Finding your USPHow to make your business stand out

Finding your USP

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3 How to stand out4 Differentiating your business7 Your personal brand9 Your product or services

Contents

Finding your USP

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How to stand out

All businesses face competition and when you’re starting up, it’s essential that you’re able to differentiate yourself. Whether you’re selling a brand new product or entering an existing marketplace, you’ll face competition from established businesses.

But don’t worry, it shouldn’t be a daunting prospect. Every business is different and when you’re starting up, you’ll probably have lots of exciting ideas about how you want to change the status quo. This can really help you stand out - but you’ll need to explain this to your prospective clients so they know why they should choose you.

Throughout this guide, we’ll share advice from business owners who have successfully established their company and been able to compete and win clients. And we’ll also offer hints and tips so you can do the same.

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Differentiating your business

The first step is to understand what makes you different from all the other businesses out there. Is it the way you work? The types of products you offer? The level of customer service? Whatever it is, this is a key aspect of standing out from the crowd.

What is your USP?A USP or Unique Selling Point is the thing that makes you stand out from your competitors. Maybe you’re able to deliver more quickly, offer cheaper products or better customer support. To be successful, you’ll need to know what makes you different.

The first step to doing this is to know what others offer. Look at other businesses who offer similar goods or services and try to define what makes them stand out.

Unless your service is something that you provide face-to-face, don’t just look at local businesses. With online sales and mail order delivery, more and more people are shopping nationally and even globally, so your competition may be wider than you think.

How should you find out what people offer? There are a number of ways:

• Check out your competitors’ websites

• Look at social media

• Do some mystery shopping - call them or pop into their store to see what the experience is like

You can then see how your business differs or spot gaps that you could fill. This will help to define your USP - the key thing that makes you different.

Branding for small businessesWe’re all influenced by branding. It affects not only what we think about a business but also how likely we are to buy its products. Brand can change behaviour and impact our views on everything from quality and customer service to how much we feel the brand is for us. For example, research showed that in blind taste tests, consumers chose Pepsi over Coke but when they could see the product name, they chose Coke. That’s branding at work.

Many people starting out in business underestimate the importance of branding and think it’s the domain of big companies. But all businesses have a brand, whether it’s controlled or not. Spending a bit of time upfront on getting yours right can have a massive impact on your bottom line.

When we’re choosing a company to buy from, image has a big impact. Research suggests that it only takes seconds for a prospective customer to look at a business and decide if it’s for them or not.

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“Remember that whether you are selling a product or a service, people buy from people they like. So if you do feel you are in direct competition with another company, focus on how you can be your own best brand rather than being better than theirs.”

Amanda Alexander, professional business coach

Some people think a brand is just the logo, or maybe a tagline or the colours associated with the company. While all of these are part of the brand, they’re just a small element of it. All parts of your business, from how you answer the phone to the words you use in your communications to your business story, are all part of your brand.

“You do not need budget to develop your brand. Your brand is how you do your business and the impression you leave on customers and potential customers. You and your team should embody your brand and it should be inherent in everything you do.”

Mark Breen, co-founder of events company Cuckoo

Once you understand your business and what makes it different, you can look at translating this into the more tangible elements of your brand. This includes:

• Your logo

• Your mission and vision

• Your tone of voice (how your communicate with people and the language you use)

• Your story

• Your colours and visuals, including photography, graphics and other images

Getting this right is important - according to research it takes people less than a second to form an opinion about your website, and it’s the same for the rest of your communications too. You only have one chance to make a good first impression. But don’t panic, it doesn’t have to cost a fortune to get a professional looking brand:

“Spend some time thinking about the values and personality of your brand. Make a list of relevant words and phrases. This will help you to develop a tone of voice for your copywriting and a style for your visual identity.”

Sinead Koehler, Crafty Fox Markets and Crafty Fox Talks

“Try 99designs.com , an online service where you submit a brief and designers submit designs. You choose the best one and only then do you pay. If you’re on a very tiny budget, you could always try Fiverr.com Just remember that it’s a bit like going to a “pile ‘em high and sell ‘em cheap” clothing store though - you’ll have to wade through a lot of stuff before you find a gem. But if you’re on a micro budget, this is definitely the way to go!”

