In response to Wednesday’s teleconference call, one of our listeners, Michael Madden, wrote in with an interesting question:
“How do new businesses determine their core value proposition since most of that discovery lies ahead?
With my broadcasting Career Center, I’m guessing the best way to approach that dilemma would be to understand it’s a fluid endeavor and establish my value proposition based upon what my vision for the company would be. You know the old saying “If you don’t know where you’re going—you’re liable to end up anywhere”.
I’d be interested in hearing your take on this, or advice for established companies that have such a screwed up VP they want to start over.
Thanks for everything you guys do down there to make it possible for the hungry little guys like me succeed.”
Our answer:
With regard to having a vision, and to know where you are going, this can work either for you or against you. It all depends on whether your vision is powered by a strong value proposition.
Here’s why.
If your vision is based on an actual market need, with manageable competition, and a significant audience who will welcome your product or service with open arms, then you may well have a winner on your hands.
However, all too often, an entrepreneur’s “vision” is an expression not of what the market truly needs and wants, but of a personal, subjective idea.
So when someone says, “I’ve had this great idea! Let’s sell plug-in coffee cup warmers for cup holders in cars!”, you have to do some research before you can decide whether this is supported by a strong value proposition, or is simply a “great idea”.
Thousand upon thousands of entrepreneurs base their visions, their goals and their businesses on a “great idea”, without doing the leg work. And one year later their companies close.
So while vision is a great thing, it works only within the framework of a strong value proposition.
