Competitive Differentiation

One of the more exciting, and challenging, aspects of being an entrepreneur in a new, fast-growth market is the constant stream of changing competitors. New markets are very different from established markets in that they typically innovate faster and have lower barriers to entry (the technology doesn’t have to be as fully baked to be competitive). My advice is to pick a competitive strategy and don’t try to be all things to all people — a recipe for failure (trust me, I’ve tried it!). Of course, the strategy should be fluid and adaptable, but it is better to have a solidified one down on paper rather than none at all. Here are some competitive differentiation categories to consider:

• Target company sizes
• Target company verticals
• Product price points
• Product functionality (be opinionated!)
• Geographic targets
• Support policies (phone, email, 24/7, etc)
• Sales tactics (aggressive, nice guy, etc)

Again, I recommend putting a competitive differentiation plan together, aligning the team, and using it to make decisions quickly.