Thou shalt build a business around your valued market differentiation
I’m Linda Feinholz and my mission is to help business owners create self-sustaining businesses even if the owner is absent.
Let’s talk about you and your business model for a second. One of the big mistakes I find that businesses make is they copy somebody else’s business model.
When I first got started in business everyone said “watch your competitors and make sure you match them!”
The only role model I had for this kind of business were the successful companies in my own industry. But here’s what I uncovered. All that talk about ‘best practices’ that everyone is supposed to match in their industry resulted in nothing but look-alike companies. And that meant customers would price shop for the lowest price, and it was a race among all the competing companies. A race straight to the UN-profitable bottom!
Maybe you’ve seen it in your own industry?
Turns out someone else was doing a lot of research on this. John Warrillow who wrote the book Built to Sell.
Through his research with 1,000s of companies across industries, he uncovered what he calls Monopoly control.
To set yourself apart from your competitors and attract customers who value it, there are 3 elements to what John calls Monopoly control and Warren Buffet calls a moat, like the zone around a castle.
First, you need to build a business model that plays to your strengths. What do YOU know. What can you and your business EXCEL at?
Second, you need to differentiate from your competitors rather than matching them. If they all say “we zig!” Then you need to figure out how to truthfully declare that you ZAG! And you need to keep announcing it publicly loudly, over and over, so that you’re known for it.
How do you identify what your customers find different about you and your products or services? The ONLY way to know it is to actually speak with them. Above and beyond a stale survey, this means get on the phone or in person with them live and interview them. Get to know them, their concerns, what they really wish someone would solve as opposed to what you are in the mood to solve.
Why is this worth the effort? THIS is where the hidden gems your competitors don’t know about will be uncovered. And you’ll know what your customers really value!
Third, you need to charge a premium for your products and services in line with that differentiation. The reason that’s critical is premium pricing gets you premium profits… AND those profits let you spend much more than your competitors in your marketing that keeps reinforcing your differentiation.
Dan and Diane are perfect examples of this. Everyone in their industry provides low cost ‘mow blow and go’ air conditioning duct cleaning, one client sale at a time. So Dan and Diane figured out to position themselves as creating healthful environments. They have ongoing contracts with large scale building developers, commercial properties, and luxury homes. And their message is marketed through completely different channels than those low end services.
Trying to MATCH your competition’s business model can be a little bit like wearing somebody else’s underwear. At first it’s a little bit awkward, then uncomfortable and finally leaves you full of shame and regret that you actually did it.
So I stepped out of the loser’s rat race and sat back and looked for another approach in my business and my client’s companies. What you need to do is find out what sweet spot you can claim and do it whole heartedly!
If you want to set your company apart, increases its value above everyone in your industry, take a look at the 18-minute webinar and other strategies you’ll find at OnDay91.com/advantage – And if you know another business owner, hardworking and smart and frankly could use the steps for their business, share it with them as well.
I want to help as many people as I can find to get their business a durable competitive advantage through creating valued market differentiation and more stability and freedom.
Talk to you soon.
.
P.S. Whenever you’re ready… here are 4 ways we can help you stabilize and grow your business:
1. Grab a free copy of our Guide and Checklist
It’s the roadmap to creating a stable, scalable, valuable business that is so healthy you could be absent for ninety days and it would continue to thrive. — Click Here
2. Join the On Day 91 group and connect with business owners who are resetting and scaling too
It’s our new Facebook community where smart business owners learn to get more control of their business, value for their company, and freedom in how they use their time. — Click Here
3. Join our Momentum Program and be a Case Study
We’re putting together a new case study group at On Day 91 this month… stay tuned for details. If you’d like to work with Linda on your business-pivoting and growth plans… just send her a message with the words “Case Study”. — Click Here
4. Work with Linda and her team privately
If you’d like to work directly with Linda and the On Day 91 team to take you and your business to it’s next level… just send Linda a message and with the word “Private”… tell her a little about your business and what you’d like to work on together, and we’ll get you all the details! — Click Here
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