Mac Wrigley

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Do You Have a Unique Value Proposition?

In Sales, Social Media on January 26, 2012 at 7:00 am

Most of us spend our whole lives trying to fit in. In middle school, we cling to any type of social camouflage that will help us blend in and not be singled out. It’s Survival 101 during those awkward years. Somewhere along the line we outgrow this phase and seem to find our footing. However, this social pressure to blend in can hamper our efforts in business. If you’ve ever been asked the question “Why should I buy from you versus your competition?” you know all too well how important it is to be able to differentiate yourself from your competition.

There are some very literal ways we can stand out. For example, I’m tall, bald, and pasty. I stand out in almost any crowd, whether I want to or not. If you’re a business owner, chances are I’m taller, balder, and pastier than your banker. It’s become my calling card. It makes me unique and memorable.

For some, it can be difficult to stand out in a crowd. But more importantly, it can be difficult to stand out in your field. Many of us do not have a decent answer to the above question. We fall back to clichés such as “My customer service is better than theirs” or “My services cost less”. The former isn’t really a differentiator. Customer service gets you a seat at the table. If your service is poor, you’re probably not in business any longer—particularly in this challenging economy. The latter is a trap many of us fall in to. We allow our products or services to become commoditized and allow price to be the only differentiator. Often, we make this an issue and essentially teach our prospects to only differentiate on price, regardless of value.

This lack of differentiation is very common in almost any profession. If you are tasked with sales and marketing, however, this issue is of monumental importance. The real issue at stake here lies in what is known as a “Unique Value Proposition” (UVP). Your UVP is a succinct statement that tells your prospect what you do and why it matters to them. It also tells them how you are different. It can be as simple and short as a single sentence, or it may be a few sentences. The important thing is that it is clear and understandable to your target audience (your prospect or referral source) and that it sets you apart from the crowd.

I recently met with a group of professionals and discussed the importance of having a UVP. Each of us went around the table and offered up our own UVP to the group and received feedback. Most of us really liked our UVP’s but found that some changes needed to be made. We found that the best UVP’s had a few things in common.

Here are some important things to consider in crafting your Unique Value Proposition:

  1. Be clear and concise. Be careful not to use your own industry specific language that your audience might not understand.
  2. Explain what you do and why it is important to your audience.
  3. Differentiate yourself. What do you do different from your competition? Why does this matter to your target audience?
  4. Consider your UVP from your prospect’s perspective. Do they really value what you are emphasizing? If they don’t, it isn’t really a differentiator and your UVP is just a UP without Value.

Remember, your UVP is all about your prospect. It should be meaningful to them because it’s an ongoing concern for them or it should make them aware of a problem they might not have considered. It is also important to routinely check and update your UVP as your market and competition change. You may also make adjustments to the value you provide your clients. Any such changes may change your UVP.

Here is my UVP:

As a Business Banker, I provide banking solutions for businesses and their owners.

Many bankers are really just loan officers. In other words, their main tool is a loan. My clients have told me the problem with this approach is when your only tool is a hammer, every problem looks like a nail. While a loan is a very useful tool, there are also many other tools available to help businesses achieve their goals. Not every business problem can or should be solved by a loan. A banker who focuses solely on making loans views all problems through that lens.

By contrast, I am a client focused banker. I put the client at the center of everything I do. My success comes from guiding my clients to the achievement of their goals. I use a consultative approach in helping business owners resolve both routine and complicated problems and finding workable solutions.

Just as I believe not all banks are the same, I believe not all bankers are equal. What additional value does your banker provide for your business?

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Don’t Be an Oxpecker

In Change, Management, Sales on September 10, 2011 at 12:17 pm
Yellow-billed Oxpecker (Buphagus africanus), M...

Image via Wikipedia

If you’ve ever managed employees, or been a part of an organization, chances are you’ve come across an oxpecker. Almost every organization has them, and they can be a real nuisance. You might be asking yourself, just what is an oxpecker? Aside from being a fun word to say, an oxpecker is a little bird that lives in Africa and makes its living riding around on the back of large mammals (zebras, giraffes, wildebeests, etc.) and eats the parasites off them.  This might seem like a helpful bird, until you consider how they’ve also been known to dig at their hosts wounds as well. Ultimately, the oxpecker is just another parasite, albeit one who has climbed the ladder to “king parasite”. They have been blessed with the gift of flight, yet seem content to take the free ride instead.

This, then, begs the question: Does your organization have an oxpecker problem? These are the free ride/free lunch guys. In other words, those who do not take initiative, have no fire in the belly, or seem incapable of making good things happen.  In sales, these are the low hanging fruit guys. Those who might be great with what walks in the door (or eating the parasites that are right in front of them) but are not capable of finding the hard to reach fruit. Organizational oxpeckers wait for the phone to ring, the prospect to knock on the door, or some other even to happen. They don’t take the initiative to make things happen.

Sometimes, all it takes to fix the problem is for the oxpecker to become self-aware—to realize they are perceived as oxpeckers. However, most often the oxpecker has settled into this role over a long period of time. They’ve become accustomed to the path of least resistance. This type of employee can be extremely difficult, if not impossible, to turn around. The key is to take away that low hanging fruit that allows them to settle for mediocrity and never reach their full potential. If your oxpecker is in outside sales, but seems content to settle for whatever prospect calls in or walks in the door, the solution might be as simple as changing their incentive structure to disallow walk-in or call-in business that they did not develop.

Management is often the playing the role of agitator rather than micromanager. Stirring things up via change to incentives is often the most effective route to take. Managers might not be able to motivate an employee; however, they can provide an environment where in the employee might better motivate themselves.

