What's Your Secret Sauce?
Did you know there are 8 Key Drivers of business value? We believe that every business owner should know these drivers and understand how to influence them. Building a business based on these drivers creates a business that is more enjoyable to own and more sell-able when you’re ready.
Today, we want to focus on Monopoly Control. It’s a driver many small business owners struggle to implement. Monopoly Control is how well your business is differentiated from your competition.
Having a clear differentiator allows you, within reason, to set your price. This leads to better financial margins and a higher profit, or the ability to invest back into your business in forms of advertising. Investing in advertising creates a domino effect as it continues to strengthen your differentiator and attracts more clients.
You may not be thinking about selling your business now, but it’s never too soon to think about what will make your business more sell-able! Having a monopoly control means your business is harder to replicate. The lack of strong competition is attractive to a buyer and it prevents them from thinking they can simply start their own business that does what you do instead of acquiring your business.
Establishing a monopoly control is a smart move in any business. It makes your business better to own right now and makes it more valuable down the road, but how do you get there? For most small businesses the answer is better marketing.
That’s right, your ability to create a monopoly comes down to your marketing strategy. Your marketing strategy must set you apart from the rest of your competition. You need a “secret sauce” that potential clients value.
The problem many small business owners fall into is that they try to make their “secret sauce” about customer service. It can’t be customer service. First, a potential client hasn’t experienced your customer service. Second, everyone says this. Is customer experience important? Yes, of course it is! However, if everyone uses customer service as their “secret sauce,” how do you stand out? You don’t.
Instead you need to clearly define what sets your business apart. Why should potential clients choose you and be willing to pay more than your competition? It must be hard to replicate. Something that your potential clients will value. Unfortunately, we can’t tell you what your secret sauce is, but start asking the following questions to help determine what it could be:
- What would potential clients be willing to pay more for?
- Does your business have an expertise or way of doing something that adds value for your clients?
- Are there any frustrations that your clients experience in your industry that you can solve?
- Can you bundle products/service together in a unique way?
Your secret sauce may or may not be something that your business does now. It might require some motivation, or a redesign of your business. But the ability to establish a monopoly control is well worth the effort.
Just always remember, monopoly control is decided by potential clients. It must be something valuable to people who have never heard of your business, not just the clients you already have.