CFO Services | Differentiating Factors in Executive Summaries
Not only should an entrepreneur understand what their differentiating factors are according to CFO services. But they also need to put those in their executive summary. The reason why is because the executive summary is a synopsis of the most important aspects of the business plan.
Understanding what sets them apart from their competition is one of the most important things for a business. For a multitude of reasons. CFO Services says one of the first reasons why knowing what sets them apart is extremely important. Is because this is what makes the difference from their competition.
Especially if they are in a highly saturated or highly competitive market. Knowing what makes them different can help an entrepreneur carve out a unique identity for themselves. This is extremely important for any business. But especially ones who are in a very competitive business.
Another reason why it’s important for business owners to understand what their differentiating factors are. Is because that is going to be what attracts their ideal and likely customers. The reason why says CFO Services. This is because all customers are solving a problem when they purchase a product or a service.
Some customers purchase on price alone. And that’s the problem that they are solving, they need groceries at the lowest price. They need to eat out at the lowest price. Or they need to purchase clothes at the lowest price. But the price is not the only important consideration.
Other reasons why customers would buy products or services from some customers over others might be convenience. It could be the importance of a brand name, or a certain quality, or the flexible payment structure just to name a few.
When a customer figures out what their differentiating factors are. They will be closer to understanding who they’re ideal and likely customers are. And figuring out what problem they are solving when they make a purchase from their company.
And when an entrepreneur knows their ideal unlikely customers, and what problem they are solving. It makes it much easier to find those ideal unlikely customers. And Market directly to them, to sell their products and services.
This is why it’s very important for an entrepreneur to understand to a great degree what’s their differentiating factors are. And how they can figure this out according to CFO Services. Is by writing out a list of all of the things that make them different from their competition.
There might be many things on this list. And there might be just a few. But once an entrepreneur has this list. All they needed to do, is narrow down the list to about three things that they want to focus on doing exceptionally well. If they try to do the entire list to a high degree. Chances are they won’t be as good at everything as they could be at three things.
by understanding what makes them different, can help an entrepreneur identify their ideal unlikely customers. And create a marketing plan to find them. and this is why it’s important to include the differentiating factors in the executive summary. Because it can actually impact the entire business plan.
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Business owners need to understand how important it is to specify their differentiating factors Says CFO services. Because not only is it going to help them find their ideal and likely customers. But once they know that, it can actually impact their entire marketing plan. And ultimately their entire business plan.
They need to include this information in the executive summary of their business plan. So that Anyone who reads it including Banks and financial institutions. We’ll see that an entrepreneur understands what makes them unique. And how to find their customers based on that.
Financial institutions will be more likely to loan money to businesses that will be more likely to be able to pay back that loan says CFO services. And so specifying the differentiating factors in the executive summary. Can be one way that the financial institution sees that an entrepreneur has a great marketing plan.
However, many entrepreneurs may not understand what can make a differentiating factor. They might have made their list of what makes them different, and couldn’t think of anything to write on that list. So by understanding all of the ways that they can be different from their competition. Can help an entrepreneur figure out what is their differentiating factors.
A niche customer base can actually be a differentiating factor says CFO services. And this might not be something that is immediately obvious to business owners. By figuring out who their Niche customer base is if they have one. Can help them find that Niche customer base.
a great example of this would be a shoe store that caters only to basketball players. Or a contractor that only builds dentists’ offices. Or a restaurant that only serves vegan food. These are all examples of businesses that cater to a very niche market. And when a business focuses on such a unique customer base. They will get to know that customer type extremely well.
And it can help them serve those customers to a high degree of Excellence. Because they know all of these specific needs of that type of customer. This is why having a niche customer base can be considered a differentiating factor.
Even unique features in an entrepreneur’s product can be a differentiating factor. And entrepreneurs might not think of this says CFO Services. Because they just think that it’s their products. And that there’s nothing inherently unique about it.
However, things such as having a 3-year warranty instead of a one year warranty can be an example of unique features in the product that sets them apart from their competition.
When business owners are able to truly understand their differentiating factors. This will make it a lot easier to create a marketing plan around how to find those customers looking for those differentiating factors.