Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Building a Compelling Value Proposition

819 views

Published on

Startup Secrets presents a lecture on how to build a compelling value proposition. Learn about stories, the information necessary, and the questions to ask yourself about how to show people you're worth the money!

Published in: Business
  • Be the first to comment

Building a Compelling Value Proposition

  1. 1. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential Building a Compelling Value Proposition startupsecrets.com
  2. 2. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential Workshops Full descriptions of each at startupsecrets.com 1. What’s Your Roadmap to Success? 2. Building a Compelling Value Proposition 3. Turning Products into Companies 4. Culture, Mission, and Vision 5. Hiring A+ Talent 6. Game-Changing Business Models 7. Go to Market Strategies 8. Getting Behind the Perfect Investor Pitch 9. Funding Strategies to go the Distance 10. Have You Got What It Takes? 11. Mastering Mutual Mentorship
  3. 3. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Agenda 3 Evaluate Build Gain Pain Value Prop Define Ideas Problem Solution
  4. 4. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  For (target customers)  Who are dissatisfied with (the current alternative)  Our product is a (new product)  That provides (key problem-solving capability)  Unlike (the product alternative) 4 Value Proposition
  5. 5. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  For Mobile Enterprises  Who are unable to deliver Apps to users bringing their own devices to work  Our product is an Enterprise App Services Environment (EASE)  That provides for users to securely access Apps and Information  Unlike (MDM), our patented Cloud based (MAM) solution is instantly turned on and scales to tens of thousands of users 5 Example – Apperian (simplified)
  6. 6. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Where Might You Start? 6 Evaluate Build Gain Pain Value Prop Define Ideas Problem Solution
  7. 7. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Ideas: Free Floating? 7
  8. 8. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Evaluate Build Gain Pain Value Prop Define Agenda - Problem 8 Ideas Problem Solution
  9. 9. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Unworkable  Unavoidable  Urgent  Underserved 9 Problems worth solving are usually the 4 U’s… Problem
  10. 10. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Broken business process  Consequences? 10 If the consequences are costly or painful, so much the better. e.g., Who gets fired if this doesn’t work? Unworkable
  11. 11. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Accounting  Regulation 11 Is the problem so fundamental you can’t avoid it and just have to comply? Unavoidable
  12. 12. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Relative to other needs …  Priority • Determines resources allocated 12 If you’re not at the top of the list, are you at least in the top 3? If not, will you get moved up or down over time and why? Urgent
  13. 13. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  You will compete in a zero-sum game  Finite: • Money • Time • People • Attention 13 Underserved: Business
  14. 14. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Social • Find • Connect • Communicate • Meet • Share • Entertain • Date 14 Examples:Needs: • Social • Security • Physical • Economic • Recognition • Responsibility • Achievement • Growth Underserved: Consumers
  15. 15. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Qualify the Need 15 Is it “BLAC” & white? - (B)latant - (L)atent - (A)spirational - (C)ritical Blatant Latent Aspirational Critical White Space
  16. 16. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Is it addressing a “white space” in the market? • an open area of opportunity • which you can capture • Uniquely well • AND defend with a moat  NOT just technology, business model too 16 moat Startup Secret! Create a Moat
  17. 17. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Is it 4 U? • Unworkable • Unavoidable • Urgent • Underserved  Is it BLAC and white? 17 Problem - Summary
  18. 18. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Ideas Can Now Be Applied! 18
  19. 19. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Blatant Critical Ideas: Fit to Problem 19
  20. 20. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Agenda - Solution 20 Evaluate Build Gain Pain Value Prop Define Ideas Problem Solution
  21. 21. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Solution 21
  22. 22. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Faster • Cheaper • Better Startup Opportunity? 22
  23. 23. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition What is your compelling breakthrough? 3D Break Something! 23
  24. 24. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Discontinuous innovation • Defensible technology + • Disruptive business model A breakthrough that COMPELS people to ACT ! 24 Breakthrough Opportunities 3D
  25. 25. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  It’s often as much work going after a small fight…  Big problems often = big opportunities 25 Startup Secret! Pick a BIG Fight