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The Top Ten Country Songs for Entrepreneurs

In Change, Management, Risk on July 25, 2011 at 8:05 pm

#10. Act Naturally, Buck Owens

Someone once said don’t focus on money, focus on your passion, and money will follow. It’s great advice for any entrepreneur. Do what comes natural to you. Find a way to make money leveraging your skills or unique talents. If nothing comes to mind, you probably just haven’t found it yet. You are unique in your own way. Finding that uniqueness and being able to demonstrate your value to others is the first step in starting a business. Be authentic.

#9.  Standing Outside the Fire, Garth Brooks

This one was an easy choice because of the great life lesson the songs teaches the listener. Those who stand on the sidelines and risk nothing cannot criticize those who dare to take the chances. Entrepreneurs are risk takers. It isn’t that they do not value their own time, assets, families, etc. The best entrepreneurs believe in themselves and their ideas. They understand their unique value to the market. Their success or failure often hinges on their ability to communicate that value.

#8.  One Piece at a Time, Johnny Cash

This classic by Johnny Cash tells the story of an auto worker who steals a part or two every day from the GM factory where he works so that eventually he’ll be able to reassemble a new car for free. While the story is amusing, there is a business lesson as well. Businesses, like cars, are built one piece at a time. Piece by piece, brick by brick. There are no shortcuts. If you do not take the time to lay the proper foundation, to put the necessary systems in place, to plan, execute, manage, control, verify, and hold yourself and your employees accountable, you will fail. End of story.

#7.  Hard Workin’ Man, Brooks & Dunn

It goes without saying that being your own boss isn’t always as great as it sounds. If you aren’t ready to work harder at your business than you ever imagined, it is probably not the right venture for you. Remember, no investor, bank, partner, or employee should ever be called upon to believe more in your business than you do. If you are asking any of these people to take more risk than you are willing to take, then go back to #9. Do you truly believe in your ideas and your business? If so, you’ll find a way to overcome obstacles; you’ll prove to these partners that you believe by pledging your time and talents as well as your financial resources, in order to make the venture successful.

#6.  Last Thing I Needed First Thing This Morning, Willie Nelson

Can anyone sing a sad country song better than Willie? In business, as in life, things can and will go wrong. Prepare for the unexpected. You should have contingency plans for your contingency plans. If you are seeking financing and are speaking with an investor, partner, or banker, and they ask you what you plan to do if they do not finance you—you better have an answer. If that moment is the first time you’ve given thought to that question, something is wrong. Go back to #8 and reconsider your business plan. Have you thought the idea and its execution all the way through?

#5.  Everything that Glitters (Is Not Gold), Dan Seals

This song has a few different applications. On one hand, be careful with your revenues. Be thrifty and control your expenses. Many businesses find they can make money quickly and sales aren’t the problem—it’s controlling expenses.

Another way to look at this song is every idea or market niche that may seem appealing, might not be the best fit. Most businesses have limited resources: be they time, money, personnel, etc. Spreading these resources too thin trying to be all things to all people is never a good strategy. Know who your market is. Know who your customer is. If your target market is defined as “everyone”, you have a fundamental problem.

#4.  In A Week Or Two, Diamond Rio

Many a business has fallen victim to procrastination. If you have an idea or plan, implement it. As a banker, the majority of loan applicants that I meet with have good intentions, but after our first meeting fail to provide timely financial statements. In other words, if you are seeking financing (from a bank or investor or otherwise), find out what information the decision maker needs to see from you, then provide it. Be prepared. One particular business owner I met with could have saved $90,000 in annual cash flow by refinancing some business debt. By the time he got around to providing the necessary financial statements and tax returns, his business had slowed down and his financial situation had changed. He no longer qualified for the loan as he did when we first met nearly six months before. In other words, he cost himself $90,000. Think of what those dollars could have meant to his business or to him personally. Procrastination is devastating to a business.

#3.  Things Change, Dwight Yoakam

Taking a cue from the previous song, things change. In the prior scenario, the fact that the business qualified for the loan upfront was great; however, failure to act in a timely fashion subjected the business to the ever changing dynamics of the market. Sales fluctuate, seasonality occurs, expenses can increase. With so many variables in the equation, it is important to be decisive. This is not to say “run out and get a loan”. The simple truth of the matter is a loan isn’t always the right answer for every business. It is merely one potential solution to a business need. However, because things change, planning is crucial. Plan for contingencies. Perform gap analyses to understand where your weaknesses lie. Revisit your plans to gauge your level of execution. Just because you knew who your customer was six months ago, doesn’t mean you know today. Things change.

#2.  The Gambler, Kenny Rogers

I couldn’t not put this song in the list: “You’ve got to know when to hold ‘em, know when to fold ‘em, know when to walk away, and know when to run. You never count your money when you’re sittin’ at the table, there’ll be time enough for counting, when the dealing’s done.” Understanding when to take on risk and when to avoid risk is at the center of sound management. Timing matters. Don’t count your chickens too soon. Remember, things change. I know of one business that had $500,000 cash at the close of the second quarter and was insolvent by the close of the fourth quarter. Knowing when to walk away is just as important as anything.

#1.  Live Like You Were Dying, Tim McGraw

Finally, ask yourself what you would do if you knew you were going to die today, tomorrow, next week or next month. If you only had a year to live, what would you do? Make each day count. If you can make your passion your business and your business your passion, you’ll be successful. This may necessitate finding the proper partners and experts to help you in your venture. They may be partners, investors, mentors, or others. They may be your unofficial board of directors (banker, attorney, CPA, business insurance, etc.) If you believe in yourself and your idea, if you believe in your business, find those partners who believe in it too. Surround yourself with those who want to see you be successful. If your business is a startup, they can help you prepare to get things going. If yours is an established business, they can help you see holes in your strategy and opportunities you might have missed. Do all those things that will help your business be successful, but do it now.

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