I’ve listened to several presentations in the past couple of months and one of the features of each presentation was a competitive analysis. What bugs me is that the founders/CEOs of these companies, and the audience listening, fell right into the trap of trying to differentiate their technology from the technology of the other companies.
True decision-makers, the people who have responsibility for the bottom line, do not buy based on a hair’s breadth difference between your technology and the other guy’s. They decide—and sign contracts for—better outcomes than they have now.
One CEO said his start-up company’s revenue goal for 2019 is $550K. When I asked him to speak to how his company’s technology would provide $5.5 million in value to his buyers, collectively, he could not say.
This is merely 10 times the investment, not really a huge sum, and it is critically important that every CEO/founder/president/managing partner be able to articulate this modest ROI. That’s what the decision maker wants to know. If you can’t tie your offering to this kind of outcome, it doesn’t matter how clever or unique your technology is.
The financial value proposition is critical for all companies, whether yours is a law firm, a home remodeling company, an accounting firm, a jewelry store or any of the vast myriad of businesses in the economy.
Don’t Do a Competitive Analysis
The traditional competitive analysis is at best a guessing game. You have to use observation and publicly available information, but you can’t really know what other companies provide in terms of value to the right buyers.
Provide Evidence of Value
What you can do, and can provide evidence for, is talk about the outcomes and value your company provides. Which do you think a prospective buyer would gravitate to: a list of features where your company has one or two more check marks than the other companies; or, a few powerful case studies that prospects can relate to in terms of the value your company delivers to your buyers?
During my 20 years of working with owner-run companies, my clients have repeatedly boosted their revenue growth by emphasizing high value to their buyers. I know that the nearly $20 billion in revenue earned by my clients has come from a tireless and persistent commitment to value.
What are you doing to go deep into the value your buyers will enjoy from choosing your company? Instead of splitting hairs on your inputs, create a powerful case based on buyer outcomes and value.
Why work with me?
You know your business inside and out—and that is often the true barrier to reaching bigger revenue and profit goals, and building owner wealth. To you, everything seems normal, and it generally works.
My perspective, built from years of advising a wide variety of owners, is not constrained by what to you is ‘everyday normal.’ I recently shared a success story about how an auto services company implemented outbooking to increase the frequency of auto services. The valuation expert I was sharing this with took a note. He would implement an outbooking effort for his own company to increase the number of his clients who returned for an updated valuation after one year.
He is an expert in his field and his business. And this one story of one client of mine, in a very different business, will improve his own company’s revenue. It will turn one-and-done into repeat buyers.
You can’t take action on what you don’t see. I can! Give me a call to schedule a Listening Call because you will definitely make more money in 2019 when I serve as your catalyst for rapid growth. 703-790-1424.