1. Microlending Academy Peer Discussion
OFN: Building a Value Proposition

2. Today’s Agenda Review key points from OFN webinar
Review some of their suggestions
Discuss
Give feedback on role or services CAMEO could provide

3. Today’s Questions Why do you need a Value Proposition?
How would it help you?
What is a Value Proposition?
What are some ways to develop one -- or several?
Would you like help with this process?

4. Business Model
A business model describes the rationale of how an organization creates, delivers and captures value.

5. Business Model Obsolete
Many businesses decline because the assumptions that inform their fundamental business decisions -- about society, markets, customers, products, technology, mission -- become obsolete or invalid.
Peter Drucker

6. Business Model Invisibility
Why is it so difficult for companies to pull off the new growth that business model innovation can bring?
Here’s why: They don’t see their current business model well enough to know if it would suit a new opportunity or hinder it, and they don’t know how to build a new model when they need it.
Harvard Business Review

7. Business Model Generation
Alexander Osterwalder and Yves Pigneur

8. Benefits of Value Proposition
Increased Sales
Deliver the right message to key audiences, leaving partners and clients clear about you, your products, your value
Use resources (time, people, money) effectively, leading to increased deals & impact

9. Benefits of Value Proposition
Cohesion
Cohesion creates efficiency, team work, clarity. Having staff going off in different directions creates muddle
Self Sufficiency
Clarity allows you to hone or redesign your business model to improve self sufficiency and impact

10. What is a Value Proposition
A positioning statement that explains what benefit you provide for who and how you do it uniquely well
It describes your target customer, the problem you solve, and why you’re distinctly better than the alternatives
Must reflect the mindset of the customer
The more specific the better

11. Value Proposition Mad Lib
For (target customers)
Who are dissatisfied with (the current alternative)
Our product is a (product features)
That provides (key problem-solving capability)
Unlike (the product alternative)

12. What are you best at -- compared to banks, credit cards, MCAs

13. Identify Customer Segments
You probably have 3-7 customer segments
Who are you creating the most value for?
Which customers are creating the most value for you in terms of sustainability, impact and mission?
What customer problems are we solving?
What is the best language to use with them?
What kind of relationship do we want to have w. them?

14. Montana CDC They have seven customer segments Unbankable start up
Nearly bankable start up
Partially bankable start up
Nearly bankable existing
Partially bankable existing
Business Purchase
Community Facility

15. Accion New Mexico
We offer the most competitive combination of speed, pricing and terms by evaluating our client’s business as a whole, matching loan terms to use of funds and determining a healthy debt structure for our clients. We provide a community of support if you need it.

16. How did Accion NM create it
Held team meetings with staff to identify issues, strengths, weaknesses
Compared product, service, process to the competition
Brainstormed words, phrases to best state valued offered
Compiled draft of value proposition
Did role plays until everyone could deliver value proposition comfortably

17. What Do You Think? Would it help to create a value proposition?
Could CAMEO help in some way?
Have we clearly identified our Customer Segments?
Have we developed a Value Proposition for each customer segment?
Have we engaged staff so they can easily, comfortably state our value to each customer segment?
Does our value proposition align with our business model?

18. Thanks!!