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Fundamentals of Entrepreneurial Management Series

Workbook 1: Crafting Your Value Proposition

Workbook Template

Activity 1: Describe your idea

Write a brief response to the following questions.

• Who is your target customer? What kind of problem do you solve for them?

• Is this an important problem for this customer? Is it an urgent problem?

• How do you plan to solve this problem for the customer? Describe how your solution will work in the customer’s hands and the benefits that it will generate.

• Who is your competition? How do they solve this problem for their customers today?

• What is unique about your way of solving the problem? Why are you better than anyone else in solving this problem?

Activity 2: The meaning of value

List 15 to 20 values you derive from buying or doing things. Then create a short list that most accurately describes the value your product offers your customers.

Activity 3: Crystallize your value proposition assumptions

Review your answers to the following questions. Label each answer as Fact (and list the accompanying evidence) or Assumption (if you don’t have any evidence at this stage).

Activity 4: Test your target customer assumptions

List the assumptions you made in Activity 3, and then answer the following questions.• What key piece of information would validate or invalidate the assumption? (Information)• Where does that information reside? Who has that information? (Where/Who)• What is the best way to gather that information? (Method)

Activity 5: Prepare to talk to customers

Gather answers to the following questions.

What are the key political, regulatory, economic, environmental, social, cultural and technological trends that affect the space you are in?

What are the key issues facing customers in this space?

Who are the key stakeholders?

Who are the analyst firms, analysts, journalists, bloggers and conference presenters that talk about relevant issues and technology?

What are the main conferences and events?

What are the main media outlets that keep people informed about the industry and its technology?

Interview guide

On the basis of the information in the previous checklist and the assumptions described in slide #5, prepare the questions and issues to address in your interview guide:

Evaluating and Updating information

After testing your assumptions

Activity 6: Evaluate market feedback

Evaluate the results of your test.• Is the market problem urgent? Will customers care if the problem is not

solved? Do they have another way to solve this problem?

• Is the market problem pervasive? Determine if the identified market problem applies to a significant percentage of your desired target market.

• Will your buyers pay to have this problem solved?

• On the basis of the answers to the above questions, which direction should you take?

Activity 7: Update your problem statement

Write a brief description of the specific problem your target customers face, as well as the impact of the problem and its pervasiveness. Include the following information:

• The objective of their work: What are they trying to achieve?• How they perform their work• The problem they face• How the problem impacts their objective

Activity 8: Create your initial target customer list

Create a list of target customers on the basis of the customer interview.

Activity 9: Create a day-in-the-life scenario

Address the following points to create a day-in-the-life scenario.

Activity 9: Create a day-in-the-life scenario (cont’d)

Activity 10: Describe your product vision

Write a statement that describes your product vision, which identifies one or more of the following:

• Your target customers and their problem• The product solution you are making• How the user goes about their job and will use the product solution• Customer outcomes and benefits• Three- and five-year scenarios for your product and company

Activity 11: Create the MVP

Describe the key aspects of your MVP for which you are currently seeking market feedback.

Activity 12: Test the MVP

Answer the following questions after testing the MVP.

• Is our understanding of the customer problem accurate and relevant?

• Does the MVP solve the customer’s problem?

• Does the product solve the problem better than a viable alternative currently on the market?

• Would they use the product? Can they imagine the product as part of their everyday life?

• What is their primary concern about buying and implementing the product?

Activity 12: Test the MVP (cont’d)

• How much would they be willing to pay for the product?

• What process would the customer employ when deciding to buy such a product?

• Who is involved in the decision-making process?

• Whose budget will the funding come from?

• Who will be the users of the product?

Activity 13: Take the next steps

Ask your team to help you answer these questions.

• Has the customer problem been verified?

• Has the product solution been validated?

Activity 14: Create your value proposition

Use the following template to create your value proposition.

For (target customer)

Who is looking for/challenged with (describe specific problem)

We have developed (type of solution, maybe a word or two about how it works [e.g., fast-working, easy-to-use, cost-effective])

That helps/generates/creates/saves/improves (or any other benefit)