Every now and then small businesses and entrepreneurs reach a bottleneck; they seem to experience a halt in revenues and questions are raised!
How to deal with stuck business models that seem to have had a short positive P-over-L lifespan (profit over loss)?
Is it just a bump in the road that small business owners have not anticipated, or a macro-economic trend that conspired against your business?
Questions are raised, and much can be deduced in the aftermath of economic crises and the insane growth of certain corporations, but can Small Business owners and entrepreneurs take control of the situation and turn the balance sheet around?
Short answer: YES!
Enter: Customer Value Proposition (CVP)
Customer Value Proposition is the essence of your business model that should be at the core of your operations. Although it may seem simple and straightforward, it is also the very reason that many startups fail!
This article will avoid the subject of how to develop a CVP for your business as it is a very complex subject that involves math and statistics. Nevertheless, you will know how to UNSTUCK your company using this brilliant TOOL.
Here’s HOW:
Simply ask yourself (and your upper management) two simple questions:
1. Is your product solving a big problem to your customer?
If you are not fixing a huge issue for your customer, or alleviate immense pain, your product won’t be valued much by the customer. As a consequence, your product is easily replaceable or devalued monetarily.
The premise of this question is to reflect on the basic relation between supply and demand – price and quality. PROBLEM SOLVING IS IMPORTANT!
2. Is the customer segment able to purchase your product?
Even if you are solving a big problem to your customers, the product could be too expensive, or not available on a local level.
Many customers are not able to buy your products
whether because it’s all sold out or too expensive!
Such positioning in the market opens the
door for a competitor with the capacity
to fill in the market gap.
Most corporations were once small companies that tapped enabled customers to buy their products. ACCESSIBILITY IS CRUCIAL!
How to raise your CVP?
1. Redefine your CVP
Ask yourself and most trustworthy managers the questions from above. Do whatever it takes to make the answers positive! That would set you up for a successful market conquest!
2. Flex your business model and company organization to meet the newly formed CVP
Once you have all agreed what needs to be the objective of your business model and following operations. It is time to formulate a plan of action and inform everyone of their new responsibilities and the supposed goal the company is pursuing!
IMPLICATIONS: Customer Satisfaction (CS)
Now that you have done it and your CVP is high. it is time it understand the implications of your action:
1. Mass relief and many happy customers
People are joyous! They love your product and their experience with you is so good that every customer is instantly transformed to a brand ambassador; going from friend to friend recommend you!
2. Your product is accessible financially and logistically
Your customers are buying your products everywhere they go! Customers no longer have to hassle to find what they need. It is simple, easy and anyone can buy your product at no inconvenience!
YOU ARE UNSTUCK!
You have secured the whole niche you were after. In doing so – you are able to understand your customers’ behavior better than anyone else – you have increased the profit per customer that was attainable from the market you have targeted.
Well done!
FromBuzzToScience 