Welcome to the second half of the Getting Your Business Back On Track series. In this post we are going to close the loop on getting your business or idea back into focus and set up so that you can really lean into growing.
If you’ve just found this post I’d encourage you to follow this link: Get Your Business Back On Track: Part 1 and find your answer to the “What am I doing?!” question. Then come right back here.
Now that you’ve found clarity let’s talk about competition and competitive advantage.
The first two questions I want to help you answer are: “How do I map my competition?” and “How much attention should I be paying them?”.
I want to start with the second question because it’s where all the context lives.
Paying attention to you competition is important but it shouldn’t be eating up any real significant part of your business building day. It makes sense to take a peek at your competitors in some kind of systematic way because it will help you validate your ideas, products and services. It will also provide insights as to how your market is reacting to certain types of calls to actions, sales and marketing efforts. Spending time to get an objective view of your competitive landscape can be really helpful when it comes to how you choose to interact with your audience or target market.
The tricky part is getting sucked into a social media creeping black hole. I know that I’m not the only one who’s time-travelled a bit because, what started off as research ended with me creeping through every Tweet, status update and Instagram post. Setting up your notes and calendar to help you manage your research time can be really helpful. And, it keeps that irrational part of your business building brain from squirrelling off into daydreams of the entrepreneurial grass being greener on the other side of your competitions monitors.
If you’re really struggling with how this works just try allocating time once a month to check in on your competitors and try to track the engagement they are getting over time. You should also note that not all engagement is created equal. You should be weighing a testimonial you’re reading from someone’s customer on Facebook very differently than the amount of likes someone’s collecting in their posts. Try to focus on the metrics that could add the most value to how you’re shaping your sales and marketing strategy efforts. Don’t forget to keep an eye out for questions that are being asked, the answers that are given and how those engaged react to both. That right there can create enormous opportunities for you!
Now onto the question of mapping your competition.
First off, yes. Yes, you do have competition. It doesn’t matter how niche your market or how specific your offer you will always battle the choice your customer’s have to make about how they spend their discretionary dollars.
Now that we are all on the same page if you plan on growing your business I’m challenging you to think about all the places your customers could spend their money to reasonably address the problem(s) that your business solves. You’re going to do this by filling in the following blanks:
1. Competitor’s Name.
2. What are the products or services they offer?
3. How are they charging for their products or services?
4. What do you think their competitive advantage is?
5. What are they key features or benefits?
6. What don’t they offer or how are they not addressing the problem you solve?
My recommendation would be to set this up in your favorite spreadsheet app so that you can start to collect lots of data and look for patterns. You can feel free to add to this list as well but I just wanted to make sure that you had a starting point. The boundary you want to stay inside of are people solving the problem you are (or that you’ve identified) having gone through the exercise in part one of this series.
After you’ve collected this information and found a few patterns it’s time to use what you’ve found to your advantage.
Your competitive advantage.
See what I did there?
Your competitive advantage is an objective measure of your ability to deliver value better (or more efficiently) than any of your competitors. Borrowing from my economics lecture notes competitive advantage is an environment where you have an edge in creating value for your customers over your competition. It’s not permanent, contrary to what some gurus might say, and can be achieved by being able to deliver greater value at a lower cost, ownership of some proprietary input or process and even the creation of a laser focused brand.
What competitive advantage is not is a generic promise to having the best customer service. It’s also not your skilled staff, outstanding team, knowledgeable sales people, list of customers on your website or being flexible and responsive. None of that makes you special because it’s expected! If you have to tell your audience that you’re great at the thing they expect as the lowest expectation they have for doing business with you then you are in trouble. Of course you should be knowledgeable and of course you should have great customer service.
If you don’t then I can promise you, you won’t be in business for very long. So, don’t boast about being good at the table stakes and focus instead on the things that make you truly unique. Remember, you may have lots of competitors like the holistic business I outlined for you in part one but you’re the only one that can do business and offer value like you.
If you’ve been really playing the home version of this game up to this point you should be really clear on what your business offers, have an idea of who your competing with, a process for checking in with your market and some guidance on figuring out what makes your business more special than your competitors. This is the place from which you should be making all your future business decisions. Using this data to make decisions around marketing, sales or even just the next piece of content you create will make those decisions exponentially more impactful. These posts were designed to stop you from continuing the spray and pray approach to growing your business. By focusing on your core value and your business’s core identity you can channel your time, money and resources into making decisions that aren’t inspired by chasing the newest marketing fads or trying to serve everyone.
Usually at the end of these blog posts I typically have a spot for you to download a content upgrade or am asking you to answer a question. I’m choosing to skip that ask this time because my real call to action is for you to take this Getting Your Business Back On Track series seriously and do this work. Build the spreadsheets, really grade your competitor’s effectiveness and do the work that’s necessary in building a clear brand that customers want to engage with.
Yes I ended that last sentence with a preposition and no I don’t care because I’m a little fired up in the writing of this conclusion.
Go do the work so you can make great things happen for your business!