Fundamentals of Entrepreneurial Management Series

Workbook 1:
Crafting Your Value Proposition
Workbook Template

Company: <Enter your company name here>

Last updated: <Enter the last update date here>
Activity 1: Describe your idea

Write a brief response to the following questions.

• Who is your target customer? What kind of problem do you solve for them?

• Is this an important problem for this customer? Is it an urgent problem?

• How do you plan to solve this problem for the customer? Describe how your solution will
work in the customer’s hands and the benefits that it will generate.

• Who is your competition? How do they solve this problem for their customers today?

• What is unique about your way of solving the problem? Why are you better than anyone else
in solving this problem?
Activity 2: The meaning of value

List 15 to 20 values you derive from buying or doing things. Then create a short list that most
accurately describes the value your product offers your customers.
Activity 3: Crystallize your value proposition assumptions
Review your answers to the following questions. Label each answer as Fact (and list the
accompanying evidence) or Assumption (if you don’t have any evidence at this stage).
No. Question Fact (with evidence) Assumption

1. Who is your target customer? What kind of

problem do you solve for them?

2. Is this an important problem for this

customer? Is it an urgent problem?

3. How do you plan to solve this problem for

the customer? Describe how your solution
will work in the customer’s hands and the
benefits that it will generate.
4. Who is your competition? How do they solve
this problem for their customers today?

5. What is unique about your way of solving the

problem? Why are you better than anyone
else in solving this problem?
Activity 4: Test your target customer assumptions

List the assumptions you made in Activity 3, and then answer the following questions.
• What key piece of information would validate or invalidate the assumption? (Information)
• Where does that information reside? Who has that information? (Where/Who)
• What is the best way to gather that information? (Method)

Assumption Information Where/Who Method

1.

2.

3.
Activity 5: Prepare to talk to customers

Gather answers to the following questions.

 What are the key political, regulatory, economic, environmental, social, cultural and technological trends
that affect the space you are in?

 What are the key issues facing customers in this space?

 Who are the key stakeholders?

 Who are the analyst firms, analysts, journalists, bloggers and conference presenters that talk about
relevant issues and technology?

 What are the main conferences and events?

 What are the main media outlets that keep people informed about the industry and its technology?
Interview guide

On the basis of the information in the previous checklist and the assumptions
described in slide #5, prepare the questions and issues to address in your
interview guide:
After testing your assumptions

EVALUATING AND UPDATING

INFORMATION
Activity 6: Evaluate market feedback

Evaluate the results of your test.

• Is the market problem urgent? Will customers care if the problem is not
solved? Do they have another way to solve this problem?

• Is the market problem pervasive? Determine if the identified market problem

applies to a significant percentage of your desired target market.

• Will your buyers pay to have this problem solved?

• On the basis of the answers to the above questions, which direction should
you take?
Activity 7: Update your problem statement

Write a brief description of the specific problem your target customers face, as well as
the impact of the problem and its pervasiveness. Include the following
information:

• The objective of their work: What are they trying to achieve?

• How they perform their work
• The problem they face
• How the problem impacts their objective
Activity 8: Create your initial target customer list

Create a list of target customers on the basis of the customer interview.

Activity 9: Create a day-in-the-life scenario
Address the following points to create a day-in-the-life scenario.

No. Question Answer

1 Who is the target customer? Personify

your target customer: give them a name,
an age, a gender and a job description.
Imagine them as a real person with real
problems.

2 What is their objective? What are they

trying to do?
3 What challenges are they facing in
pursuing those objectives?

4 What is the economic impact of not

achieving those objectives?
Activity 9: Create a day-in-the-life scenario (cont’d)

No. Question Answer

5 Imagine the customer using your

product. What are the qualities or
capabilities in your product that allows
the customer to change/overcome their
challenge?

6 In what way do those capabilities affect

the customer’s ability to achieve those
objectives?
7 What is the measureable benefit for the
customer of achieving those objectives?
Activity 10: Describe your product vision

Write a statement that describes your product vision, which identifies one or more of
the following:

• Your target customers and their problem

• The product solution you are making
• How the user goes about their job and will use the product solution
• Customer outcomes and benefits
• Three- and five-year scenarios for your product and company
Activity 11: Create the MVP

Describe the key aspects of your MVP for which you are currently seeking market
feedback.
Activity 12: Test the MVP

Answer the following questions after testing the MVP.

• Is our understanding of the customer problem accurate and relevant?

• Does the MVP solve the customer’s problem?

• Does the product solve the problem better than a viable alternative currently on
the market?

• Would they use the product? Can they imagine the product as part of their
everyday life?

• What is their primary concern about buying and implementing the product?
Activity 12: Test the MVP (cont’d)

• How much would they be willing to pay for the product?

• What process would the customer employ when deciding to buy such a product?

• Who is involved in the decision-making process?

• Whose budget will the funding come from?

• Who will be the users of the product?

Activity 13: Take the next steps

Ask your team to help you answer these questions.

• Has the customer problem been verified?

• Has the product solution been validated?

Activity 14: Create your value proposition

Use the following template to create your value proposition.

For (target customer)

Who is looking for/challenged with (describe specific problem)

We have developed (type of solution, maybe a word or two about how it works [e.g., fast-
working, easy-to-use, cost-effective])

That helps/generates/creates/saves/improves (or any other benefit)