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Ten Action Steps of Bankable Business Plans- Step 3 9/9/2008 11:48:59 AM
Action Step # 3: Choose A Winning Strategy: How will you distinguish your product or service from others?
Action Step # 3
Although there are millions of types of businesses, there are actually only a few basic strategies that can be applied to make any enterprise successful. The first step in selecting an effective strategy is to identify a competitive advantage for your product or service. How will you establish that your product or service is better, cheaper, more delicious, or more convenient? How can you make your company more noticeable than your competitors? What restraints in your business or its industry might determine which strategy you choose?
Your competitive advantage may include designing special features not found in rival products. It may entail superior service characteristics such as speedier delivery, a lower price, or more attentive sales people. Perhaps you’re establishing an image or brand of exceptional quality or reputation. Does your product or service bestow a certain status on its users? Does it create more profits or other benefits for your customers’ own endeavors?
Perhaps you want to position your mousetrap for a primarily upscale market because the best design requires titanium and manufacturing costs will be so expensive only rich people will be able to afford your product. But maybe the mousetrap is so fantastically effective that wealthy people will want hundreds of them around their vast country homes and polo pony barns.
You must have a reason why your business will succeed. This is the competitive advantage your product or service will deliver. Once you’ve established the competitive advantage, you will be able to select the best strategy to reach your goal.
Edward G. Rogoff
Academic Director
Lawrence N. Field Center for Entrepreneurship
Baruch College
Bankable Business Plans
