What Makes Your Business Special? (It’s Probably Not What You Think)
Most business owners can’t clearly articulate what makes them different from the competition. Frazer Mackay explains why defining your “What” is the hardest, and most important, step in building a successful business.
Think about your product, service, or good idea, whatever it is you’re trying to do.
What is it that makes you special? What are you really good at? What do you do better than the competition?
This is the first question you must answer before you can build a successful business. And I’ll warn you now: it’s not easy. I’ve seen seasoned professionals in tears when they realise that something they held dear was not as important to the customer as they had convinced themselves it was.
Your Business DNA
I don’t use the term “Unique Selling Point” (USP) because what makes you special is rarely unique. Others might be doing something similar, but not doing it as well as you. This is your “thing.” Some people would call it your business DNA.
Take a few minutes to think about and write down the answer to this question. Then go back and look at your answers and cross out the ones where you’ve been generous to yourself. Do this as many times as you need until you have a succinct description of what you excel at that others can’t match.
But Here’s the Reality Check
Before you panic, it’s not essential to be the best at something. Obviously, it’s helpful, but if you don’t have a differentiator, then you need to accept that you are selling based on price and/or convenience.
Let me give you an example:
Imagine two coffee stands on opposite sides of the same street. The coffee tastes exactly the same. But one stand is closer to the subway exit. That stand can sell coffee at a higher price because many people would rather pay more than cross the street to save a little cash. They’re offering convenience.
The stand on the other side has to sell cheaper if it wants to attract business from cost-conscious buyers who are willing to cross the street to save a few pennies. They’re in a price competition and require higher volume sales.
There’s nothing wrong with servicing that demand. Just don’t lose sight of the fact that your business is based on satisfying those two things. Keep your overheads down and your customer service up.
But What If You Have Something Special?
Many businesses do have special or advanced products/services that they deliver in a particular way, or perhaps intellectual property that nobody else can match. These businesses have something to offer that their competition cannot. They can position their product/service based on a form of quality or service provision that others cannot achieve.
This means they can claim to provide a “better” service or product and charge a premium for it.
If people can see value in something, they will often pay more for it. If people believe that something offers higher quality, they will accept that they have to pay more than for the lower-quality option. Why else do people buy Rolls-Royce motor cars rather than standard four-door saloons? Quality demands a premium.
The Hard Part
Defining what you are truly good at is the hardest part of this whole process, and that is why we start here. It’s the realisation that you have been focusing on the wrong aspect that creates the emotion.
Are you open to change? Can you be honest with yourself?
To properly understand your business, you need to change the fundamentals. Wishful thinking is not a strategy or a plan. Sometimes that unique feature is blindingly obvious. Often, it takes a lot of soul-searching to understand. Soliciting an impartial third party to give some support might be beneficial.
From Definition to Purpose
At the end of this challenging process, you should be able to say: “This business is special because it…”
You now have an elevator pitch, that’s a massive step forward. Well done!
Once you understand what makes you special, and that belief is shared throughout your organisation, you can begin to sell that concept externally. You now understand the DNA of the business. You can build upon that and protect your weaknesses.
I also suggest that you turn this differentiator into a purpose: “Our business is here to do XXXXX for you.” Make it feel personal. Make it feel as if whatever your “thing” is, it was designed specifically for that user.
The Power of Clarity
The power of this simple understanding of “What” can be hard to develop, but its impact is immense. With it, you should be able to make people appreciate you. Its effectiveness is a function of its accuracy.
“We provide a service/product that is better because of XXXXXX.” Don’t mention price; that will come out in due course. Focus on the value it brings to the customer.
This Is Just the Beginning
Once you know your “What,” you’re ready to tackle the next question: “Who?” But that’s for another blog. For now, spend the time to define what makes you special. It’s the foundation everything else is built on.