How to Define Your Competitive Advantage
As the owner of a small business, it's important to understand what it is about your products, services or processes that makes customers want to choose you. This is referred to as your competitive advantage. When you can figure out how to gain a competitive advantage within your industry, that's when you'll really start to see some growth as a business.
Every business desires to be the top competitor in its industry or niche, but only those that are able to take a good introspective look at their organization are able to figure out how to get to that position. What is it that you do better than anyone else, and how can you make sure that people know this about your business?
Here are some different areas of your business that you can look at to find your competitive advantage:
- Cost value. While you can't rely on low prices alone to win you a loyal base of customers, it's certainly a great place to start. People want to feel like they're getting a good value on the price that they spend for a product or service. While you likely won't be able to beat all of your competitors in terms of lowest prices (especially when you're first starting out), you can definitely make a push to make your customers feel like they're getting the most bang for their buck.
- Differentiation. It is imperative for small businesses to find a way within their industry or niche to be totally unique. This is how you will begin to build a following, and can also become your competitive advantage over time. If you already have a particular aspect of your business that is completely different than anything else within your field, then that is your advantage.
- Focus. There should be one firm focus within your industry on a set of goals and a strategic plan that helps everyone in your organization believe that you can truly be the best at what you do. This focus on constantly being the best and setting high standards for yourself can help you to form a competitive advantage.
There are plenty of other ways that you can find a competitive advantage within your industry, but these are three ways that all businesses can use to find it for themselves. If you have any questions, contact us today at Viral Solutions!
Thomas von Ahn | Chief Elephant Slayer | Viral Solutions LLC