Many first time entrepreneurs get tripped up on the positioning statement portion of their business plan and how it differentiates from their value proposition. In this blog post, we will tell you just how to write a positioning statement. Please refer to the following links for instructions on how to write a value proposition and the difference between a value proposition and positioning statement.
What is a Positioning Statement?
Let’s start by making sure we all understand what a positioning statement actually is. A positioning statement is a one or two sentence statement that articulates your product or service’s unique value to your customers in relation to your direct competition. It explains why your customers should purchase your product or service over that of your competitors.
How to Write a Value Proposition?
A good positioning statement includes five primary components:
- Your target customer – a clear description of the core group to whom you want to appeal
- The frame of reference – the category in which you compete
- The key benefit – often the feature that differentiates you from the competition
- The reason to believe – your ability to deliver on your promise.
For (target customer) that seek (frame of reference of product category), (product or service name) offers (key benefit) that/because (reason to ).
For example: “For entrepreneurs that seek a professional business plan writer, The Startup Garage offers customized, investor-ready packages because our consultative approach, business experience and industry knowledge allow us to identify your goals and put together a plan to accomplish them.”