How differentiated is your business? (Fourth driver of business value)

Happy Sunday!

I hope this note finds you well today.

A few months ago I was searching dog breeders and their websites….yes, it’s happening. Something the kids have been wanting for years is finally going to happen :). We are now on a list to receive our puppy in the Fall.

The point of my sharing this is that as I was looking at breeders’ websites, they started to sound very similar - they all offer puppies of a particular breed, they all guarantee the pedigree, most offered first shots, and so on. But a couple of websites stood out. Some offered more resources than others after you received the puppy. And this got my attention.

We will be first-time dog owners and this was very reassuring to me. Having shopping lists and resources for new pet owners was right up my alley. One breeder even offered a community support page.

The point I’m making here is about differentiation. They all really offered the same or similar ‘offering’ (a cute little puppy of the breed I was looking for) and yet a couple really stood out to me as a buyer.

When it comes to differentiation, thinking about what makes your business different is important. Even if you’re in a heavily regulated business, what makes your business different than others in your industry?

And, is this difference meaningful to your customers? Do they care about this difference? Are you focussing on the ‘right’ differences?

I certainly cared when the breeder I chose offers a full list of supplies, after-purchase support, and many other details I had no idea I needed to know about caring for this new family addition.

Knowing what makes your business different and marketing it so your potential clients see the difference allows you to (hopefully) get to the point where you’re able to control your own pricing and therefore profit. And, it’s a great achievement when you’re growing and building business value.

Don’t worry if your pricing is set by your industry. There are still ways to differentiate your business and the fact that some pricing is set makes your business stronger in other ways.

This happens to be the fourth driver of company value: Differentiation aka Monopoly Control.

This is the ability to have a differentiated value proposition that gives you control over your pricing and thus, greater control over your profit. And your differentiation is meaningful to your potential customers and they care about what makes you different.

Think about your marketing or advertising - are you communicating how you are different?

NOW is YOUR time.

Ariana

PS. To review past drivers of company value: first, second, and third.

Read the Fifth Driver of Business Value here.