Amanda Alexander, professional business coach

Did you know?

According to bit.ly, 58% of people have tried a new brand in the past 3 months that they weren’t aware of one year ago

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Finding the right peopleAs we mentioned above, your brand and your business is strongly influenced by the people who work there. That might only be you - in which case you can jump ahead to the next section. But if you’re thinking of employing people or are looking at going into business with someone else, then it’s essential that you choose the right people.

A good fit is an essential part of this. Finding someone who understands your business, what you stand for and how you like to work will make it much easier to create a company that is true to its values. Understanding your USP makes this easier to do.

As a start-up, you don’t have to be tied to traditional ways of recruiting - you can do things in your own way that suit your business and style of working. Everything, from how you find people to how you interview, is flexible. Don’t be afraid to try a new approach that fits with your business.

Having said that, you do need to follow regulations about recruitment. However you decide to recruit, you need to ensure your processes are fair, don’t discriminate and follow legislation. Acas has more information about how to do this.

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Your personal brandIt’s not only your business brand that affects your company: the impression you make when you meet someone, call them or contact them in writing can have a big impact on your ability to win business.

People buy from people that they trust and connect with, so your personal brand will affect your business if you have any direct contact with your customers. It will be especially important if you and the business are seen as one. If you sell your services or are seen as the figurehead of the business, you need to ensure that the impression you make fits with your business.

What is a personal brand?Quite simply, this is how you appear to the world. You could be perceived as professional, innovative, dynamic, a risk taker… All of these impressions are formed from the way you act, how you present yourself and the words you use.

It also encompasses your expertise and understanding of specific subjects. If you can demonstrate this to others, you’ll begin to be seen as an expert, which can raise your profile and that of your business too.

Five ways to build your personal brand1. Know yourselfThe first step is to understand yourself as a person and how you naturally present this to others. It can be exhausting to constantly try to present a different face to the world, so it’s best to recognise your natural self and which elements you’d like to emphasise.

2. Understand how you come across to othersIt’s essential that you know if you are reflecting yourself accurately to others. You may be working at the cutting edge of your industry but if you’re very quiet and look uncertain, it can be hard to get that across. Try to be aware of the impression you give to others and if you’re struggling to connect, look at how you could adapt. Presentation training can be a great way to understand the impression you make and learn to hone your skills.

3. Build relationshipsOn its most basic level, a brand is about a connection with another person. Look for opportunities to connect with others, not just as a way to promote your business but also to build genuine relationships. Listen to people, pass on advice, connect people to others that you know that could help them. By networking in this way, you’ll be able to show your knowledge and the time you invest will often come back through referrals and business opportunities.

4. Look for opportunities to show your expertiseAs a business owner, you will have specific areas of knowledge and insights that can be valuable to others. Think about ways that you can share this to raise your profile. If you’re comfortable with public speaking, look at opportunities to give presentations either locally or at industry events. If you’d rather not stand up in front of a roomful of people, look for opportunities to write guest articles or answer people’s questions on social media. All these activities can help to raise your profile and build your brand as an expert.

5. Keep learningRunning your own business can be isolating and you may be exposed to fewer opportunities for training and learning. Although you may be tempted to focus solely on your business and your clients, try to set aside time to keep up with changes in your industry. Not only will this allow you to keep up to date, it may also give rise to new ideas to adapt and grow your business.

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How to manage your personal brand as your company growsSome businesses remain small but others will grow. As you do so, you may find certain challenges, especially if your clients see you and your business as the same thing. Brands are about personal relationships, so it’s understandable that your clients will feel a strong connection, but it’s essential that you deal with the situation if your business is to successfully expand.

Here are some ways to deal with this:

• Get other employees involved early: once a client has a personal connection, it’s much harder for them to switch to another contact. Try to get a couple of the team involved from the start, so they can begin to build a connection.

• Give credit and explain who did the work: clients will sometimes assume that you’re the only one working with them, so make it clear how the team works and who delivered the work.