  26. 26. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  It’s often as much work going after a small fight…  Big problems often = big opportunities  Start small (Execution), think BIG (Vision), develop a ROADMAP • See Roadmap to Success on startupsecrets.com • e.g., Uber  An app with the potential to disrupt an industry 26 Startup Secret! Develop a Roadmap
  27. 27. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Evaluate Build Gain Pain Value Prop Define Agenda - Evaluate 27 Ideas Problem Solution
  28. 28. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Before After Acute Pain  Absolute Joy  Qualitative Evaluation 28
  29. 29. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Before After Acute Pain  Absolute Joy  Vitamin vs. Morphine Qualitative Evaluation 29
  30. 30. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential UTEST* EXAMPLE (*Later renamed APPLAUSE)
  31. 31. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  For companies with web or mobile apps  Who are dissatisfied with apps that work as expected in the QA lab, but not in the hands of end users  Our in-the-wild testing  Enables them to test their apps under real-world conditions  Unlike outsourced testing, which merely moves the QA lab to a cheaper part of the world, but doesn’t actually improve app quality 31 uTestBefore & AfteruTest
  32. 32. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Before: Test In The Lab & Hope 32 Testing inside the lab is vital. But today’s web & mobile apps require a new approach to augment lab testing: in-the-wild testing After: Test Where Your Users Are Before & AfterBefore & After
  33. 33. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Introducing the gain / pain ratio 33 Quantitative Evaluation Gain Pain
  34. 34. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  The gain delivered to the customer vs.  The pain and cost for the customer to adopt Gain / Pain Ratio Gain Pain 34
  35. 35. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Revenue • Cost savings • Time • People • Competitive advantage • Reputation • Etc. Gain Gain 35 Pain
  36. 36. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Find (See) • Try • Buy • Implement • Deploy • Own – e.g., TCO Pain Gain 36 Pain
  37. 37. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Gain from uTest: • Scale infinitely and immediately  From 3 testers, to 30, to 300, and back to 0 • Lower total cost of testing  EG: SMBs - unlimited testing for ½ the cost of one FTE • Test under real-world conditions  Live testers, real devices, imperfect conditions… in-the-wild  Pain from uTest: • More testing reports, creating more work  Takes time to re-produce, vet and rate 50+ bugs • More collaboration, creating more oversight  Coordination between in-house & crowd testers  Goal: • Maximize in-the-wild testing, while minimizing overhead uTest: Gain vs Pain 37
  38. 38. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Switching costs? • Default = do nothing • Alternatives? • Good enough = good enough! • RISK on a startup Inertia 38 Gain Pain Inertia, RISK
  39. 39. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition What’s the Right Ratio? 39 Gain Pain Inertia, RISK
  40. 40. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  > 10 to overcome • Inertia • RISK 40 Gain / Pain Ratio Inertia, RISK Gain >10 Pain
  41. 41. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential ACTIFIO EXAMPLE
  42. 42. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Gain / Pain Ratio  Average of 30:1 benefit • $34m vs $1.2m • Recovery used to take 8 1/2 hours v 2 minutes 42 Inertia, RISK Gain >10 Pain
  43. 43. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Customer View: Gain / Pain 43 • Revenue • Cost savings • Time • People • Competitive advantage • Reputation • Etc. • Inertia • Switching costs? • Default = do nothing • Alternatives? • Good enough = good enough! • RISK on a startup • Find (See) • Try • Buy • Implement • Deploy • Own – e.g., TCO Inertia, RISKGain Pain
  44. 44. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition “An order of magnitude” Customer view: Gain / Pain 44 • Revenue • Cost savings • Time • People • Competitive advantage • Reputation • Etc. • Inertia • Switching costs? • Default = do nothing • Alternatives? • Good enough = good enough! • RISK on a startup • Find (See) • Try • Buy • Implement • Deploy • Own – e.g., TCO Inertia, RISK Gain Pain >10
  45. 45. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential UTEST* EXAMPLE (*Later renamed APPLAUSE)
  46. 46. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Tough to quantify precisely, but here’s what we’ve learned 46 Gain vs. Pain Ratio Gain Pain Cost Savings: 10X Lower Escape Rate by 75% Make Testing Mirror User Base Launch Confidence Higher Quality Apps vs. Increased Overhead 5:1 on cost basis 20:1 on cost + value basis Customer Gain / Pain Ratio 46
  47. 47. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition • Test latest version of Google Chrome across 300 highest trafficked URLs on the web Traditional Outsourcing vs. uTest Testers 8 Testers 30 Hours / Tester 40 Hours / Tester 10 # of Days 5 # of Days 2 # of URLs Tested 300 # of URLs Tested 300 # of Discovered Issues 19 # of Discovered Issues 129 Price $15,000 Price $10,000 Price-per-Issue $789 Price-per-Issue $78 Sample Customer ROIGain vs. Pain Ratio Sample Customer ROI 47
