Your business model must have an “edge”

A key challenge I keep coming across at the moment is many SMEs fail to articulate or unlock their uniqueness. Many entrepreneurs find themselves bogged down by the need to keep cutting prices to remain competitive. This strategy in my view is a road to ruin. I always try to reinforce the point that – selling your product or service is far easier when you have a point of difference. Many entrepreneurs tell me that they are in commodity markets and that’s just the way it is.

I then go on to use the bizarre example of a notebook to demonstrate differentiation – after all a notebook is a commodity – a 14cm x 10cm notebook in Tesco will cost you around £1. However look at the same size Moleskine in Waterstones – it will cost you £10. If everyone bought notebooks on price they would all go to Tesco. Positioning through innovation is a key route to gaining competitive edge. When you open any Moleskine book there is a small fold away piece of paper titled “The history of a legendary notebook” – it goes on to reference famous people that have used these notebooks. There is a brilliant line that goes… “used for the past two centuries by great artists and thinkers, including Vincent Van Gogh, Pablo Picasso, Ernest Hemingway and Bruce Chatwin. The trusty, pocket sized travel companion held their sketches, notes, stories and ideas before they became famous images or beloved books”. Then go and have a look at their website www.moleskine.com – they have made the business of a notebook a art form. They use storytelling to bring the notebook alive and engage the customer in a truly unique experience.

The lesson is – we can all find a point of difference if we embraced innovation into our business model. The invisible force of creativity, however must be embedded within yours and your teams mindset.

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