Aside from the fact that lack of, and/or mismanagement of cash flow equates to 82% of small business failures; there are 3 other incredibly important factors contributing the overwhelming failure of small businesses these days. Many small business owners are lacking in the following:
Reason #1: Not really in touch with customers.
Reason #2: No real differentiation in the market.
Reason #3: Failure to communicate value propositions in clear, concise and compelling fashion.
First and foremost, competition only exists when you’re doing the exact same thing as everyone else. And if that’s the case, you have major challenges ahead of you.
Mark Cuban said, "there are 10,000 people doing the same thing, why would you want to be 10,001?" If you (as a small business owner) want to survive in today's overstuffed, ultra competitive business climate, it's absolutely imperative that you figure out a way to break apart from your direct competition and create your own niche.
As a small business owner, you know you have plenty to offer to your target consumer. However, when consumers aren't coming to you for your services, it can be very difficult to maintain your business. Pair this with challenges managing cash flow and finding business funding, and you'll find yourself in a business climate that's not suitable for growth. You may be wondering, "what am I missing?" There are a few key ideas that many small business owners pass over in favor of focusing on their personal goals. One of these is finding your company's unique selling point, and it can make a huge difference when it comes to appealing to your target audience. Here's how to identify the perfect USP for your needs.
#1. Why should your customers believe in your brand, product or service?
#2. What gives you the edge over your competitors?
#3. How does your business stand out in the wider market?
Chances are, the biggest reason you aren't succeeding is that you aren't truly in touch with your target customer. If your product isn't selling, it's time to reach out to your target audience and get their honest opinions. Without information from the people you are trying to sell to, it's very difficult to improve your products and sales strategies. Asking your loyal customers why they're interested in your product can help you better identify what's unique about your company. This will enable you to market your USP more effectively to more people. Once you know what your consumers want to see, you can then think about how you will facilitate that new direction in your marketing or product development, perhaps using funding such as small business loans to fuel your new ideas or tap into new markets.
Getting your USP out there
A big problem that many businesses also have is that they don't communicate their unique selling points articulately to consumers. A unique selling point is anything that can be used to set your product or service apart from other items on the market. One thing that many business owners don't realize, however, is that your unique selling point doesn't actually have to be very unique, it just has to be different to how your competitors are marketing themselves. This will allow you to set your company apart from other companies on the market and appeal to customers that are seeking out your unique standpoint. Look, if you can't specifically define what you do and why you are different than everyone else, nobody else can either.
Would you do business with you? If yes, why? If not, why? You know your business inside and out, but potential customers don't. So, tell them what makes your business unique, and why they should do business with you? What "value" can you offer them and how can your product, or service, make a positive impact in their life? Like it or not, consumers don’t care about you, or your business; but they will care if you can add value to their life. Think about what impacts your buying decisions, and integrate them into your business strategy. Bottom line, small businesses are imploding fast than ever before, because they are simply not unique. And until small business owners figure out a way to be unique in their space, they have zero chance of survival. There's no denying that we are in challenging times, and it's rough out there.... BUT, YOU CAN DO THIS IF YOU ARE REMARKABLE.
Taking your business to new heights
Once you've identified your USP, you can then use your working capital to promote it. At LVRG, we provide fast small business loans and cash flow to companies in many different industries. We lend to companies in the US and are dedicated to helping small business owners in our country grow the economy. Having a consistently healthy cash flow is key to ensuring that your business grows and succeeds. So if you’re an existing small business owner in the United States, contact us today to learn more about our lending options. We're passionate about helping you find incredible solutions and watching your business grow.
Author: Charles Barr, Co-Founder & Director of LVRG Funding.