When asked about their product or service, most entrepreneurs could go on and on with the various features and advantages. However, once you ask them, “what makes your product or service desirably different?” their pitch begins to flounder. They begin to fall back on their key features or advantages over their competition. But, the question remains, while your product may have an advantage over the competition, is that enough to make it desirably differentiated? When determining how you can differentiate your product or service, consider the following:
Core Competencies
Too many entrepreneurs and startups get caught trying to be everything to everyone. Identify a problem that is not be solved and determine how you can best apply your core competencies to solve that problem. It doesn’t take endless features and nuances to solve a problem well.
Know Your Customer
Know the fears of your customer. Determine the reasons that they either avoid a purchase or run towards it. Continue to narrow your target market until you can identify the crux of the problem for a segment of the population. The better you know this segments pain points, the better able you will be to create a product that solves a unique problem in the market.
Write a Positioning Statement
A positioning statement is a one or two sentence statement that articulates your product or service’s unique value to your customers in relation to your direct competition. It explains why your customers should purchase your product or service over that of your competitors.
A Note On Intellectual Property
If your product or service truly is well-differentiated and one-of-a-kind you may be able to acquire some intellectual property to help secure your idea from competitor theft. Discuss your product, service, processes, etc with a startup lawyer to determine if you can obtain any trademarks, patents or copyrights.
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