Value Proposition: Does your business have one?

In Access to finance by boma2 Comments

Value Proposition?
What really is the meaning of this term?
It is any business in layman terms which involves the ‘value’ your business offers to the marketplace.
When an entrepreneur or a business decision maker is asked “So, what do you?” What often follows is a cross between the history of the organisation, a treatise on the issue and a life story.
“So, what do you?”
Unfortunately, the answer to this question is not a pitch. It is not the reason that would make people buy your product or service.

value proposition

Value Proposition is important for financing

I decided to write this post for a couple of reasons.
In the last couple of weeks based on our primary research we have had to tweak our offering to accommodate our latest offering – access to finance.
Our Access to Finance service requires a company to have been in business for a minimum of 3 years, be a growth focused company and have audited accounts and be based in Nigeria.
Is your business 3+ years old and is it growth (expansion) focused?
In order to access this finance, there is a need to clearly articulate what it is you have, why it is beneficial to the client and why your business is the ideal organisation to buy from.
This is what the Value Proposition should do. It also helps define the things your business needs to get right and improve on.
  • Starbucks: To build the brand one cup at a time, based on three key ingredients: the quality of the coffee, our own retail stores, and selective brand extensions.
  • The Boy Scouts of America: Consistently delivering the youth experience to a growing membership base.

On the website of the Dangote Group, they do not have a value proposition but rather core values.

However, their vision and mission is profound and I have to mention it because when you look at them, it is everything they do.

Dangote’s Vision: To be a world-class enterprise that is passionate about the standard of living of the general populace and giving high returns to stakeholders.

Dangote’s Mission: To touch the lives of people by providing their basic needs.

When you actually look at their offering in the marketplace they are dominating their market and touching lives of people by providing their basic needs. It is for this reason, they are extremely successful apart from other complaints.

The Dangote group has a very clear purpose.

Value Proposition and Nigerian Businesses

Many Nigerian businesses do not have a clear purpose.

In fact to be honest with you, most of them are “me too” or copycat businesses with no clear vision.

I would give you an example.

While, I was developing this article, I examined presumable successful companies in Nigeria with regards to those who had a clear dominance and could not find any of them with a value proposition.

It was really bad because when I searched in Google for Konga’s value proposition, all I could find was an advert for a human resource to come and be their value proposition expert.

See here: http://www.hotnigerianjobs.com/hotjobs/68488/head-value-proposition-marketing-at-konga-nigeria.html 

I could draw my conclusions that they probably started the company as a “me to.” Copying Amazon but unfortunately driving dominance inorganically with promotion and advertisement. This practice is not sustainable.

They are not the only ones, a lot of entrepreneurs write business plans only for one thing getting loans from banks and that is it. Having a vision, mission and a value proposition then a business model and a plan is the only way to sustain success.

Loans, VC funds, etc are all good. They are only part of the mix. If you cannot demonstrate to these entities how you would return their investment and profit. You would not qualify to receive any cash.

Developing a value proposition isn’t an easy process for most businesses – however, it is immensely useful. It provides the core of the sales and marketing messages and identifies the target client.

Organisations needs the value proposition to keep being very good at what they are good at and not lose focus.

Invariably, this means that it also shows the management team what they need to focus on.

In summary

When someone asks, “So, what is it you do?” You can hit them right between the eyes. If they are a target client it just might lead to a sale.

Bringing this article back to the crux of the matter. Do you want to expand your business? If you are an entrepreneur or a business, then you need to meet the following requirements:

  1. registered with the CAC – Corporate Affairs Commission in Nigeria
  2. be in operation for a minimum of 3 years
  3. have a clear value proposition
  4. a growth focused company and
  5. have audited accounts.

If you meet only number 1 of the above criteria, send a Whatsapp message to +234 903 915 1191 for a quick confidential chat (remember we would help you with your value proposition).

Call us on +234 903 915 1191 for a quick call on how we can make you to receive financing to expand your business.

You can also contact us in the contact box below and explain to us your unique challenge around accessing funding to grow your business exponentially.

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Comments

  1. At WOW! Cakes Enterprises our mission is to deliver delicious and unique cakes to our customers on-time and with courtesy. To constantly motivate our staff and out-perform our competition.

    Our Business Model: We also maintain a friendly, fair, and creative environment, which respects diversity, new ideas and hard work. We intend to make enough profit to generate a fair return to our investors and to finance continued growth and development in quality products

    1. Author

      @Lawson, it is to long, they should not be more than 140 characters (Twitter-size) at the worst.

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