"The value proposition answers the question what are you building and for who?", Steve Blank, [[Udacity - How to Build a Startup]]. In the [[Business Model Canvas (BMC)]], the [[value proposition]] refers to the unique value a company offers to its customers. It is the central element of the canvas and defines why customers would choose one company's product or service over another's. The value proposition addresses customer needs, solves problems, or fulfills desires in a way that is distinct and compelling. The value proposition can include various elements such as: 1. **Innovation**: Offering something new or novel that hasn't been available before. 2. **Performance**: Improving product or service performance. 3. **Customization**: Tailoring products or services to specific customer needs. 4. **Design**: Superior design that enhances usability or aesthetics. 5. **Brand/Status**: Providing a sense of identity or status through brand association. 6. **Price**: Offering competitive pricing or better cost efficiency. 7. **Cost Reduction**: Helping customers save money by using your product/service. 8. **Risk Reduction**: Reducing risks for customers, such as financial risk, safety risk, etc. 9. **Accessibility**: Making products/services available to customers who previously lacked access. 10. **Convenience/Usability**: Simplifying processes for ease of use. The value proposition involves addressing a [[customer problem|problem]] or [[customer need|need]] for a customer, with technology being just one component of the solution. It also encompasses understanding who your customers are. Your customers are seeking to solve a problem or fulfill a need. ## Activity - Watch the video [Business Model Canvas Value Prop.](https://youtu.be/PHYKaRVGt3U?si=HHTaNhmvvMYn9KL0) ([[Udacity - How to Build a Startup]], Lesson 3.3) Next: [[What are customer segments?]] Back to: [[An Introduction to the Business Model Canvas]]