3 Value Proposition Formulas for Your Business

How to make your business stand out from the crowd

Zoe Chew
4 min readMay 31, 2023

This post is one of my 🔥Multi-Part Product Guide series. You may also like my top-rated guides such as — Validate Product Opportunity, Minimum Viable Market, and Profitable SaaS Ideas. ✍️Join my free newsletter to receive these insights!

If you’re struggling to explain your SaaS or digital products concisely, this post is for you. Today, I’ll share inspirations for creating compelling value propositions that help customers understand the value of your solution and increase the chances of conversions.

value proposition

Formula #1: “X but for Y”

One easy way to communicate your USP is by leveraging the reputation of well-known products and positioning your offering as an alternative solution.

You can borrow the business models or mechanics from successful brands, and introduce your product in a way that addresses a specific niche or solves a particular problem.

Example: Tinder for canceling meetings

Cala helps people avoid unwanted meetings through group voting. If every invitee to a meeting swipes left, indicating their disinterest or unavailability, the meeting will be automatically canceled.

Example: Y Combinator of Web3

Seed Club, a crypto or DAO-focused accelerator, effectively communicates its unique value proposition through its Twitter bio: “Make something people want to be a part of.

Formula #2: Better, Faster, and Cheaper

The goal is to demonstrate how your solution outperforms competitors in terms of quality, efficiency, and price. Here is how to think through your USP formula:

(1) Quality:

Focus on the enhanced user experience, reliability, durability, or any other aspect that contributes to a higher-quality solution. E.g. “Data analysis but 200% more accurate using machine learning.”

(2) Speed:

Focus on time-saving features, streamlined processes, or reduced effort that your solution provides. E.g: “We are the product studio that builds your MVP in weeks, not months.”

(3) Cost-effectiveness:

Focus on lower upfront costs, reduced long-term expenses, or enhanced return on investment. E.g. “We reduce 30% of unnecessary expenses.”

Example: Get acquired in 30 days not months

Microacquire is an online marketplace for entrepreneurs looking to buy or sell a business. The platform offers a vetted startup directory, key financial metrics, and due diligence experts to ensure a smooth and secure transaction process.

Example: MBA in 31 days

altMBA condensed 25 years of experience into a leadership training program delivered in the form of cohort-based live courses in which students can access live mentorship, workshops, and educational resources.

Formula #3: The “Without” Clause

Emphasize the absence of certain pain points or drawbacks that are commonly associated with existing solutions in your industry.

By highlighting what your competitors can’t solve, you can position your product as a superior choice.

Here are a few ways to think through this formula:

(1) Solving long-standing industry problems:

Show how your product solves problems that have been plaguing businesses or consumers for years. Think about industries in healthcare, banking, and construction.

(2) Free from the status quo:

How things have always been versus how your products are different. For example, how to break free from outdated practices and offers a fresh perspective that challenges traditional norms.

(3) Unexpected surprises:

Demonstrate how your products can alleviate the burden of unexpected surprises by emphasizing the absence of certain risks such as unexpected expenses, workflow disruptions, and chaotic experiences.

Example: Search engine without risking your privacy

Presearch is a decentralized search engine that prioritizes privacy and delivers high-quality results. The platform also rewards users and node operators for their engagement and contributions.

Example: Insurance without the wait

Lemonade’s tagline “Sign up in seconds, get paid in minutes,” perfectly encapsulates the unique solution of their insurance platform.

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Zoe Chew

Building things on the Internet at Venturescale.to & Rapidmvps.com. Here I share my learnings as an entrepreneur, writer and creator.