Before taking on step 1, please first read “Marketing plan: an introduction” to see how the different steps relate to one another. Image by Vectorportal.
Value proposition
As an entrepreneur you want to provide value in a particular market (e.g. laptop market), for a specific customer group (e.g. digital nomads).
Searching for a value proposition
It is not always immediately clear what market you should pick and whether you have the required skills to execute the idea. This means that the search for a suitable business idea can take a while and often includes minor and major failures (e.g. companies that go bankrupt) before you are set on the right track. Being willing to go through this trial and error process is likely what defines an entrepreneurial spirit. The difference between an entrepreneur and an employee is that the former is often more willing to challenge conventional wisdom and take risks.
Market insights
Being an entrepreneur is all about seeking out and capitalizing on market opportunities, meaning that you have to be both aware of trends in the market, as well as have a practical mindset as execution is more important than coming up with the idea itself. In life and business we often like to believe that success is based on clear rules and planning, but in reality luck is a major factor. So the controllable part of starting a successful business comes down to staying on top of trends and developing a clear value proposition.
Designing the value proposition
When writing a business plan the first step includes the identification of (1) relevant trends, (2) challenges and (3) openings (i.e. a field with little competition) in the market and (4) combining those elements into a value proposition:
- Identify trends in the market that your business idea capitalizes on.
- Identify challenges or problems in the market that your business idea offers a solution to.
- Identify an opening in the market where there is limited competition and a chance for your business to make a profit.
- Transform the acquired information into a value proposition, encompassing an Unique Selling Point (USP): “__ [company name] ___ in the market of __[product category]_____ offers ___ [USP] ___ with the help of ___[product name] ___, unlike ____ [competing companies] ____.”
Go to step 2