How To Define Your Value Proposition

Define Your Value Proposition

How To Define Your Value Proposition

Your ability to define your value proposition can set you apart in your current role or in your career search.  In short, your value proposition is what are you worth to an employer?   The answer is most likely entirely different than your annual wage.  Instead think about the value you add to your employer.

If you are an employee for someone else, you should constantly be tracking your success and defining the value you bring to your employer.  Strategically demonstrating your value could help your boss justify your role and could also lead to your next promotion.

Defining your value is also a major step in preparing to find your next job.

How To Define Your Value Proposition

As you start to define your value proposition, think about your experience and your successes.  Remember, your value is determined by what you do for the company.  You either make money, save money, or reduce/manage/eliminate risk.

The key is to quantify your results.  The better you can demonstrate your ability to contribute to the bottom line, the better your value proposition will be.

If you are in sales, your value proposition might be the profitability on the annual total of your sales.  An operations employee might re-design a process that saves time during production. The old saying “Time is money” is true.  Efficiency gains translate into cost savings through a reduction of labor.

Value Proposition Example

As an example of how to define your value proposition, let’s pretend you are in sales.  You sell computerized industrial equipment at a cost of $300,000 per machine.

You rarely discount your sales price and maintain a margin of 20% for the company.  On each sale you make, the company makes $60,000.

Don’t stop there though… You sell 30 machines per year totaling $9 million.  Given the 20% margin, your net contribution to your employer is $1.8 million!

Now you’re getting the idea, but go one step further and assume you will work for this company for 7 years and sell 30 machines every year.  Your total sales in those 7 years is 210 units at $300,000 each.

In that period, you will bring $63,000,000 in revenue to your employer.  With the 20% margin you hold, you will add $12,600,000 in profit over 7 years.

The total revenue and profit is your quantified value proposition.

Promoting Your Value

After you define your value proposition, you need to promote yourself.  Do this strategically with humility and grace and you will always be able to justify your employment.  In a job search campaign, you want to promote your value proposition to stand out from the crowd.

The tools you will use are your sales brochures (aka: resume and LinkedIn Profile), your success stories and your networking strategy.

Based on our example above, write your resume and LinkedIn profile as if you are promoting a multi-million-dollar product.  In fact, this is exactly what you are doing because of your multi-million-dollar value proposition.

Develop a series of “3C Stories” that illustrate and quantify your success and further demonstrate your value.

Use your resume and 3C Stories during your networking meetings.

Create a networking strategy to leverage your value proposition to find opportunities with your current or prospective employees.

Putting it all together

When you clearly define your value proposition and articulate it through your strategic networking plan with memorable 3C stories, you will separate yourself from your peers and other job candidates.

About Noel Watts

Noel Watts is the owner of Compass Consulting, LLC which provides strategic and operational consulting as well as contract staffing throughout the United States. Noel has more than 20 year of experience with a documented history of success in leadership roles in sales, operations and strategic planning. Noel is passionate about personal development, coaching and mentoring. As an online entrepreneur, Noel started dreamjobstrategies.com as a way to help people realize their lifestyle goals by finding their dream job. Noel is available for private and group coaching sessions and speaking engagements.
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