Define your business proposition

Your business proposition is the answer to three questions: what does your business do, who does it serve, and why should anyone choose you? If you cannot answer these clearly and concisely, neither can your customers.

A strong proposition is the foundation for everything else — your business plan, marketing, pricing, and sales conversations. It is worth spending time getting this right before you launch.

Working through the framework

Start with the problem

The strongest businesses solve a clear, specific problem. Not 'we make nice things' but 'we help independent restaurants reduce food waste by 30% through smart stock management'. The more painful the problem, the more customers will pay you to solve it.

Talk to potential customers about their frustrations. What takes too long? What costs too much? What do they wish existed? Their language should appear in your proposition.

Define your target customer

Trying to serve everyone means serving no one well. Be specific about who your ideal customer is:

• If you sell to consumers, define their age, location, income, lifestyle and the specific situation that triggers their need for your product or service.
• If you sell to businesses, define their industry, company size, the buyer's job title and the business problem you solve.

You can expand your target market later. Start narrow, dominate that niche, then grow.

Articulate your USP

Your unique selling point must be specific and defensible. Avoid generic claims:

• Instead of 'We provide great customer service', which everyone says, try 'We guarantee same-day response to every enquiry, with a named account manager for every client'.
• Instead of 'High quality products', which means nothing without context, try 'All our furniture is made from reclaimed British hardwood with a 25-year guarantee'.

Your USP should be something competitors cannot easily copy. Price is rarely a sustainable USP — someone can always undercut you.

Testing your proposition

Before committing, test your proposition with real potential customers:

• Can you explain your proposition to a stranger in under 30 seconds and have them understand it? If not, simplify.
• Would a customer hearing it say 'so what?' If so, you have not made the benefit clear enough.
• Could a competitor make exactly the same claim? If so, your proposition is not different enough.
• Can you back up your claims with data, testimonials or demonstrations? Claims without evidence are just opinions.