Step 1
As you have already learned, the first step to creating your business model is to determine your value proposition. The Value Proposition Canvas supports entrepreneurs to develop the product or service that customers really want and need. This very useful tool is composed of two main sections: the Customer Profile and the Value Map.
The Customer Profile is the first section that you want to fill in. It will help you to gain a deeper and clearer understating of your customers’ points of view. More specifically, this part asks you to consider three factors:
- Customers’ job: the activity that your customers want to accomplish.
- Gains: the outcomes and benefits that your customers expect to receive when accomplishing that activity.
- Pains: all the obstacles and risks that prevent or come with achieving that activity.
Step 2
Once you have a very clear mind of your customers’ profile, you can move on to develop what you want to deliver. Again, this section is divided into three parts that correspond to and match the three factors of the Customer Profile. Therefore, this part supports you in the development of:
- Products and services: the actual products and/or services that will allow you to deliver your value proposition.
- Gain creators: the ways through which your business will meet your customers’ expectations. On top of this, you also want to think about providing certain advantages and benefits that maybe your customers would not expect.
- Pain relievers: how your product and/or service can reduce or even eliminate undesired obstacles and risks.
The key point is to understand your customer
It is important that you first understand your customers' point of view to then be able to deliver what they need and want.
