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Selling your business? How identifying your unique selling propositions can help
One of the steps to getting your business ready to sell is to identify and get crystal clear on your unique selling propositions (or USPs). Defining your USPs will not only assist you in boosting sales and revenue, but they can also help you find the ideal buyer when it comes time to sell your company.
If defining your USP and using it to your advantage is something you haven't done before, now is the perfect time to identify and communicate what sets you apart. The following will help you understand how identifying your USPs might aid in business sales:
What is a USP?
Your Unique Selling Proposition (or USP) differentiates your offer from others on the market. It's more than just a slogan or marketing offer; it sets you apart from competitors and keeps customers returning to you again and again.
A firm grasp of your USPs can simplify your marketing efforts and attract the right customers. Additionally, this can make it easier to position yourself as a valuable business to purchase when it comes time to sell. Buyers will want to know that your business has a solid sales track record and can stand apart from the competition.
How do you go about defining your USPs?
Identifying and getting clear on your USPs requires creative thinking and researching. But once they're identified, they can help your business grow and ultimately maximize the value of your business when it comes time to sell.
To start identifying your USPs, ask yourself a few questions:
What makes your business unique?
What sets you apart from competitors?
What brings customers back for repeat purchases?
Here are a few other ways to identify your USPs:
Look at your business from your customer's point of view.
Understanding what your customers value about your product or service can help you identify what differentiates you from your competitors. It would be a good idea to reach out to current customers to see what they have to say. You need to know the following:
What are their wants and needs?
How can your business' products or services solve their problems?
What do your ideal customers love, and what are they already talking about?
What characteristics (such as age, geography, interests, and values) best describe your ideal client?
Conduct a competitive (SWOT) analysis.
To understand what sets you apart from your competitors, you'll need to research what they offer and how they are marketing a similar product or service.
A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is one way to do this. This will help you identify where you shine and where there's room for growth. First, do some thorough research on your competitors and dig deep into the following questions:
What are my strengths and weaknesses?
What distinguishes your goods or services from those of your competitors?
How does your pricing strategy differ from that of your competitors?
Where are competitive businesses leaving room for new opportunities for you?
Where are your competitors already succeeding?
What are their customers saying about them?
How are their customers responding to their USPs?
Understanding what more you could offer and what differentiates you from your competitors can help you narrow in on your USPs.
What are your business's values?
While it's important to know your customer's wants and needs and determine what sets you apart from your competitors, it's also imperative that your USP is rooted in your values.
Your business's values may be the very thing that separates you from your competitors. Be sure to ask yourself:
What inspires you?
How do you want your business to be perceived by prospective buyers?
What message do you want to convey to your customers, and what would you like them to know about your business and mission?
What message do you want to convey to potential buyers so they better understand your business?
Lastly, remember that while it helps to be unique, your USPs should be the intersection of what your business does well and what customers want and will pay for.
How can you effectively communicate your USPs?
As mentioned, getting clear on USPs can help you increase sales and the value of your business overall. But this is also a strong point for potential buyers when you're preparing to exit your business.
Additionally, should you choose to work with a business broker to sell your business, they'll want to learn as much as possible about your business to help you market the sale.
To use your USPs to their full benefit, you'll need to get comfortable confidently sharing your key selling points. Consider sharing the following to help your business stand out from the crowd:
Share your story.
If you're looking to connect with potential buyers, telling your brand's story is a great way to do so. Here are a few great tips on how to share your business's story:
Be personable, honest, and authentic with your story.
Keep the details clear and concise.
Include a conflict and resolution in your story.
Make sure the story also adds value to your reader.
Share customer testimonials (social proof).
Social proof of your company's performance is one of the best ways to demonstrate the worth of your enterprise. Sharing testimonials and case studies using real life examples from current customers may do more to validate the value of your business than any other form of marketing.
Here are a few ways to gather customer testimonials:
Ask recent customers to share their experiences in response to praise.
Reach out to your email list asking for honest feedback.
Consider including a photo of the customer to tie it together.
Share your vision and goals.
Similar to storytelling, potential buyers will better understand your business when they know what you stand for. Likewise, they will want to see a vision for your business and what's possible for the future. Sharing why you started your business can help them see that vision.
Be sure to share the following:
Mission
Vision Statement
Goals for the future
Once you feel you have a firm grasp on effectively communicating your USPs, be sure to share them everywhere: Your website, social media, interviews, and pitches.
Have questions?
Identifying and clarifying your business's unique selling propositions can be a massive advantage when it comes to selling your business. Not only does it help with marketing efforts, it also attracts potential buyers by allowing them to see the total value of your business.
If you have questions about what else you can do to prepare your business for sale, contact us today for a free consultation.