galatime.com - Kaushik Gala

Note: The views & opinions expressed in these essays are strictly my own, and not those of any entity I may be associated with as an employee, consultant, promoter, investor, etc.

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Pune

› Technology Venture Investors in Pune

 

Technology Entrepreneurship in India - Teams

› Entrepreneurial traits

› Picking cofounders

 

Technology Entrepreneurship in India - Generating Revenue

› Is your business model well-defined?

› Your industry's value chain

› What is your value proposition?

› Which distribution channels will you use?

› Who will drive business development?

 

Technology Entrepreneurship in India - Raising Capital

› Venture capital & venture capitalists (VCs)

› Corporate venture capital

› Angels & angel networks in India

› Government support for Indian startups

› Proof-of-concept funding

› Do you need a business plan?

› How much money should you raise?

› Startup valuation

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› Negotiating with investors

› Due diligence - A necessary evil

› Time to sign the investment agreements

 

Equities, ETFs, F&O

› Oct 2011: Equity Risk Premium for India

› Jun 2011: Investing in Indian equities

 

Technology Enterprises in India

› Nov 2010: Technology investment in India - WATER

› Aug 2010: Technology enterprises in India - 3 avatars

 

Risk Capital for MSMEs

› Mar 2010: Risk mitigation for investors in MSMEs

› Mar 2010: Why don't (Indian) MSMEs get risk capital?

› Feb 2010: Angel investing - Will it work for Indian MSMEs?

› Feb 2010: What's so special about innovative MSMEs?

› Feb 2010: Where do Indian/NRI (V)HNIs invest?

› Feb 2010: Funding options for innovative MSMEs in India

› Jan 2010: Innovative MSMEs in India

What is your value proposition?

(Last revised Apr-2012, Send comments to galatime@gmail.com)

To be a successful entrepreneur, you need to make and sell something that people want. As simple as that sounds, most ventures do not have a value proposition - a clear, compelling reason for why customers will buy their product or service.

Usually, people and enterprises buy a product/service because:

  • It is cheaper, faster, better
  • It enables them to create wealth
  • It upgrades the quality of their life
  • It provides a novel, positive experience

Unless you can articulate how your product/service does one or more of the above, your venture probably does not have a value proposition ('VP').

A strong value proposition describes what you are selling, how it addresses your customers' need, how much it helps (e.g.: increases revenue by x%, reduces cost/time by y%, etc.), and reliable proof that all of this is actually true. Your VP should be captured in not more than 3 sentences.

Tools

Perspectives