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  • Writer's pictureTamara

How to define a Value Proposition

Once you have an overview of your solution, be it a product or a service, you can start thinking about the value proposition. It mainly answer the question "why should potential customers use it?" This article will cover how to define a killer value proposition for your startup.

How to define a value proposition

What is The Value Proposition?

The value proposition is the formulation of what value/benefits/gains customer get from using your product or service. It's the "Why" they should use it. In the end, it's directly linked to the problems your solution is solving for the customers and the gains they receive from it.


Why is The Value Proposition important?

Customers only buy things that can alleviate their pain and bring them benefits. Customers don't buy features, they don't buy technology, they buy what is associated with it - the gains/value they get from it. That value can have different facets such as financial value, or emotional value but not only. It's on you to determine what value your solution brings.


How to create a Value Proposition?

With all the knowledge you've gathered so far by talking to the customers and researching about them you know what pain points you are solving. You can just take the Framework: Value Proposition and fill it in.

Value proposition framework

Supporting Tool & Additional Resources

If you are having troubles with the Value Proposition you can use this additional Value Proposition Canvas from Startegyzer to structure your thoughts. Below a video explaining it.


Many founders confuse the value proposition with the USP. But these are two inherently different things. The value proposition relates to the benefits using your solution brings to the customers. The USP (Unique Selling Point) is your competitive advantage or why and how your solution is different to your competitors' solutions.

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