Part of our Business Model Design Series, emphasizing how your business model must create, deliver, and capture value.
Introduction
Welcome to the AREA 81 Business Model Design Series, where I delve into how every great venture must create, deliver, and capture value.
In this post I’m going to touch on how to create a winning value proposition for a product.
But, first I’d like you to consider this key mindset and that is this: your business model is your product.
Let’s get started on how to craft a winning unique value proposition for a product, or UVP, using a business model design framework called the Lean Canvas developed by Ash Maurya.
Please note that this post and 15-minute presentation is the starting point in helping you on your path to designing a winning value proposition for a product … business model.
Watch the Presentation
Presentation Takeaways and UVP Examples
Introducing Venture Value
Remember, a key mindset we’d like you to adopt is that your business model is your product.
Before we dig into creating a value proposition for a product (business model), it’s crucial to understand venture value—the value your business creates, delivers and captures.
In simple terms, a business model that maximizes venture value must:
Create Value: Identify a real problem(s) that your customers want and need solved that existing alternatives aren’t addressing in part or at all.
Deliver Value: Reach and serve customers in ways that make it easy for them to benefit and receive value from your offering (solution).
Capture Value: Generate sustainable revenue, ensuring the business can grow and thrive.
Before you stop reading and think this doesn’t apply to my idea, my business or my industry. It does or it should!
Why the Value Proposition for a Product Matters
A value proposition for a product defines the why behind your offering. It conveys:
Which problem you’re solving
Why your target audience cares
How your solution differs from existing alternatives
When done right, your value proposition connects the dots between venture value and customer needs—setting the stage for a profitable, sustainable business.
Real-World UVP Examples
Tim Hortons: “You’ve always got time for Tim Hortons.”
Addresses time-strapped coffee lovers who crave convenience.
Emphasizes ease and familiarity—core differentiators.
Apple iPod: “A thousand songs in your pocket.”
Solves the inconvenience of carrying CDs or cassettes.
Offers a clear, memorable benefit that instantly resonates.
Star Wars: A movie, a product and a business model!
Value Creation: George Lucas crafted an immersive universe that resonated with audiences worldwide.
Value Delivery: Star Wars films were screened across theaters globally and later leveraged merchandise and home media.
Value Capture: Massive box office revenue, toy sales, and licensing deals turned this IP into a cultural and financial phenomenon.
Each example represents a strong value proposition for a product, highlighting a customer problem and a compelling benefit that sets their business model/product apart that can be defended with an unfair advantage.
This Post Is Just the Beginning
While this post and presentation give you the first steps in crafting a value proposition for your product (ahem, business model), truly mastering it will require additional hands-on practice and real-world feedback.
That’s why we invite you to dive deeper by learning more about AREA 81 including our upcoming business model design workshops—so you can apply business model design to accelerate your success as an entrepreneur, your business idea or existing venture.
Your Next Steps
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Start with our coffee chats (open to AREA 81 members and non-members).
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Presentation Slides: Winning Attention. Crafting a Clear and Compelling Unique Value Proposition (UVP)
About the Author
Chris Herbert spearheads Mi6 Agency, emphasizing small business growth and entrepreneurship. On the agency's blog, he offers practical marketing insights and solutions to unique challenges faced by businesses. Herbert advocates for sustainable and responsible growth. His "Rural Entrepreneur Podcast" extends this mission, providing essential advice and experiences for entrepreneurs. He adopts a comprehensive approach, focusing on building sustainable businesses, community engagement, and active participation in entrepreneurial ventures.
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