Business owners always need to keep an eye on their competition and strategic moves they’re making. Large companies lock out their competitors by out-doing them in capital infrastructure investments, but smaller businesses must be smarter about how they defend their turf. Below we dive into four ways to build value around your business.
Differentiate
Is there a certification program, a special license or a unique service that could help differentiate your business? Being able to differentiate in the marketplace helps build your credibility and trust, which in return will build value.
Defend
Ecstatic customers act as defenders against other competitors entering your market. Make sure to be in touch with your client base. Understand why they are purchasing your products or services. Make sure your customers are happy in order to assistance in defending your turf.
Integrate
Is there a way you can get your customers to integrate your product or service into their operations? Try hosting workshops to train customers on how to use what you are selling in their everyday life. This makes your product or service more integrated and more difficult to switch in the future.
Become a Verb
Think back to the last time you looked for a recipe. You probably “Googled” it. Part of Google’s competitive shield is that the company name has become a verb. Now every time someone refers to searching for something online, it reinforces the competitive position of a single company. Is there a way you could control the vocabulary people use to refer to your category or specialty?
Protecting your business’ turf is a virtuous cycle: differentiation leads to having control over your pricing, which allows for healthier margins, which in turn lead to greater profitability and the cash to further differentiate your offerings. The Anders Business Transition Planning Services Group can work with you on a personalized plan to help build your company value. Contact an Anders advisor to start the process.
