5 tips for finding and growing your competitive advantage

If you’re a business owner, you’ve likely asked yourself an important question as you’ve figured out how to scale. It’s a big question because it can make or break a company. That question isn’t always simple to define, either. So, just what is the question? It’s this: “What is our competitive advantage?”

It takes a lot of reflection and effort to figure out what that advantage is, and just as importantly, to make sure you’re ensuring it’s growing your business. But once you know what yours is and how it can help you stand apart, it’s worth the time to nurture it. As you work toward building upon what your advantage may be, use the following 5 tips to build toward your future.

Sometimes it is obvious what sets you apart in the market because you built a business out of a need that existed. But sometimes, your company’s competitive advantage may not be as obvious. That’s why it’s helpful to analyze what truly makes your business different from the competition. Digging in and looking for your competitive advantage versus that of your competition is a great way to define your edge and use it to grow within your market.

To look for your competitive advantage, you’ll want to begin by analyzing the information that exists. Conduct a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats that exist within your business. As you see both the positive things about your business, don’t forget to explore the weaknesses, too, to see how you can improve upon them. Once you know what truly makes your business unique, be sure to use that knowledge to stand for and communicate the features and qualities that make you different in the market. In fact, make sure you’re taking pride in those distinctions and letting people know what differentiates you from every other business out there.

One of the best ways to truly understand what sets you apart in the market is to talk to your customers and learn about their experience with your company and its products. Customer feedback is a great way to learn from your brand advocates and loyalists, as well as any customers who may have had a not-so-great experience with your company. Customers often provide insights into new products or services you can provide that would help you build upon your competitive advantage or improve in many ways.

There are numerous channels you can use to talk to your customers. Simple customer feedback surveys are a great way to source information. Another more time consuming but highly effective strategy is to reach out directly to customers to have a conversation. And don’t forget to use social media to listen in and see what people are saying. Social listening tools can be incredibly helpful in sourcing information about your company in a way that is honest and straightforward.

Sometimes the best way to understand what is being said about your business is to talk to the people on the front lines: your own team. Not only do they often have unique insight into what is helping your business grow. But they often also have insights into what sets your business apart and what can be done better. What’s more, they often have incredible ideas that can innovate your business and help you define what sets you apart.

Giving them the space and encouragement to bring new ideas and genuine feedback to the table is critical for your business. And when you give them that runway, they’ll take off. They’ll be more connected to your business, which will cultivate your competitive advantage even more. After all, your people are often your most valuable resource. Make sure to treat them like they are.

Once you have deeper insights into what your competitive advantage truly is, it’s time to develop business goals to bring them to the forefront of your efforts. Think through what your advantages can help you build upon within your business. Then build the specific, measurable, attainable, responsible, time-specific (SMART) goals that will drive your business successfully.

The great thing is once you have insights into what makes your business stand apart, your goals should be easy to figure out. You’ll know what subtle changes you can make to increase your business. And you’ll start to see how to build upon the successes that are already in place. Know what you’re doing well and build from there while also improving when you can. It will go a long way in your business.

Once you know what sets you apart from the competition, it’s time to build a strategic plan to get the word out. After all, potential customers or clients want to know what you have to offer. Start building that plan by thinking through new channels where you could exist and the best way to communicate what you have to offer. Think through potential new markets, new distribution channels, and spaces where your customers exist already. Then build from there.

A good marketing plan should include everything from social media and digital marketing to printed advertising and beyond. It should be diverse enough that the right target market sees what it is you stand for across multiple touch points. And it should be clear and effective at communicating what differentiates you from everyone else. Make sure you have a great marketing team to help you execute this vision.

Are you feeling inspired to find your competitive advantage? It’s never too late to get started. Do you have thoughts on what sets you apart or want to share how you’ve brought your competitive advantage to life? Share it in the comments below.

Jim Allen is a business leader and entrepreneur who has built one of the top-producing real estate groups in the Triangle. He is President of The Jim Allen Group, which is consistently named one of the top real estate teams in North Carolina and even North America.