value propositions of business plan

How to write a value proposition for a business plan

Table of Contents

What is a value proposition?

Aspects that make up your value proposition, how to write a value proposition for a business plan (and everywhere else), value proposition canvas, customer profile, the steve blank formula, tips to create a value proposition that converts, take your business to new heights with countingup.

A value proposition is an articulate description of why customers should choose your business over others. In other words, your value proposition is the foundation of your competitive advantage. So it’s important to highlight it in your business plan to show potential investors and other stakeholders that you’re worth their time and money.

This guide will show you how to write a value proposition for a business plan. We’ll cover the following topics:

• Why you need to include a value proposition
• Tips to write a value proposition that converts

In a business plan, your value proposition comes after your executive summary and company description, meaning readers already have a general understanding of your business. If you’re unfamiliar with the term, a value proposition describes the value you promise to deliver to your ideal customer or client. 

Basically, you use your proposition to explain why someone would invest in your business and solution over anyone else. You already know why your business is special, but the key is to make it clear to anyone who reads your business plan. 

Your value proposition is only a simple statement rather than a long message, such as Grammarly ’s “Great writing, simplified” or HelloFresh ’s “Take the stress out of mealtime ”. Both these companies tell you how they help you in just a few words. 

But don’t let the simplicity keep you from coming up with a good value statement in the first place. The important thing is that your statement answers the following questions:

• What problem or pain point does your business solve?
• What are the benefits people get from your solution?
• Why should someone invest in you rather than your competitors? 
• What’s your advantage over other companies?

When developing your value proposition for your business plan, make sure you consider and include the following elements:

• Vision – this describes the ‘why’ of your business, meaning why you do what you do. Your vision shares your aspirations and how they help guide your efforts.
• Mission – this is where you explain what you do and how you do it. Describe the strategies you use to achieve your vision. 
• Values – here, you describe your values as a business and what characteristics clients thank you for (or will thank you for). 
• Unique selling point – your unique selling point (or USP) is the distinct advantage you have over your competitors that makes you stand out in the market. It can be your price, quality, design, selection, or even words. Or perhaps you offer a highly efficient service because you have a system like Countingup that speeds up many of your internal processes?
• Ideal client – you need to know who your ideal customer/client is to clearly communicate why they need your solution specifically. Try creating an ideal customer profile where you add all the relevant information you have about your ideal client. The more specific your profile, the easier it will be to explain your solution’s value to that group of people.

There are a few ways you can create a value proposition for your business. Here are some methods you can use.

This visual tool helps you position your solution around your customers’ needs. You can use the value proposition canvas to build your first statement or to enhance the one you already have. The canvas has two components: the customer profile and the value map. Let’s look at the parts that make up each component.

• Gains – the benefits your customer expects and needs that will increase the likelihood of attracting them to a value proposition.
• Pains – the negative experiences, emotions and risks customers want to escape.
• Customer jobs – the tasks customers try to perform, needs they try to satisfy, or problems they try to solve.
• Gain creators – how your solution helps create customer gains and satisfy their needs and expectations. 
• Pain relievers – how your solutions help eliminate customer pains.
• Products and services – the products and services you provide that create customer gains and relieves their pains. 

Explore each section from your customers’ perspective, imagining how each benefit increases pleasure or decreases pain for the person using your solution. 

For example, every self-employed person has financial management tasks they need to complete. By using Countingup , they can manage their finances from one simple app and minimise their time spent on these tasks. They’ll feel less stressed and more inspired to move their businesses forward. 

If you think the value proposition canvas is too complicated, you can try the simple formula by entrepreneur Steve Blank . He noticed many startup founders focus on features instead of benefits when attempting to create their value proposition. Instead of summarising how their company offers value to customers, leaders get stuck trying to choose which features to highlight. 

The Steve Blank formula gives you a way to transform your ideas into a simple sentence. Simply write down your ideas like this:

We help (X) do (Y) by doing (Z)

Let’s look at each component a little closer:

• We help X = Who is your ideal client, and what problem or pain point do they suffer with? 
• Do Y = Where does your ideal customer want to achieve by using a solution like yours?
• by doing Z = What value does your business deliver to the customer, and what makes you unique from your competitors?

When using this formula to come up with your value proposition, remember to go with your gut. Sometimes the first thing that comes to mind is the best. 

For example:

Countingup helps self-employed entrepreneurs manage their businesses efficiently by streamlining key financial processes. 

To wrap up, here are a few quick tips to help you create a value proposition that will inspire investors to keep reading your business plan and convert leads to customers. 

• Keep it short and concise – your statement needs to instantly tell people why they should buy from you. 
• Be precise – your value proposition should offer targeted solutions to specific needs.
• Focus on the customer – your goal is to prove how you solve customers’ problems, not your own. 
• Value takes many shapes – there are a bunch of ways you can deliver value to your customers, including money, convenience, time, and superior quality or service.

Countingup is the business current account and accounting software in one app. It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK. 

