How are we different from the competition?

If you’re a business owner, you’ve undoubtedly heard the statistics around business failure rates. Only 50 percent of businesses make it past the first five years and one third make it past the 10-year mark.

Although there are plenty of reasons why businesses fail, lack of differentiation is one that often tops the list. Standing out from your competition is critical to your company’s success. While most people understand that concept, far too many businesses fail to put it into practice.

Being like everyone else is just not enough. If you can’t explain – and back up – why you are better or different to your competitors, you are missing a massive opportunity.

Why will people spend their money with your firm? How are you different from your competitors? Do those differences matter to your customers? While you may believe in what you are offering, while you may have planned carefully, while you may be certain you can deliver value to your customers, have you asked the most important question? What is it about your firm that will keep customers coming, not just once but again and again?

Competition exists for virtually every product or service, so how can you Stand Out From Your Competition?

Deliver extraordinary service. Plenty of businesses say that service is what makes them different. However, just saying it is not enough. You have to deliver extraordinary service that you can’t get anywhere else.

Address customer pain points. If you want to win customers over, a great way to do that is to alleviate their pain. Think about how you can solve a common problem for your customers and you’re sure to stand out.

Do business differently than your competitors. If you want to stand out from your competitors, it pays to do business differently than they do. Finding and exploiting holes in their business model is a great way to set your company apart.

Create a powerful offer or guarantee.

Guarantees are a great way to reduce the perceived risk of buying your product or service. Eliminating the hesitation for making a purchase can lead to more sales. Plus, a guarantee can also make your company seem more trustworthy and likable.

Sometimes the smallest things can make the biggest impact. How can you do the unexpected to surprise and delight your customers? If you do this, you’ll stand out and create raving fans.

There are plenty of additional ways your company can stand out – you can deliver extreme value, give something valuable away for free, create unique partnership or build powerful communities.

How well you differentiate your business is a measure of your probable success. Consider carefully the ways you will differentiate your business from the competition. Use thought and research to decide which things will make your firm stand out from everyone else.

Jack Welch saidIf you don’t have a competitive advantage, don’t compete”.