Now that we know what a value proposition is, what's the point? What can we do with it? I'm gonna address that right now in this section. So the first point I want to make is you can do a lot with it. It's the core of your company, it's it's like the spine or the DNA of all of your business processes. If you're not producing value, you're not going to have a process that lasts very long.

So let's start there. It's very important that you be able to articulate it, define it, and then do stuff with it. So now we're going to talk about the stuff we're going to do with it. The first category is reducing costs and increasing output. Well, this may not seem completely overlapping with like, how does my value proposition help me reduce costs and increase output? Well, the trick to it is, you need to know what your clients are actually buying.

Because then if there's any other activities in your processes that aren't helping contribute to that. They're called waste. The definition of waste and process management is activity that does not create value. So if you can't clearly articulate your value proposition to yourself or others, then it's going to be very hard to manage your process elements where you're spending time and you're acting and you're spending energy to say, well, is that useful or not useful, if you don't know your value proposition, you don't know what the value the clients are actually buying from you, it's going to be very difficult to differentiate that. So if you're talking about managing your processes to reduce costs, and increase output, reduce cost of what activities, the non value adding ons and increase output of the value adding ones. So just to kind of tie that together as an example, if you had 10 activities, the core process activities in your company, and you knew that only three, were adding value, you want to bolster those and try it as much as you can cut the other seven out.

That's how you're going to do this. And that's why the value proposition is very helpful to achieve that. Planning for growth is the second category. This is another thing where for those of you who are thinking about expanding your business, or maybe hiring a few more people or adding a different product or experiment Well, how do you do that? everything, every company that evolves, they evolve from a baseline, they iterate from where they are today, in a safe way, they don't just go from, let's say, being a wolf to being a sheep overnight, you can't fundamentally change the nature of your business, or your core competencies or your core strengths. And ultimately, that's to say, you don't want to move away from your core value proposition, the clients already buying that from you and giving you money.

So you can run that process to give them certain value. If you make a new product. If you make a new strategy, and you move too far away from your value proposition, you're going to be taking a huge risk. So a lot of companies that are doing success, and they're doing very well. They're wondering, where do we go next? What's the next step?

Knowing your value proposition is going to help you align business strategy and plan for profitable growth? Because you definitely want to always plan to iterate over time from where you are now, not just go in random directions or take risks with your business. Client communication is the next category. If I'm trying to sell value to clients, what do you think the easiest way is to do that? Tell them directly what you're selling. That's the easiest way to have that conversation.

Don't make them figure out what's valuable about your product. You don't want them to be guessing from, hey, I'm selling this really cool widget or it's green, or it's black. And you'll love this. That's probably not the value people are looking for, depending on what it is they're looking for. It could be, but that's the whole point. You don't know until you know and when you do know, tell the clients directly and see if it speaks to them speaks in a language where they know what value they're buying from you.

And that way, they're more likely to have a transparent relationship and they know what they're getting and why they would engage. And that falls in the last one which is marketing and sales, which is if you can actually through language through interactivity through how you kind of deal with or communicate with your clients. Let them know what is the value Why are they engaging with you? What are they buying from you And then kind of rolling that into a strategy around how you would increase revenue and increase clients use the value proposition is the core of your marketing and sales strategy and initiatives. So those are the four main categories of what do I do with my value proposition and why it's so important to build one. So then we'll kind of move on next to talk about more basic principles around value propositions and value usage.