Every business is different and can (and should) have a selling point that’s unique - that differentiates it from all its competitors. Does your business have one?
This is part II of a three-part series on ‘Is Your Business Idea worth Investing In?’
| Do you know what smart investors look for when they consider your business plan? This blog series is based on Reid Hoffman’s ‘Three Rules for Investing’. | 
|
Hoffman is arguably one of the smartest investors out there; he is the co-founder of LinkedIn, an investor in online companies such as Facebook, Zynga, Flickr, Digg etc.
His first rule judges startups based on their ability to reach a massive audience. I’ve covered this rule and ways to achieve it in my earlier post: Is Your Business Idea Worth Investing In? - Build a Massive Audience.
His second rule, concerns the startup’s ability to identify and market its USP. We will discuss some of the most common USPs in this post.
Remember, every business is different and can (and should) have a selling point that’s unique - that differentiates it from all its competitors. (Feel free to tweet that.)
His second rule, concerns the startup’s ability to identify and market its USP. We will discuss some of the most common USPs in this post.
Remember, every business is different and can (and should) have a selling point that’s unique - that differentiates it from all its competitors. (Feel free to tweet that.)
USP #1: Speed
Is your USP speed? Can you deliver in two days what your competitor can in ten? Often, prospects don’t mind paying a premium if it means getting the finished product delivered faster. Now, this product need not be tangible. Of course, if you are a direct competitor to Amazon, ‘Speed’ will entail delivering the ordered products faster than Amazon can.
However, this is just as applicable to services. For instance, I am a freelance writer and if I can accommodate clients that need faster turnarounds, I am differentiating myself from other freelance writers who can’t.
So, if speed is your USP, it has to be fast enough to be considerably better than that of your direct competitors.
There is a catch: Choose speed as your USP only if you can keep up. Don’t forget to account for unexpected delays. If you don’t keep your speed promises, you’ll lose customers.
However, this is just as applicable to services. For instance, I am a freelance writer and if I can accommodate clients that need faster turnarounds, I am differentiating myself from other freelance writers who can’t.
So, if speed is your USP, it has to be fast enough to be considerably better than that of your direct competitors.
There is a catch: Choose speed as your USP only if you can keep up. Don’t forget to account for unexpected delays. If you don’t keep your speed promises, you’ll lose customers.
USP #2: Quality
You could choose quality as your USP. The products you sell could be healthier, packaged better or of a quality unmatched by your competitors.
Similarly, if you provide services, not products, you could provide higher quality service, ensure excellent pre and post-sales customer support and consequently give your clients an experience that they’d be willing to pay a premium for.
Similarly, if you provide services, not products, you could provide higher quality service, ensure excellent pre and post-sales customer support and consequently give your clients an experience that they’d be willing to pay a premium for.
USP #3: Price
Both the USPs discussed above are cost-independent. If you are giving your customers either speed or quality unlike what they’d receive from your competitors, you don’t need to compete for price anymore. However, if you can’t deliver either of those USPs, you can choose to compete on price.
This is one of the worst USPs you can choose, because it generally gets you neither quality customers, nor loyal ones. It additionally, tends to affect your profits.
Price, as an USP, should be chosen only and only if you can’t compete on any other parameter.
This is one of the worst USPs you can choose, because it generally gets you neither quality customers, nor loyal ones. It additionally, tends to affect your profits.
Price, as an USP, should be chosen only and only if you can’t compete on any other parameter.
USP #4: Likability
With the rise in social networking, some brands are choosing to define their USP as likability and it is a smart move. If you show a prospective investor that you have the means to drive droves of genuine fans to like your facebook page or follow you on Twitter, LinkedIn and Pinterest, that hints at a huge following that’d be willing to buy your products or service.
So, Likability as an USP may be unusual, but if your brand, product or service lends itself to attracting a huge number of followers, than you may want to pursue and cash in on it.
So, Likability as an USP may be unusual, but if your brand, product or service lends itself to attracting a huge number of followers, than you may want to pursue and cash in on it.
Investors want to know what you’d be using to market yourself to the masses or your target audience. What will set you apart from your competitors?
I’d like to reiterate at this point, that the four USP options given above aren’t the only ones to choose from. Your business is unique. Analyze your offerings, your staff, your way of doing things and then decide what benefit you can give your customers/clients and your investors – this will be your USP.
Your Turn
Feel free to share other USPs that successful businesses are using, your business’ USP and your thoughts on the importance of having one, in the comment box below.
Share, tweet and spread the word. Also, subscribe to this blog's feed (see the subscribe option in the sidebar) to receive an update when I add another useful and awesome post for your business.
Share, tweet and spread the word. Also, subscribe to this blog's feed (see the subscribe option in the sidebar) to receive an update when I add another useful and awesome post for your business.
Author: Urooj Kazi is a professional freelance business writer. To hire her to write content for your business, visit this website's Contact Urooj page.
