In a challenging economy it is critical to differentiate your business from your competitors. Fail to do so and you are certain to face fierce pricing pressure, and even then still struggle to win sales.

Many industries face brutal competitive environments these days. The entire real estate, mortgage, and construction industries are just a few of these. Yet, over 5M homes will still be sold this year! This means there is massive opportunity for those that can clearly create and communicate their Compelling Competitive Advantage to the market in order to win a larger share of the market.

So what is a Compelling Competitive Advantage? It is a USP (Unique Selling Proposition) on Steroids. It involves creating a new strategic position in the market place and then making changes to the way business is conducted so that you are the only logical choice. We call that a Supporting Business Model. This “Model” is the key to enabling you to make, and deliver upon, an outrageous offer that your competitors cannot match. My friend Brad Fallon calls this a “Mafia Offer”.

The Domino Lesson

Years ago Domino’s Pizza did just that. They not only had a great USP, “Pizza Delivered in 30 Minutes or Less or It’s Free” but they also created a powerful, extremely difficult to duplicate, Supporting Business Model. They had inexpensive, plain vanilla locations that were located near their target market (colleges) and a sophisticated delivery system to ensure they could “walk their talk”. Their competitors… well there really weren’t any after they changed the rules, could not duplicate Domino’s offer.

So while your competitors are resorting to discounting away all their profits, you can develop a Compelling Competitive Advantage that blows them away, and lets you profit like crazy.

5 Steps to Creating a Compelling Competitive Advantage

Process #1 – Determining your Strategic Position in the Market

What special niche or segment of the marketplace should your business focus on? Determining this involves combining the skills your business has with the unmet needs of your targeted prospects and then designing your product or service to fulfill these needs.
To review, Domino’s Pizzas Strategic Position was “Busy college kids that wanted food fast.”

Applying this to the Realtor, they need to get clear on what their target buyer/seller needs… Today a buyer is looking for a great deal, and certainty that they are not making a mistake. A savvy realtor could create a system for providing a service that made the buyer feel “certain” they are making an informed, good buying decision (we created a system like this for a client).

Process #2 – Determining your Primary Competitive Advantage(s)

This is the most compelling advantage that differentiates you from your competitors. Your Primary Competitive Advantage can also be your Strategic Position.
Domino’s used, “Delivery in 30 minutes or less or it’s FREE!” This was the primary advantage that met the needs of their newly defined market position – the busy college kids that wanted food fast.

Process #3 – Determining Your Supporting Business Model

How will you specifically deliver what your Strategic Positioning and Primary Competitive Advantage(s) promise so that it meets the needs of your customers and is difficult to duplicate?

Domino’s built a supporting business model that enabled them to consistently provide their promised primary advantage – delivery within 30 minutes.

Process #4 – Determining Your Secondary Competitive Advantages

That is, what other competitive advantages does your business offer that your customers perceive as different from the competition?

Domino’s Pizzas secondary benefits might include favorable pricing, extra large sizes and broader selection of toppings.

Process #5 – Creating Your Compelling Competitive Advantage Statement

This is accomplished by combining processes 1-4. This simple 2-3 line statement will identify your differences to your targeted prospects and customers.

Domino’s Pizzas Compelling Competitive Advantage is really summed up in its slogan (something few companies can achieve) – “Delivered in 30 minutes or less or it’s free”.

ACTION YOU CAN TAKE NOW

Creating this takes work, and is a bit complex. To help you effectively execute on this powerful Speed to Growth™ principle, see resources below to give you all the help you need to dominate your market.

Take a few minutes to evaluate your customer’s needs… in this market.
Then identify ways you can differentiate yourself from your competitors and meet these needs.
Then evaluate your business to determine if you have the ability to meet these needs in a way that is not easily duplicated by your competitors.

AND…

Small Business Growth Club Member Access

Members: If you are a member then you can immediately access the 4 Part Compelling Competitive Advantage Execution Series by going to http://www.smallbusinessgrowthclub.com/members/404.cfm

This includes the detailed, step by step process to creating all 5 Steps of your Compelling Competitive Advantage (5 hours of training). Start with Part 1 and then listen to the Advanced Training (with my $37,000-$67,000 private clients) at the bottom of the download page and then proceed to Part 2. We cover 7 different business situations to help you (from dead industries, to overly competitive ones… start up to seasoned businesses).

Non-Members

Visit us at www.SmallBusinessGrowthClub.com and take the tour.