Value Proposition & Competitive Edge

Value Proposition is centered on the benefits a company or start-up confers to the customer/client. Your business plan's value proposition is therefore vital in explaining the tangible results of your product or service. It is almost always focused on what results your business will create and is usually abstract. After all, the value of your product or service is being explained in two dimensions on a piece of bleached white paper-it involves a fair amount of faith. The ideal Value Proposition for your business concept will include content determination; an agreement on interests and market/customer need sales and marketing components; and how you will deliver the product or service.

The Competitive Edge of your business plan is often placed close to the Value Proposition, usually in the Strategy and Implementation section. The two concepts are intrinsically linked. The Value Proposition tells investors the results than can expect from you and the Competitive Edge explains why they should trust you to deliver. The Competitive Edge section explains what makes your product or service special and superior to every other company in your market. Since the Competitive Comparison section comes earlier in the plan, it has already explained the strengths and weaknesses of your rivals. The Competitive Edge can focus entirely on what makes your business concept unique in the marketplace.

Like the Value Proposition, the Competitive Edge doesn't necessarily have to be long or drawn-out. If you are an existing business, the section can be a succinct way for you to lay out exactly what your strengths are within your industry. If you're a start-up, the Competitive Edge allows you to drive home your unique qualities. How does your company stand out within its industry? Do you have a secret weapon on your staff, or is your business located in a prime area of downtown? Are you first to market with a product or service? The Competitive Edge is the perfect place to go into detail about them. Both sections are a way to acquaint your company with your investor, so making the most of them will bring you one step closer to your dream.