Why ‘us too’ businesses are unlikely to succeed

Why your business needs points of difference from the competition to succeed

What was the factor driving you to start your own business? Did you spot a gap in the market? Did you find a uniqueness that consumers would truly value? Did you invent an entirely new idea? These are all great values and reasons for starting a business; sadly, many businesses are instead driven by principles of ‘us too’.  All too often, people see another business doing well and decide to jump on the bandwagon, without a new idea, or even offering the market a new variation.  To be honest most businesses do not provide a unique product or service; how many tire fitters or hairdressers do you know within a 10-mile radius of where you live? ‘Us too’ businesses are less likely to succeed for longer periods of time, however, this is not to say that, if yours is an ‘us too’ business, you can’t find a way to stand out within the market.

Are you still confused as to whether your company falls into the category of being an ‘us too’ business? To put it simply, being an ‘us too’ business simply implies there is nothing unique about your business when compared to your competitors.

Consider this example: within a town there are three established hairdressers that are already under a certain amount of financial pressure. Clark decides to open another hairdressing salon, which essentially provides the same services as the other three. The hairdressers now have to share the profits of the area between four businesses, instead of the initial three. Prices will be pushed down further and further and ultimately, one, if not more, will fail.

In another dimension, Clark decides to open up a business with a clear Point of Difference from the established salons; Clark decides to open a hairdresser’s that only uses natural products, which are ethically sourced and vegan. Clark now brings something to the market that none of the other hairdressers is providing. Clark can now charge higher prices; he is bringing in customers that would prefer a natural product but before couldn’t source it locally; but, more importantly, Clark is attracting potential customers who previously might have traveled out of the local area to obtain the products he is providing. As you can see, Clark’s business has a much greater chance of surviving as a business if he doesn’t just create another ‘us too’ business.  (In this example, all of the hairdressers in the town have a better chance of surviving, as Clark has effectively widened the market.)

 Do you have an ‘us too’ business?

If I asked you on the spot what is different about your business and you couldn’t tell me straight away, unfortunately, the chances are you have an ‘us too’ business. It might mean that there is nothing that makes you stand out particularly, and the chances of your business failing as new competitors arrive to the market increases dramatically.

This seems a depressing prospect, however, all hope is not lost. There are things you can do to prevent this nightmare from becoming a reality.

How to find your business’s Points of Difference…

Previous business wisdom used to be that all businesses should have a USP – a Unique Selling Point.  But the reality is that very few businesses are unique: if you are a car mechanic, it is highly likely that there are other car mechanics offering pretty much the same service as you in your town.  In this instance it’s important to establish your Points of Difference, the things you do that will make people buy from you and not the competition. Start thinking about how you do what you do, as opposed to what you do.

However, many of my clients are still stumped when I ask them what their Points of Difference are, so my initial proposal is always to write a list of anything that makes your business stand out from the competition; even the smallest, seemingly insignificant, details are worth considering.

There are endless possibilities as to what your Points of Difference could be, in fact, it is highly probable that the best PODs won’t be listed by me, as they are yet undiscovered within your business nevertheless, I have devised a few areas for you to consider that could help trigger you to identify your PODs:

• Providing a better customer service than competitors
• A higher quality service (although this alone is not enough)
• A better warrantee service
• A larger array of products
• Loyalty club system
• Value for money
• Super value/expensive products – setting you apart from the rest
• An exclusive client list
• Products that are new/innovative – although be careful with this one, because it won’t be long before someone comes and tries to replicate them
• Store atmosphere / client experience (John Lewis Vs Wilco)
• Quick efficient service

The possibilities are endless, and your Points of Difference will, by definition, be different from other companies, both within your sector and in other industries. The process of identifying PODs, however, is not always easy. If you’re struggling to work out how your business is different, it can help to have an objective expert add a fresh pair of eyes.  I specialise in helping ‘us too’ businesses turn round from their current path and reinvent themselves with clear PODs engrained in their ethos and understood and embodied across their organisation.

Once defined your PODs need to become part of your SALES PROCESS – More of that in a future Blog.

Making your business stronger and more successful

One of the tools that I use to help inform business owners about areas where they can develop strategies to make their business more robust and successful is Value Builder.  The strategies that we identify with Value Builder are based on good business sense; strategies that increase the value of your business to a third party are also strategies that make your business stronger and more profitable right now – great strategies whether you are planning on selling your business or intend to stay in it for some time to come.

Value Builder exclusive offer

Value Builder is an extraordinarily powerful tool to give business owners the insights they need to meet their business and personal goals, so I am personally committed to making it available to entrepreneurs in Kent, Sussex and Surrey, in the area indicated in the map.

Value Builder normally costs business owners £500.  However, I am delighted to offer it to selected businesses free of charge – and I am also pleased to offer the follow up 90-minute 121 consultation to go through your results at my expense.

Why?  Well, I want businesses to have the very best chance to grow and develop, delivering the results business owners and their families deserve.

Secondly, I want to see businesses thrive and recruit additional team members to further grow the business and help to boost the local economy.

The full list of towns where I can provide this service is below, but if you don’t see your location, give me a call or drop me an email I will let you know if I can help you.  If I can’t, I’ll put you in touch with one of my colleagues who helps businesses in your area.

To apply for your FREE Value Builder report and business strategy review

Call 01732 453 464

Or email julianweekes@actioncoach.com

I help business owners in the following towns:

Don’t see your location in the list? Drop me a line and I’ll let you know if I can help you – or put you in touch with one who my colleagues who works with business owners in your area.

My clients benefit from supporting material and coaching in the following business areas:

Looking for support in one of these key business areas?

Call 01732 453 464

Or email julianweekes@actioncoach.com