Finding Your Value: Defining What You Offer by Comparing to Competitors

Finding Your Value: Defining What You Offer by Comparing to Competitors

When you're building your business, one of the most important steps is figuring out where you stand in the market. What are other businesses offering? How do your services, price points, and expertise stack up? This is where researching your competition comes in. By understanding what others are doing, you can find your own space to shine.

But if you’re not sure where to start, my advice is to begin with your Minimum Viable Product (MVP). Once you know your core offering, you can look at how it compares to what’s already out there—and then work from there to refine your unique value position.

Step 1: Start with Your Minimum Viable Product (MVP)

The concept of a Minimum Viable Product is simple: it’s the most basic version of your service that still delivers value. This is your starting point—your “bare bones” offering. By narrowing down your service to its core elements, you get a clear sense of what you do well and what customers really need.

For example, when I started Optimize, my MVP was really hard to define: I helped small businesses streamline their operations to save time and work more efficiently. But how do I put a title on that? Digital Adoption Specialist is a title that is all encompassing, given that with every solution that helped streamline there was a digital aspect. This allowed me to move through the next steps and refine Optimize offerings. 

Step 2: Look at the Competition

Once you’ve defined your MVP, it’s time to see how it compares to what’s already out there. You don’t need to be the only one offering a particular service to succeed, but you do need to know how your offer fits into the bigger picture.

Here are some ways to research your competitors:

• Check Their Websites: Start by browsing their websites to see how they present their services, what pricing they offer, and what their value propositions are.
• Read Reviews: Look at customer reviews or testimonials on competitors’ sites or third-party platforms like Google, Yelp, or Facebook. What do their customers like about their services? What complaints do they have? This will give you insight into what you can do differently (or better).
• Follow Their Social Media: Pay attention to how they engage with their audience. What kinds of content do they post, and how do people respond? This can give you a feel for their tone, branding, and overall messaging.
• Talk to People: If you’re in a position to do so, talk to customers who have worked with your competitors. This can give you direct insight into their experience and how you can differentiate yourself.

When I was refining Optimize, I looked at other business efficiency consultants and fractional COOs. I noted the common themes in their services, what they focused on, and their pricing structures. By understanding the competition, I could see where my offer fit and where I could stand out. Also note that we are efficiency experts and I was offering Fractional COO services. 

Step 3: Identify Your Unique Value Proposition

Once you’ve done your research, it’s time to figure out what makes you different. This is your Unique Value Proposition (UVP)—the thing that sets you apart from your competitors.

Ask yourself:

• What do I do better than anyone else?
• What pain points can I solve that my competitors can’t or don’t focus on?
• What makes my approach unique or more effective?

For Optimize, my UVP became clear; while many of my competitors focused on larger corporations or long-term consulting, I honed in on helping small to mid-sized service-based businesses streamline their operations quickly and efficiently. I emphasized hands-on, practical solutions that business owners could implement right away, offering flexibility and quick results. This helped me differentiate myself in a crowded market.

Step 4: Refine Your Pricing and Service Offerings

With a better understanding of your competition and your unique value, you can now look at how your pricing and service packages compare. You don’t need to be the cheapest option to succeed, but your prices should reflect the value you offer.

When I looked at my competitors’ pricing, I made sure that my rates were aligned with the level of service and results I provided. But I also knew that I brought a unique angle with my focus on smaller businesses and my hands-on approach. This helped me justify my pricing while staying competitive in the market.

Step 5: Test and Evolve Your MVP

As you gather feedback and learn more about your competitors and customers, your MVP will likely evolve. This is a good thing! It means you’re growing and adapting based on real-world insights. Continue refining your service offerings and messaging to better meet the needs of your target audience and stay ahead of the competition.

For Optimize, this meant expanding my services from purely operational efficiency to include things like virtual task support and fractional COO services, based on what I saw my clients needed most.

Conclusion: Stand Out by Knowing the Market

Understanding your competition is key to building a successful brand, but it’s just as important to know what sets you apart. By starting with your Minimum Viable Product, researching the competition, and refining your Unique Value Proposition, you can find your niche and deliver something truly valuable to your customers.

Remember, it’s not about being the only one offering a particular service—it’s about being the best at what you do and communicating that clearly to your audience.

‍