Lesson 1: Why Most Businesses Fail (and How to Avoid It)

If you read my last email, you know I kicked off a new series where I’m breaking down the 10 biggest lessons that took me from making $800 a month to $1,000,000 a month in profit. If you missed it, go check it out [here]. But if you’re caught up, let’s dive into lesson #1:

And just one note, this the single most important lesson my business mentor Matthew Stafford from Build Grow Scale taught me. I have always said that I am a product of my mentors and close friends, so I give credit where credit is due. 

The Unique Value Proposition (UVP)

I’m going to tell you something you probably already know: most businesses fail. No surprise there, right? 

But here’s the kicker: most of the advice out there is garbage, regurgitated nonsense that everyone is doing. 

And yet only 5% of businesses ever succeed. Even fewer cross $1M in annual revenue, and almost none break the $10M mark.

I’m on track to do $30-33M USD this year, and I’m not saying that to flex, but to make a point: What I’m doing is different.

So, what’s the first thing that sets successful companies apart? 

The Unique Value Proposition. It sounds like marketing fluff, but it’s not. A UVP isn’t a catchy slogan like Nike’s “Just Do It.” 

It’s the core reason why customers choose you over the 10,000 other options out there. 

It’s the *hing that makes you different, even if it’s subtle. 

And it’s essential, because in a world drowning in copycats, different is the only way to survive.

Why It Matters and How It Works

Think of a UVP like this: it’s the promise you’re making to your customers that your competitors can’t or won’t. And here’s the tricky part: it’s not something you can pull out of thin air because it needs to come from your customers. 

The best UVPs resonate subconsciously. If you’ve done it right, your customers won’t even be able to pinpoint why they trust you more; they’ll just feel like you “get” them.

Another important point? A good UVP is exclusionary.

It’s designed to attract your ideal customers while pushing everyone else away. 

If your UVP is appealing to everyone, it’s too broad and will fall flat. And remember, as your business grows, your UVP should evolve too.

Let’s look at some real-world examples.

The Power of a Strong UVP (And Why Most Brands Screw It Up)

Take beauty brands. Fenty Beauty and Kylie Cosmetics: two celebrity-owned powerhouses, both wildly successful. 

But here’s the thing: neither has a clear UVP. Take a look at their homepages:

Here is Fenty:

And here is Kylie Cosmetics:

If you strip away the celebrity associations, why would you pick one over the other? 

Answer: you wouldn’t. 

Their only differentiator is affiliation: if you love Rihanna, you’re going Fenty; if you idolize Kylie, you’re buying her stuff. 

Note: Affiliation is powerful. Maybe the biggest driver of sales, so I will not take away from it. In fact, one of my future lessons on this series is Strategic Affiliation. So stay tuned for that.

Compare that to a smaller brand like Well People. 

Their UVP? “Makeup on the outside, skincare on the inside.” 

It’s not flashy, but it tells you exactly who they’re targeting: health-conscious women who want beauty products that don’t compromise their skin. 

With one sentence, they’ve built trust with their target audience and alienated everyone else who couldn’t care less about plant-based ingredients. 

That’s what a good UVP does.

Real-World UVP Example: Bars and Nightclubs

Let’s say you want to open a bar in Boston, a big college town that also has a pocket of very wealthy people. You’ve got two options:

1. Go after the college crowd. Cheap beers, simple food, and sticky floors are your bread and butter. You’re not worried about high margins because you’re making up for it in volume. But you’re going to scare off anyone looking for something nicer.

2. Target the high-end, older clientele. Cocktails are $15 a pop, there’s a dress code, and you’re charging for bottle service. Fewer customers, but much higher spend per head. Now you’re isolating the student base but attracting people willing to drop serious cash.

Both strategies can work, but the success of each one depends on leaning into what your customers value and being okay with alienating the rest.

How to Create Your UVP

If you’ve been running your business for a while, your customers have already told you what your UVP should be. 

Go back and read their emails, reviews, and comments. Ask them why they bought from you, why they almost didn’t, and what finally tipped them over the edge. 

Offer them a small incentive to respond, anything to get genuine feedback.

If you’re just starting out, ask yourself: what would make you pick this product or service? What’s the one promise that would make you think, “Yep, this is for me”? That’s where you start.

Final Thoughts

I’ll be blunt: if you don’t nail your UVP, you’re just another name in a sea of competitors. 

No amount of marketing, ad spend, or influencer shoutouts can fix that.

 Figure out your UVP first, then everything else becomes easier.

This is just lesson one. There’s a lot more coming, so stick around for the next 9 weeks.

Till next time,  

-Vessal

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