Save yourself hours of accounting admin so you can focus on growing your business. 

Start your three-month free trial today. 

Apply now .

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

Related Resources

What are the advantages and disadvantages of setting up a private limited company.

Ready to launch your new business? You’re probably wondering whether to set up

Tax advantages of setting up a limited company

When setting up your own business, you’ll have to choose a particular legal

How to set up a limited company

Starting your own business is an exciting time and no doubt you’re eager

Best Side Hustle Ideas To Make Extra Money In 2024 (UK Edition)

Looking to start a new career? Or maybe you’re looking to embrace your

How to register a company in the UK

There are over five million companies registered in the UK and 500,000 new

Personal finance vs business finance: How to keep your accounts separate

The main difference between a personal account and a business account is that

Business insurance from Superscript

We’re partnered with insurance experts, Superscript to provide you with small business insurance.

How to set up a TikTok shop (2024)

TikTok can be an excellent platform for growing a business, big or small.

How to throw a launch party for a new business

So your business is all set up, what next? A launch party can

How to set sales goals

Want to make manageable and achievable sales goals for your business? Find out

10 key tips to starting a business in the UK

10 things you need to know before starting a business in the UK

How to set up your business: Sole trader or limited company

If you’ve just started a business, you’ll likely be faced with the early

How to Write a Great Value Proposition [7 Top Examples + Template]

Updated: August 06, 2024

Published: January 20, 2015

Your company’s competitive advantage lives or dies by its value proposition. If you can’t clearly distinguish your product or service from your competitors — and then deliver on your brand promise — why should customers choose you ?

The stakes are high, but writing a great value proposition shouldn’t strike fear into your heart. (And if it does — deep breath. We’ll get through this together.)

In this article, we’ll define what a value proposition is, and just as importantly, what it isn't . We’ll also break down examples from seven well-known brands.

I’ve also talked to a handful of marketing experts to bring you tactics and tips for creating value props that will help you lift sales, boost conversion rates , connect and engage with customers, and solve world peace. (Just kidding on that last one. But a good value proposition does address a lot of marketing problems.)

Free Value Proposition Templates

15 templates to help you brainstorm, write, and promote your value prop.

• Value Proposition Writing Templates
• Value Proposition Canvas Template
• Brand Hierarchy Template

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

We'll cover:

What is a value proposition?

• Value Proposition vs. Mission Statement (vs. Others)

Elements of a Value Proposition

How to write a value proposition, 4 methods to build great value propositions, value proposition templates, value proposition canvas examples, value proposition examples, what makes a good value proposition.

• Value Proposition FAQs

A value proposition is a short statement that communicates why buyers should choose your products or services. It's more than just a product or service description — it's the specific solution that your business provides and the promise of value that a customer can expect you to deliver.

A value proposition, sometimes called a brand proposition or core proposition, might be the difference between losing a sale and closing it. In other words: A great value prop is an essential conversion factor.

For that reason, it‘s important to create one that accurately represents your products and services, distinguishes you from competitors, and makes it clear why you’re the best choice.

Let us help you make this process easier: Download our templates below and follow along with the rest of the post.

Your value proposition is yours — it distinguishes your business from your competitors, and it clearly communicates that to customers.

Without it, buyers won't have a reason to purchase what you sell. They may even choose a competitor simply because its marketing campaigns and sales processes have a clearer value proposition.

You might think: Isn't my value prop interchangeable with, say, my slogan?

Nope. It's easy to confuse your value proposition with other similar brand assets , such as your mission statement, slogan , or tagline. We break down the differences below.

Value Proposition vs. Mission Statement

"How do you do what you do?"

"What do you do for your customers?"

Download for Free

Products & Services

While you don’t need to list every single product or service your company offers, include the ones that will create the most gain and alleviate the most pains for your customers.

Step 3: Determine the value proposition-customer fit.

Once you've completed the value proposition canvas exercise, the next step is to determine how your value proposition fits within the customer profile.

To do this, you'll use a ranking process that prioritizes products and services based on how well they address the customer profile.

All together, your value proposition canvas should look something like this:

35 Vision And Mission Statement Examples That Will Inspire Your Buyers

31 Companies With Really Catchy Slogans & Brand Taglines

22 Famous Brand Slogans (And the Little-Known Stories Behind Them) [Infographic]

What Makes a Slogan Successful? [Infographic]

10 SaaS Value Propositions You Wish You Had

Quiz: Can You Guess the Brands Behind These 16 Slogans?

Before & After: 11 Brands That Gave Their Slogans a Makeover

10 Cliché Marketing Taglines We Should All Stop Using

10 Marketing Jingles That Make Your Ears Bleed

15 free value proposition templates to help you brainstorm, write, and promote your value prop.

The weekly email to help take your career to the next level. No fluff, only first-hand expert advice & useful marketing trends.

Must enter a valid email

We're committed to your privacy. HubSpot uses the information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For more information, check out our privacy policy .

This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

You've been subscribed