What is a value proposition? Why do they matter in general, and why do they matter specifically regarding SBIR? These are some of our most common questions from clients.
#1. What is a value proposition in general
The official definition of a value proposition is “an innovation, service, or feature intended to make a company or product attractive to customers.” Value Proposition is a marketing term designed to allow companies to succinctly express to investors why they need a product or service. It is the “why” behind the intended desire for customers to buy from you. The value proposition is what differentiates you from competitors within your industry space.
#2. What is a value proposition in SBIR
It is important to understand what a Value Proposition is before you apply for SBIR. That way, your value proposition shines through in your application. If you know a Value Proposition is intended to make a company or product attractive to customers, and you know as an applicant to SBIR that the federal government is your customer, then it stands to reason an SBIR Value Proposition must entice the federal government to choose to fund your product over others.
#3. How to create a winning Value Proposition for SBIR
Remember that the federal government is an investor as well as a potential customer and that the success rate for these proposals is only 7-20% depending on the agency. This means that in terms of other applicants, there are many competitors, and there are likely several in your industry of expertise. To write a winning Value Proposition for SBIR is a twofold effort.
Firstly, you must explain how your solution is better/cheaper/faster than other market competitors. Secondly, you have to illustrate why your product would be more marketable to customers than competitor products (read: how the federal government will get a return on investment from funding you). This is no easy task and will require a bit of market research and customer discovery activities. Many clients also benefit from the added guidance of funding subject matter experts like the team at E.B. Howard Consulting.
We work with high-growth startups and organizations that support the startup and innovation ecosystem. We build highly specific non-dilutive funding menus, provide proposal preparation services, and measure outcomes of funding through evaluation. Schedule a consult call with us HERE.