09 May 6 Impactful Strategies To Differentiate Your Business From Competitors
Standing out from the pack can be incredibly powerful; in fact, working to differentiate your business from competitors will significantly improve the value of your company in the long term. And it’s also a great way to increase sales while developing an enduring brand.
So, how do you create differentiation? There are many executable strategies you can pursue, but we’ve compiled six of the best strategies below.
How To Create Differentiation In Your Business
It isn’t enough to simply be different; rather, you should strive to distinguish your company and its products as the better choice. This will have far-reaching implications for the business, so it’s important to adopt a wholistic approach to creating differentiation. That way, you are able to reap the greatest benefit in the long term.
Develop A Cohesive Brand
Every component of your business, from packaging to advertisements, should reflect that your business is a top-tier asset. Invest the time and money to ensure that you’re clearly communicating what you want said about your brand.
Adopt An Omni-Channel Model
Sales channel diversification will help you stand out from brands that operate purely FBA businesses. Pivot towards D2C (Shopify), brick-and-mortar, and other third-party marketplaces to drive increased sales and access a broader consumer set.
Be Everywhere Your Customers Are
Marketing professionals recommend establishing a presence any place your target audience is likely to frequent. Get your ads in front of customers and make it easy to complete a purchase from anywhere.
Incorporate Long And Short-term Growth Initiatives
The most effective growth strategy combines immediate deliverables with projects that have greater scope. In other words, don’t lose sight of the big picture, think strategically, and pursue anything that adds value to your business.
Have An Exit Plan With Clearly Defined Goals
If you haven’t already, sit down and outline an exit plan. Get granular. Want to retire at 40? You should know how much money you’ll need and how to position your business to earn that figure from a sale.
Never settle. Demand the most from your business and when it’s time to execute a high-value M&A transaction, you’ll be ready. This also applies to the intermediary you retain to manage the process, as you really do get what you pay for.
From branding to preparing your business for sale, deliberate focus on creating differentiation can improve the value of your company. You can emerge as a market leader in your category, but you may also access a higher tier of acquirer should you choose to pursue a strategic exit.
You will likely see an increase in sales volume as well as a higher valuation as the business grows. Consequently, you will be in a better position to continue expansion or to pursue the next adventure when the time comes.
Adding value is one of the most important factors in successfully completing a high-value M&A transaction, and creating differentiation is an effective strategy to do so that also has a positive impact on the development of your brand.
Why Differentiation Matters
The benefits of differentiation extend far beyond valuation. Digital assets are in high demand, but the best deal terms are still reserved for premium assets. Moreover, private equity and other strategic acquirers have stringent criteria that must be satisfied prior to purchase.
An acquirer’s decision to pursue a transaction with you over another business may hinge on something that seems inconsequential. For instance, some buyers may select companies with better branding, a wider competitive moat, or more diverse revenue streams.
Differentiating your business from competitors will improve your ability to match with the most qualified buyer. And, it can also have a material impact on transaction structure and purchase price once a deal is under way.
Ultimately, this will determine whether you’re able to secure the maximum value for your business. You’ve built a valuable asset, so you deserve to walk away from the deal table completely satisfied that you got the best deal possible. By differentiating your business, you develop a stronger platform and are more likely to achieve the optimal outcome.
About Global Wired Advisors
Global Wired Advisors combines decades of transactional and operational expertise to provide institutional-caliber service to our Clients while helping them earn the maximum value for their digitally native or Amazon FBA businesses. If you’re considering a sale, or if you’d like to learn more about our process, click here to connect with one of our Advisors today!
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