Differentiate by leveraging Opportunity

Progress is measured by the degree of differentiation within a society. Herbert Read

In order to be irreplaceable one must always be different. Coco Chanel

Niches are found by recognizing Opportunity

I met one very on-the-ball Business Owner who said to me that people who don’t take advantage of opportunities made him really angry. What fascinated me about that is if you think like that, then you can’t help but see opportunities. It opens you up to them. But why? Belief? Purpose? Identity? I believe all are part of the equation but I think there are two major keys to finding out just not any opportunity, but the all-important low hanging fruit. You need to spend the time not just looking for these great opportunities; you need to develop them. You also need to understand them well enough to know what makes them special. I think most Business Owners don’t do this well. They have a tendency not to put in the effort to find the best “fruit trees”, much less to cultivate/nurture them for optimal production. I think many simply don’t know “how to”, nor do they see the value of learning to do so. It’s a matter of searching, seeking, uncovering and understanding enough to be able to fit it all together; solve the puzzle. To actively seek and understand the potential.

You can’t be everything to everyone

Restaurants are a good example of why differentiation is important. There are so many of them that it drives a hyper-competitive environment. Can you imagine a restaurant trying to serve everything? I don’t believe it’s logistically possible. No one can be good at everything. They couldn’t afford the equipment required to make a great breakfast, pastries, gourmet dinner, pizza, Chinese, Sushi, etc., much less have the expertise and especially when starting out. The same is also true in other industries. Imagine a small law firm trying to market themselves as the end-all, be-all of all things, law. Not even large law firms try it, although, given large box store success, I wonder if there might not be a place for a one-stop type of shop, but that in itself is a niche and supports the point. I recall a pair of entrepreneurial hopefuls that answered the question, “Why would someone want to do business with you?” with, “We do everything.” I suggested that if they couldn’t provide a compelling answer to that question, then their efforts would likely be wasted. If you have no competition, and are the only game in town, you might be able to get away with a lack of focus/differentiation. But, bring in a single competitor who can offer their wares in a more compelling way and you’re in trouble.

Businesses need to provide a reason for customers to choose them

Why do you go to a particular restaurant? There’s a reason why you choose a particular eating establishment and it certainly isn’t because they offer everything. More likely, it’s because they have the best Shawarma’s around, or it might be because they’re quick and inexpensive, or that you can count on them to be the same every time, or maybe you’re just in the mood for something particular, etc... People make choices for a reason and your business offerings need to satisfy those reasons.

Differentiation is the key to “succeeding”

I worked with one exceptional business person that has differentiated really well. So well that the company’s revenues doubled in a year, but even for this talented business person, it took some time to figure it out. And, interestingly, despite that amazing accomplishment, he still feels he hasn’t quite nailed it yet. As he puts it, he’ll talk to anybody, but what he’s really saying is that he’s more than happy to take the time to search for treasure under every stone. He spent time to understand his company’s strengths and what was important about them. And he figured out that it put him in a unique position to work with a relatively untapped and lucrative market segment. And of course, there’s a lot more to it, like this particular business of not only understanding the opportunity, but also having the confidence, talent, motivation and wherewithal to pursue it. It was pretty impressive to watch what resulted from the committed focus on the evolution of insights when no particular component seemed of particular significance. So, while an insight may not feel particularly significant, that doesn’t mean that the sum of them won’t add up to something amazing!

You Need a Compelling Purpose to provide the required impetus/motivation/drive

I know another business owner that was in the same industry (he’s getting out) that wasn’t interested in taking the time to explore improving his business. He’s also very smart, self-motivated, all the things you’d think an entrepreneur needs to be and yet he woke up one day and decided he simply didn’t want to do it anymore (classic burnout). His business had become drudgery to him, lack-lustre and without excitement. It didn’t allow him to be creative, as he desired, and his lack of progress frustrated and drained him. Nothing is perfect, and we can’t have it all, or even have every day be a good one, but you want your vocation to be compelling for you; to provide you with enough purpose to act and feel good about it. If it doesn’t, then you’re in the wrong profession. I believe he made the right choice. There wasn’t any light at the end of the tunnel unless he did things differently and he simply wasn’t interested in doing so. And, he’s not unique. I’ve met many like him. But, if he had taken the time to understand what purpose could be compelling for him, and how his business supported him in that, would it have made a difference? I believe so, but here’s the thing: you need to figure that out before it’s too late. And obviously, the Business Owner in the first example had that figured out. The point being that a precursor to being able to leverage opportunity is you have to a reason to explore it in the first place.

In summary:

The first business owner took the time to understand what he needed to do to take advantage of a unique opportunity and ended up differentiating in a compelling way. So, the next time you think that spending the time to really explore your strengths, and finding low hanging fruit, is a waste of time: think again. Businesses need the time to work through that type of understanding, and I’m not personally aware of anyone being able to do it in isolation. It takes ongoing work, focus, and input from multiple sources (we all need muses), rumination, etc. So, why don’t more people do it? I’m guessing because most don’t understand the pay-off or don’t know how to. The first step is to understand and accept it (if it’s true), and it would be wondrous if this article helped some people with that. The next step is to get to work and leave no stone unturned!