BE ENTREPRENEUR: How To Differentiate And Rise Above Competition

 

How To
Differentiate And Rise Above Competition

 

The Secret to differentiating your self is not to change the mirror but to change yourself

One of the biggest challenges any business faces irrespective of the industry it serves is – How to differentiate itself from the other players in the field. Firstly, is it necessary to differentiate oneself? Why not just make and supply what others are doing?

Most of the entrepreneurs are knowingly or unknowingly doing the same thing year after year. They don’t take pain to differentiate themselves from their other manufacturers or service providers. In fact, most entrepreneurs don’t even think about it. They are just giving one more option to the same customers, and that option is to buy from them at a cheaper price. The consequence that results is - Instead of helping them grow as an individual organization and as an industry as a whole, what this strategy does is creates a price war between the manufacturers and service providers thereby commoditizing the entire product. Then the only thing one can hear them saying is – ‘there is too much competition in the market.’

So, what is the other danger of not differentiating ourselves from other players?

If we do not differentiate ourselves from other players soon we will be struggling to make our ends meet without earning any huge profit for the company and for ourselves.

If differentiation is one of the keys to higher growth then why is it that very few businesses implement it?

The biggest reason that comes forward is that building differentiation in the marketplace is a slow process. It requires a lot of patience from the entrepreneur to take his organization through this process, and in today’s fast-paced world even entrepreneurs want to see the results instantly. When they don’t see the results they think it is not working and they give up on the process of differentiation.

But the customer is always looking for that differentiating factor in every product or service that they buy. Today they have more choices than there is a demand, they want a convincing answer from you – Of all the choices available to them why should they buy from you?

Today for any business differentiation is no more an option. It is a necessity for survival.  You cannot say that you will think about being different. It is now or never! Even if you have differentiated yourself it has to be easily visible. Your customers will not think about buying your product if they don’t find or have to struggle to figure out how different your product is from the other players in the market.

Most of the entrepreneurs when asked How is your product different from your competitors; are not in a position to give the right answer. Every time you ask they may have a totally different answer. Every time they are struggling for the right words. It is evident that they have just started thinking about it and so are finding it difficult to explain. If you analyze the market you will notice that most of the entrepreneurs are offering age-old services and yet are boasting highly about being different. They don’t realize that differentiation is not a big claim that any organization makes about its products, it is something that shows and is evident in the eyes of the customer.

This gives you and your business an opportunity to fill that gap and create a memorable space in the minds of your customers regarding your product or service.

So, how do you as an organization differentiate yourself and rise above your competition?

I would like to put forward 3 questions that you need to ask yourself to put together your differentiation strategy.

 
1. What is your line of attack?

 

What is that special process you follow in doing things? When you see a gap in the market that can be converted into an opportunity before you decide to fill the gap think – what is the method that I will follow to fill that gap? Following this method can my organization fulfill the market demand?

If you have the right process in place, you will always give predictable results to the market. Customers want predictable results from your organization. For example, if your business is selling pens and you decide to launch pencils then your customers will expect the same or better quality compared to your pen. So you as an entrepreneur will have to decide on a process that you will use to manufacture the pencils that will be at par with your other offerings. Don’t shock your customers by being unpredictable in your methodology of doing things.

 

2. Are you continuously innovating?

 

Are you continuously designing the ways and means to do the same work in a much better manner? What new things are you doing today in your business?

If you have answered these questions satisfactorily then congratulations, you are on the path of differentiating yourself from the competitors.  If not then it is time to put on the innovation cap and get to work. In today’s competitive world you have to do three things differently -

· Think

· Act

· Deliver

If you cannot think innovatively, train your mind by reading or attending that seminar that will help your creative juices to flow and come out with newer ideas. You just cannot ignore being ignorant about things that you don’t know.

In addition to building cash capital today, it is also important to build upon an organization's intellectual capital. This intellectual capital will guide any organization in continuously developing innovative processes that will lead to better products and a great service to the customers creating that ‘wow factor in their life.

 

 

 

3. What does your brand name say?

 

In an era where people are bombarded with thousands of products, every day does your brand name ring any bell in your customer's mind?

Branding creates a unique identity in the minds of the public at large. It helps differentiate a product and its features from other players in the market. Most of the time entrepreneurs think of branding as a part of sales and marketing, which it is not. It also has nothing to do with advertising. Branding is all about the ‘Value’ that you promise to offer to your customers through your product. It has to be inbuilt in your product or service. When your customer starts to use your product they start seeing the value that they get. There has to be a connection between your product and the value that it offers. A product without value will fall flat on its face.

The only way to build a great brand is to offer great value and the value should not be just advertised words.

Identifying and building a brand around the value that a product offers is a specialized job and requires the help of an external expert. If you would like to create that brand promise for your product then it is better to have an expert on board to take care of it, instead of you as an entrepreneur wearing one more hat of additional responsibility.   

These were the three questions that an entrepreneur should ask about his business to differentiate and rise above the competition. All three aspects - The process of doing things, innovation, and branding of your organization should happen at the same time. You cannot do it one at a time. It is a continuous process and should never be considered a goal. Instead, these three things have to be an integral part of your organization. It should be in the DNA of your company. In fact, a certain percentage of the resource of the company must be allocated and invested for it regularly. This will increase the probability of attracting new clients, your existing clients keeping on doing business with you and at the same time, they become your unpaid sales force by recommending you to their circle.

Everything said and done, it boils down to just one thing –

Are you as an entrepreneur willing to take this new path of patience and slowly yet steadily work towards becoming a market leader in your own sandbox?

If yes, then congratulations! You are on the right path.

Good luck!

 

 

 

YOUR RECOMMENDED ACTIONABLE

Answer the following questions and start working on it:

 

Q1. If you don’t differentiate today what will happen to your business tomorrow?

Q2. What stops you from being different in your industry? How will you overcome this roadblock?

Q3. What steps are you going to take to differentiate yourself from your competitors?

Q4. What unique answers can you come up with if someone asks you – ‘How is your product different from others?’

Q5. What is that special process you follow in doing things in your business?

Q6. What new things are you doing today in your business?

Q7. What does your brand name say to your customers?

Q8. What steps are you taking or will take instantly to Think, Act, and Deliver differently?

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