This is the first of the posts on Business Model Design. The topic this post will cover is Value Proposition, it is one of the boxes in the Business Model Canvas. In my opinion defining the Value Proposition is one of the fundamental blocks in building any business. The definition of value has to be clear. Lets consider the example of Auro Investment Partners aka Startup Iceland. When I embarked on this journey almost 3 years back the value I wanted to create was to enable entrepreneurs to achieve their highest potential and goals. Although the fundamental definition has not changed, what is valuable has changed depending on the lifecycle and stage an entrepreneur or the company that we work with is in.
Alexander Osterwalder in the Canvas asks fundamental questions that we need to take the time to answer:
What value do we deliver to our customers?
We deliver speed in capital decision, know-how, networking and physical presence into the US and Indian markets, mentoring and experience in starting, building and scaling companies in the technology and the hospitality business. Characteristic addressed: Speed, Performance, Risk Reduction, Customization, “Getting the job done”,
Which one of our customers problems are we helping to solve?
At the initial phase it is providing the seed and angel funding, followed up with mentoring, advising and help in building the team, a network and large markets of US, Europe and India. Characteristic addressed: Performance, Risk Reduction, Customization, “Getting the job done”, Cost Reduction
What bundle of products or services are we offering to each Customer Segment?
Our customer segment is broken down into Entrepreneurs in the technology space and Entrepreneurs in the hospitality space. For the customers in the technology space, we provide validation of the business model hypothesis, marketing and sales strategy, operational know how, team building know how and developing the market and customer know how. In the hospitality sector we bring vast experience in developing, managing and running hotels. In addition, we bring experience in advising investors in investing in hospitality business. Characteristic addressed: Customization, Risk Reduction, Performance, “Getting the job done”, Cost Reduction
Which customer needs are we satisfying?
We satisfy the need for early stage capital, mentoring and network development to validate product market fit. We try very hard to build relationships and partnerships that are driven by the principle of win-win. We want to understand and provide value for Entrepreneurs in the entire gamut of business development. We understand it is our previlage to have the opportunity to work with Entrepreneurs and not the other way around. We want the entrepreneurs who work with us to see the value we bring to the table, if we are unable to justify the value we simply don’t waste the entrepreneurs time. We believe we need to be evaluated the same way as we evaluate the teams and entrepreneurs we work with.
- LeanLaunchLab: Online Tools For Focused, Nimble Startups (forbes.com)
- Why Lean Canvas? (ashmaurya.com)