CFO Services | What Are Your Businesses Differentiating Factors
One of the important parts of the business plan according to CFO Services. Is figuring out how a business stands apart from its competition. This is extremely important for a business owner to figure out. So that they know what makes them unique so that they can Market those differences to customers.
Chances are if they are different from their competitors. There are customers out there who are looking for what they are currently unable to get with the current choices in the marketplace says CFO services. Because of that, if an entrepreneur can Market those differences. No matter how big or small they might seem. The clients that are looking for that will come to the entrepreneur’s business over their competitors.
When people start coming to the business because of those differences. An entrepreneur can build a marketing plan around those differences. Targeting the customers who are looking for that was different aspects of the business.
An entrepreneur needs to consider that any customer who is making a purchase. Is solving a problem. And when customers come to their business over their competitors. Because of their differences. An entrepreneur should be able to use the problems that they are solving along with their differentiating factors. In order to find more customers like that.
This is how the differentiating factors of a business can actually influence a marketing plan says CFO services. And is why it’s important for an entrepreneur to figure this out in their business even before they finish their business plan.
In fact, it’s so important not only will it influence the marketing plan. But it should be put into the executive summary of the business plan as well. The executive summary is the beginning section of a business plan, which summarizes all of the most important aspects of the business plan.
How a business is different from the competitors, and how that will impact their marketing and how they can find their ideal and likely customers. Is why it should be included in the summary of the most important parts of the business plan.
However, entrepreneurs often have a difficult time trying to figure out what their differentiating factors are. Or realizing that what they consider very small differences are actually more significant than they seem to be.
An entrepreneur should write down all of the things that make them different from their competitors no matter how big or small it might be. Whether this is different payment methods, unique features of their products, the quality of their product, the training of their staff, and even their location. Can all be considered differentiating Factor.
Once they have this list, CFO Services recommends an entrepreneur narrowing it down to about three items that they are going to focus on doing exceptionally well. They can still offer all of those other differences. But by focussing on being an expert in certain areas. Can continue to attract those ideal and likely clients that are looking for those differences.
When You Need Our Help With CFO Services?
Understanding businesses differentiating factors is extremely important says CFO services. In fact, half of all Canadian entrepreneurs sell. And Industry Canada did a survey to find out why. What they discovered, was that 42% of all failed entrepreneurs are unable to find a market for their product or service.
This is why figuring out what the differentiating factor in their business is. Is so vital. Is because an entrepreneur will be able to figure out who their ideal unlikely customers will be. Based on what sets them apart from their competition.
When they know who their ideal clients are. They can create a marketing plan that will allow them to find more of those clients. And fine-tune their messaging. So that we can convince those ideal unlikely customers to come to them over there competition.
However, many entrepreneurs may not realize what differences they have that are differentiating. And can be capitalized on. Because no matter how big or small the difference seems to be. If there are customers that are looking for that. It can be big enough to get a market share.
Well, there are some larger differentiating factors such as location. because if a business owner can put their business in a unique location. Or a very convenient location. Such as one in a place that has other similar customers. That can be a great differentiating factor.
But smaller things such as higher quality, better-trained staff, and even how long the staff has been in the industry for can be differentiating factors because they are also competitive advantages. If a customer wants an extremely experienced business. They might shy away from a new business in favor of one that’s been open for 20 years for example.
However, if that business that’s been around for 20 years has employees that have only been in the industry a few years. But the new business has employees that have been around for 20 years in the business. that might encourage who are looking for experts to go to the new business over the older one.
Unique features of the product or service can also be a differentiating factor says CFO services. A great example of this is if a business owner guarantees their product when similar Industries do not offer a guarantee. Or if they guarantee for three years when their competitors are only guaranteeing for 1.
Other examples of differentiating factors can be having an online ordering portal, free delivery, unique branding, and even payment methods And terms. If a business owner can offer unique ways to pay the bills. Or offers a flat fee instead of an hourly fee for example. These can be reasons why a customer would want to patronize that business.
However, a business owner cannot Market this message if they don’t know what it is for themselves. Which is why it’s extremely important for an entrepreneur to figure out how they are different in business. So that they can create an effective marketing strategy.