• Ask your employees to build their own profiles: if your clients come to you because you are well-known in the industry, then having other employees with a strong profile will help. It also helps your business to have a number of experts working in one place.

• Look for social opportunities with your clients: it can be easier to build relationships in informal situations, so try to find occasions where employees and customers can mix outside work.

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Your products or servicesThe other important aspect in standing out is your products or services. Of course, it’s easier to differentiate yourself if what you sell is unique or different but even if they’re not, there are things you can do to help you compete.

The first thing to consider is the level of competition you face from other companies. In general, there are three ways that you might be selling.

Existing products in an existing marketNot everything needs to be new. In most industries there is room for more businesses selling similar products or services. The majority of new businesses will be selling products that already exist. This is good news, as it makes it easier to find customers. The challenge is that they may already be buying from one of your competitors so you’ll need to stand out, so people choose you instead.

A new product in an existing marketNew products are exciting but they can take a long time to get established and make a profit. Customers are likely to be using an alternative product. As a new business, you’ll need to explain why the new product is better than any existing products on the market.

A new marketIn this case, you’re likely to be communicating to people who are unfamiliar with the issue and the solution you’re offering. You’ll need to explain how your product can fix a challenge that your customer has (which they might not be aware of) and how things would improve if they bought from you.

How to make your products or services stand outWhichever market you’re approaching, there are a number of ways to differentiate your products:

Price

This is often the first thing that people think about when they’re looking to differentiate. And while a lower price can attract more customers, be aware that if your product is too cheap, you may be undervaluing it and giving an unwanted message to your prospective buyers. Premium goods often command a higher price, so be sure that you don’t give the impression that your products or services are poorer quality.

Price is just one of the factors that people consider when buying - ease of use, customer service and a connection with the brand can all make a big difference to what your customers will pay. In fact, research by Oracle shows that 81% of customers will pay more for a better customer experience. So don’t think that you have to undercut your competitors to achieve the sales you want.

Having said that, you also don’t want to be too expensive if you can’t justify the benefits. Take time to research the market and what’s on offer. You can then decide on what price customers might pay and check that you can still make a profit.

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Location, location, location

Where you’re based can make a huge difference to the number of sales you get. Being the only business in your area offering your products may be a help - but do make sure that a market exists. There may be a reason that no one else is selling there.

Also think about the products or services you’re selling. For some, location will be important (corner shops and takeaways thrive on the ability to provide goods locally). For other products, people will be happy to order remotely and get them delivered.

Access

Helping people get your products or services more easily can make a big difference. Maybe you offer lots of car parking or longer opening times, or maybe you sell online 24/7 and your site is easier to use. If you can offer a fantastic delivery service that offers weekend delivery and timed slots on weekdays, that may also help to differentiate you from your competitors.

Service and customer support

Customer service is an essential part of any business - many big businesses actually use this as their USP. From Amazon’s reputation for simple returns to FedEx’s guaranteed next day delivery, companies can differentiate themselves by going above and beyond legal requirements.

Think about what you could offer that would help you stand out. This could be a guarantee, out of hours support, a personal service or a loyalty scheme. Ask people what they want, so you’re offering a real benefit.

Of course, great customer service doesn’t have to be face-to-face. In fact, research shows that consumers expect companies to use social media to answer customer service questions and 42% expect a response in under an hour.

Supply chain

Is there anything special about how and where your products are manufactured? Maybe they are made in Britain, or they’re environmentally friendly or you only buy from manufacturers who follow ethical practices. The story of your products and the difference they make not only to your customers but to the people who make them can be a powerful story that can help you to stand out from others.

Expertise

As a smaller business, you’re more likely to be a specialist and this can help you offer something extra to your customers. You can offer advice about your products or services and a more personal service. This can really help you stand out.

Sources: Printed.com & CreativePool, Garlic Media Group, Oracle, Edison

Sage (UK) Limited, North Park, Newcastle upon Tyne NE13 9AA www.sage.co.uk/business-advice/starting-and-planning

Sage – the market leader for integrated accounting, payroll and payment systems, supporting the ambition of the world’s entrepreneurs.