You can be on Entrepreneur’s cover!

What is Your Value Proposition? How to understand your value to make sales.

By Lizet Zayas

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Entrepreneurship is one of the most exciting journeys anybody can embrace. When we start with our business, we assume everybody will love and understand what we have to offer. But the main challenge in sales is not money or the price but not making our value clear to our potential clients.

As we compete in a saturated market and find ourselves struggling to sell, we have to ask ourselves these questions — what is my value to others?, and why do my clients need me over others?

The value proposition is a common term within creative agencies. However, most entrepreneurs have no experience doing these strategy sessions and miss implementing this critical step. As a result, they do not know the reason why their sales are low. As part of our sales journey, we have to come back to this question — what is our value?

Related: Want to Stand Out From the Crowd? Know Your Unique Value ...

There are many steps to consider to define our value proposition. Keep in mind there is a process of strategy and brainstorming to find it and it can take many sessions to perfect it. Below are some of my recommendations for you to consider so you can gain a better understanding as you pursue sales.

What is your product? What does it solve and why do you think it is worth it?

Remember the price of your product should not only be based on the production costs or what you want to make, but also on the value and impact it has on your customers.

Related: How to Develop and Evaluate Your Startup's Value Proposition

Know your target market

You may be aiming at the wrong segmentation. Perhaps you consider your product is for high-paying clients while your value is actually for low-budget clients. Accepting this will allow you to position your value and the price accordingly. Be realistic.

Define all the solutions your product offers

Think of the short-term and long-term effects, and put a price on each. Also, I recommend comparing them to your competition with details — explore the advantages and disadvantages. You may find your value is greater or less than you previously thought.

Do not be modest in your communication

Often we overlook how much value we have to offer. We focus on the description of our services, the logistics and the legal aspects. But not expressing enough how much impact we can create for our clients or customers.

Put yourself in your client's place

Imagine how the experience will be for them. Will they use your products for a long time or a short period? Knowing this will help you understand your value.

Understand the difference between wanting something, needing something or both.

Sometimes we are confident to know what others need and we assume our assumptions are correct, but we do not really know for sure the lives of others. When we understand that our products address a desire, a need or both, we can be clear on our value, our price and who to market it to.

Don't ignore the emotional aspect

Sales are tied to emotions. A potential client may sit and postpone buying a product that will be a solution for something that is needed. They may make an impulse buy or expensive transaction on something that instantly changes their mood, such as a vacation. It makes no sense but people spend faster on things that they know will make them feel better, no matter the cost. So to find your value, determine how your product can connect to their emotions and make them feel better. Addressing pain points, in my opinion, can create a resentful reaction, and fear of being manipulated. We all are seeking to feel good, so find your value with this intention.

Work with experts to do creative and strategy sessions

Explore your customer journey and the impact your product offers. Creative people are always thinking outside the box, exploring all possible scenarios.

Remember, our value is constantly evolving. Our clients and we, as business owners, will change as well. So our value is something we constantly have to revisit. The more we place ourselves seeking sales, the more we will be forced to understand what we have to offer. Don't give up, just keep learning your uniqueness and you'll get there.

Related: How to Develop a Winning Value Proposition (Infographic)

Lizet Zayas founded Successfully and is an international consultant for companies, startups and private clients. She's also a speaker, innovator, sustainability and company-responsibility advisor, marketing strategist, philanthropist and social-change advocate. Learn more at Lizetzayas.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Side Hustles Are Soaring as Entrepreneurs Start Businesses Working Part- or Full-Time Elsewhere, According to a New Report

The younger the entrepreneur, the more likely they were to start a business as a side hustle.

Side Hustle

This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

After moving to New York City, Danny Trejo started a business to stay in touch with his roots — literally.

Business News

Scrabble Makes First Change to Its Board in Over 75 Years

The new roll out is only available in Europe as of now.

Growing a Business

Want to Become an Industry Leader? Be a Guest on Podcasts — But Not the Ones You Think

If you are trying to promote your new product or service, there's a simple yet effective way to stand out from the rest.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

CPI Report: Inflation Rose More Than Expected in March, Driven By Housing and Energy Costs

The average U.S. household is paying $227 more per month for goods compared to one year ago.