The Good and The Bad

Let’s talk about the elephant in the room. Unless you are inventing a never before seen once-in-a-lifetime revolutionary new product… it’s probably been done before. Womp womp. Which also means, it’s been done before. You don’t have to reinvent the wheel. In this lesson, you’ll learn how to benefit from a proven business model, why “everyone else is already doing that” is actually a good thing, and how you can stand out even in the most saturated markets.

Validation

Here me out: In most cases, you actually want to be second. Maybe not number two, but coming after another business who has already established a market can be really beneficial. It’s like letting someone else walk into the basement and clear the cobwebs before you come down. They’ve actually done some of the groundwork for you. You can learn from their mistakes, study their strategies, and start from experience rather than starting from scratch. So if you’re worried that “everyone else is already doing it” this is your reminder that that is a good thing. So now that that’s out of the way, how do you differentiate yourself?

How to Stand Out

Let’s looks at a few ways your business can stand out and carve your own space in the market.

Brand Personality

Standing out from the competition can be as simple as better marketing, like Dollar Shave Club. Razors aren’t exactly revolutionary, but launch videos like this one are.

Niche Targeting

Another way to differentiate your business is through niche targeting. Take Patagonia for example, they’re certainly not the first business to make outdoor gear, but their heavy focus on sustainability has built them a loyal customer base among environmentally conscious consumers. Campaigns like the Worn Wear campaign is all about repairing and reusing their Patagonia clothing rather than buying new, and promotes a “reduce, reuse, recycle” lifestyle.

Customer Service Excellence

Skincare is arguably one of the most crowded beauty and lifestyle markets right now, and yet Barefaced by Jordan Harper has absolutely crushed it in a very short amount of time. One of the reasons why? Their customer service is second to none. It’s like having a skincare expert a text or DM away, and their new AI Skin Coach takes the experience to a whole new level.

Price Strategy

Another way to win over a customer is through pricing strategy. Have you ever bought a piece of furniture at Ikea? If you have, you were willing to load your own vehicle, haul that sh*t up potentially multiple flights of stairs, spend hours unwrapping individual pieces and putting them together by hand, all for the sake of getting a good deal. You didn’t go to Restoration Hardware, you went to Ikea. 

Innovation

And finally, just good old fashioned doing it better. Taking a product or service that’s already out there and innovating it, like what AirBnb did to the hotel industry, what Tesla did to the auto industry, or what SoulCycle did to the stale, sweaty, big box gym business model.

The reality for most of us, is we’re probably not going to disrupt an industry, and that’s okay. But we can take pointers from some of these giant companies as we’re starting out. It starts with asking questions like “how does everyone else do it?” followed by “how can we do it differently than that?” 

An example I love is from one of our clients Megan Hansen, the Founder of my Dietitian. In an extremely crowded space with a barrage of supplements, meal plans, apps, and fitness trackers, she said, “you know what every single one of these is missing?” Personal check-ins with a dietitian. Real accountability. So she built a product that did just that, and surpassed her first million in sales in the process.

Your Unique Value Proposition

Once you’ve gotten clarity on how you’ll do business differently, it’s time to create a unique value proposition. This is a clear statement that essentials answers the question “why choose us?” One of the best ways to create strong UVP is by listening. What problems and pain points does your ideal customer have, and what’s their dream solution? Use the research you did in the ideal customer discovery lesson to come up with a compelling UVP statement. Your UVP should be clear, concise, memorable, and aligned to your brand goals. Here are some examples to help you get started.

• Slack: “Slack brings all your communication together in one place. It’s real-time messaging, archiving, and search for modern teams.”
• Airbnb: “Belong anywhere. Airbnb offers unique homes and experiences, allowing you to live like a local while traveling.”
• Dropbox: “Dropbox simplifies your work with secure file storage and sharing, making it easy to access your files from anywhere and collaborate with others.”
• Tesla: “Tesla offers high-performance electric vehicles with cutting-edge technology and zero emissions, redefining the future of driving.”
• Warby Parker: “Warby Parker offers high-quality, stylish eyewear at a fraction of the price, with a convenient home try-on program and a commitment to social responsibility.”
• Dollar Shave Club: “Dollar Shave Club delivers high-quality razors and grooming products straight to your door for a low monthly fee, eliminating the hassle of in-store shopping.”
• Nike: “Nike provides innovative, high-performance athletic wear and gear designed to help you achieve your personal best and inspire you to push beyond your limits.”
• Everlane: “Everlane offers high-quality, ethically produced clothing at transparent prices, ensuring you know exactly where your money goes.”

Action Item:

• Craft a unique value proposition for your business.