“Unicorn.” If you read the business press these days, it is a term you simply can’t avoid. The analogy of a mythical creature to describe a very real phenomenon — the startup that has reached a valuation of at least $1 billion.
So what makes or breaks a startup? Why do some succeed magnificently while so many simply fizzle out?
There are many answers to that question, but one key element that unicorns have in common is an effective value proposition. On the flip side, venture capitalist David Skok wrote that one of the reasons startups fail is, “There is not a compelling enough value proposition, or compelling event, to cause the buyer to actually commit to purchasing.”
To help you create an effective value proposition, MECLABS Institute (parent research organization of MarketingExperiments) has created the Value Proposition heuristic. This patented heuristic is a thought tool, meant to help you optimize the factors that increase the force of your value proposition.
One key element that helps create a successful value proposition is the exclusivity of the product or the offer (denoted by “Ex” in the heuristic).