Whether you’re pitching your business idea to funders and business partners, or trying to close a deal at a sales meeting, having a clearly defined “Unique Selling Proposition” will be a key to your success.
Two specific parts of your pitch are important:
- The Value Proposition
- The Unique Selling Proposition
The Value Proposition
This helps you to explain why a customer will buy your product or service . It describes what problem is solved by what you offer. There is no sense in trying to sell a Ford if you haven’t yet convinced the consumer that driving a car is a good way to get around.
The Unique Selling Proposition
A good value proposition is only half of the battle. The key to success is the Unique Selling Proposition. This is specifically how you describe why the customer will choose to buy from you over others. Once someone has decided that a car is a good way to get around, they could choose a Ford because it is more fuel efficient than a competitor. What is your Unfair Advantage? For example:
- Is yours built better? If so, prove it. Make a plan for how you can demonstrate your advantage.
- Are you cheaper? If yes,make sure you are sustainable. Simply cutting the price because you are new can be detrimental to your business or even the entire market if you aren’t making enough from each sale or if you redefine consumers’ expectations of price. If you’re cheaper it should be because you have an advantage allowing for a lower price.
- Do you have a better track record of success? If you do, give specific examples and explain why that is a good thing.
The Unique Selling Proposition should help to differentiate your offering from that of other similar businesses. General statements like “better customer service” don’t work well (unless you can prove that your competitor went into business on the premise that they would offer bad service). Being specific, drawing attention to what makes you special, and convincing buyers that you do something no one else can will help consumers, investor or funders believe that you are the one-and-only business in your space worth banking on.
The Halton Small Business Centre has resources and information to help with decision-making and business planning. For more information about resources, services, business events and seminars, contact us by dialing 311, 1-866-442-5866, online athalton.ca/smallbusiness, by email at firstname.lastname@example.org.