Another reason why business seem to stall or flatline is that the business leader isn’t clear enough about the value that she brings the client. Businesses only exist because they bring value. They can charge more for the value that they bring than it costs to produce that value, thereby they make profit and become financially sustainable. It is a simple enough concept, but one that we often forget or overcomplicate.
It is important therefore to understand how we provide value.
Now value is different to price. Price is what we pay. Value is what we get for what we pay. Someone once said that If Starbucks was about coffee and Bentley about transportation, they would never exist. Bentley provides a much different value proposition than simply transportation and Starbucks is about more than coffee.
Were Bentley to lose sight of what their real value proposition was they might try to cut corners on quality and finish and in doing so destroy the sense of value that their customers enjoy.
Do you truly understand your value proposition?
The best way to get to your Value Proposition is to answer these three questions.
These seemingly simple questions are far from straightforward and it is well worth taking the time to truly dive deep into them.
Remember that the only person who is truly capable of deciding whether the value you provide is worth the price, is the customer. As long as there are enough customers who decide that it is, you will have a viable business. If not, you wont.
Understanding your customers is critical to this process, as it is to many business decisions. Losing sight of your specific value proposition and its implications to your client can quickly cause a business to feel as though it has stalled or gone backwards as we try to scrabble for other solutions and fail to see that our value proposition is now off centre. Maybe only slightly but off centre nonetheless.
This reason may or may not apply to you. It is one of the 10 most frequent reasons businesses seem to stall or flatline. I will be dealing with this and the other 9 reasons in my next seminar. Click here for details. Or Click here for details on the other 9 possible causes.