  48. 48. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential APPERIAN EXAMPLE Mobile Application Management
  49. 49. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  Increase revenue by 40% at counters  Roll out 17,000 iPads  Deliver worldwide no IT touch required  Saved $2.5M+ in direct IT costs Example - Apperian 49
  50. 50. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Disruptive innovation Yet… NON-disruptive adoption 50 Startup Secret!
  51. 51. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Evaluate Build Gain Pain Value Prop Define Agenda - Build 51 Ideas Problem Solution
  52. 52. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  For (target customers)  Who are dissatisfied with (the current alternative)  Our product is a (new product)  That provides (key problem-solving capability)  Unlike (the product alternative) 52 Value Proposition
  53. 53. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  What problems do you understand uniquely well?  What solution can you deliver uniquely well?  What kind of disruptive business model can you bring? 53 Build Around YOU
  54. 54. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition 1. Define • 4U Need (Unworkable, Unavoidable, Urgent, Underserved) • 3D Solution (Discontinuous, Defensible, Disruptive) 2. Evaluate • Gain / Pain >10 3. Build • Around YOU! 54 Summary
  55. 55. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential info@startupsecrets.com
  56. 56. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidential Building a Compelling Value Proposition startupsecrets.com
  57. 57. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition 1 2 3 HOW DISQUS WORKS Easy install for all platforms Sites are part of the Disqus network Sites integrate Disqus Users engage with Disqus Users discover new content & sites across Disqus Sites see tangible benefits, including increased traffic on their pages Audience development made easy. Millions of users use Disqus to participate online and we make that valuable for publishers in a way that they can measure. 57
  58. 58. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition THE DISQUS ECOSYSTEM A COMMUNITY ECOSYSTEM is the foundation of our business. USERS GOALS Discovery Community ADVERTISERS GOALS Acquisition Retention PUBLISHERS GOALS Engagement Growth Revenue 58
  59. 59. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comCulture, Mission, and Vision DISQUS – Value Prop for Publishers FOR · Publishers, like online media or bloggers WHO CARE ABOUT · Building more engaged, loyal audiences directly on their sites OUR PRODUCT IS · The most widely used discussion platform online THAT PROVIDES · An “engagement management platform” for publishers, and · direct reach into millions of engaged community participants online UNLIKE · Social networks, which don’t properly serve the needs of publishers · Or white-label software, which doesn’t provide the wide network reach of users 59
  60. 60. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  For those in the developing world  Who are dissatisfied with limited access to diagnosis  Our product is a patterned paper-based diagnostic technology  That provides low-cost, easy-to-use, point-of-care diagnostics  Unlike no diagnosis 60 Diagnostics For All - Alok
  61. 61. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition Before Need After Solution 53% of Rwandan women cannot afford healthcare 26% of Rwandan women live too far from a hospital [1] National Institute of Statistics of Rwanda (NISR) [Rwanda], Ministry of Health (MOH) [Rwanda] http://www.measuredhs.com/publications/publication-fr259- dhs-final-reports.cfm Point-of-care Minimal training required Cost = 1¢ Diagnosis by telemedicine Image: http://www.trust.org/alertnet/news/alertnets-top-20-big-ideas-that-dont- cost-the-earth/ DFA 61
  62. 62. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition  NO current solution => huge  NO infrastructure required  NO training required  NO time required  Customers’ Gain / Pain ratio = ∞ 62 DFA Gain / Pain
  63. 63. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition At-risk pregnancy Liver function • 8 million affected globally • Conducting ~700 person trial in Vietnam • Test for ALT/AST enzymes • Cost: $14 v. 1¢ (DFA) Child nutrition Small farmer support Customer ‘pain’ is real pain DFA Example 63
  64. 64. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition How Thoroughly Should You Define? A little and then iterate? or A LOT and then execute? 64
  65. 65. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition “A problem well stated is a problem half solved.” -Charles Kettering 65 How Thoroughly Should You Define? A little and then iterate? or A LOT and then execute?
  66. 66. Proprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and ConfidentialProprietary and Confidentialstartupsecrets.comBuilding a Compelling Value Proposition CASE STUDIES Actifio Apperian Disqus DFA uTest Thank you… 66

×