very willing to offer suggestions as to products or services you may offer, or menu items you might try. If your mission statement is not clear, you might end up with a business that has so many parts, it is impossible to do any of them well. This happens many times with local restaurants , where they offer so many different menu items and don’t show a clear vision in their offerings. This confuses customers and makes decisions difficult. This can drive customers away since they struggle to make choices. This also can mean that staff will have a difficult time learning the whole menu which means that quality might go down. Keeping a clear mission helps you weed out ideas that will not help in your vision.
An example of this is my business, KittyDuck Cakes and cookies. I have a NC Department of Agriculture inspection so that I can prepare baked items that do not require refrigeration and offer them to customers, restaurants, or retail operations. I have had many people mention that I should open a retail location. My business is a side hustle for me as a teacher and to have a location would involve a great deal of money, as well as quitting my full time job, requiring this business to take the place of a salary. At this time, I have a minimum of investment. If I am overwhelmed, I don’t take jobs, and I am able to use the profits to pay for travel and other things I enjoy. Buying a location would turn my Side Hustle into a full time job with a great deal of pressure and obligations. Keeping my business small fulfills my purpose of supplementing income while not becoming too much for me to manage.
Another element of your mission statement is looking at how you will stand out doing the same thing or similar things. There are a wide variety of ways to provide value to a customer.
Sometimes the value is in that you are the only one offering a product in a reasonable distance. For example, you are the only restaurant offering breakfast in a shopping area.
Sometimes the value you offer is in a level of luxury. You have a fine dining restaurant in an area that only offers casual dining. You become the destination for birthdays, anniversaries, and special occasions in your area. You offer a dining experience rather than just a place to eat.
Sometimes your value is in speed of service. You are able to ensure that customers can order, eat, and pay in less than an hour so that they can eat in your restaurant for lunch and not be late coming back. You may be a bakery that can offer special event cakes at a moments notice.
Sometimes the value is in quality. You offer a product at a higher quality than processed or packaged food. Your quality of ingredients and technique can all impact this.
Sometimes the value is in specialty items such as gluten free, allergy safe, organic, vegan, or all local ingredients. All of these markets are highly valued by at least a section of the population.
Being able to express what your Unique Value Proposition is, will help you in letting others know who you are and what you offer in a quick and simple way. It keeps your business model clean and helps you reach customers easily with what you offer. If you are unable to define what is unique about your business, you may need to tweak some elements of your plan.
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