Thanks to all our panel and everyone who sent in questions
The chat has ended. Many thanks to our panel and readers for taking the time to join us today. We hope you got as much out of this discussion as we did and we look forward to exploring the points raised in further depth over the coming weeks.
Final thoughts
Before we go, I’ve asked the panel to offer their top three tips on standing out as an entrepreneur
1. Invest in your brand (products are replicable), your brand is what is your own. 2. Have a clear 'why' and lastly 3. Embrace change - markets move quickly and you need to be able to adapt.
1) Establish if there is a genuine problem If there's not a problem to solve, don't continue with the idea.
2) Always keep an eye on the competition that's come up behind you.
3) Obsess about customer service.
Here goes with mine:
1. Know what it is that you do, and do it brilliantly.
2. Put on your clients' shoes every day and experience your business from their point of view
3. Be relentless in your pursuit of what is right for your clients. And know that it's relentless (but what a journey!)
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Can you succeed without a USP?
It is certainly possible, though a USP is a valuable asset to any start up or small business. Without a USP, you will instead need to promote aspects of your business that engage prospective customers and build the loyalty of those existing customers. For example, ensure your organisation delivers fantastic customer service to encourage word of mouth recommendations; tap into an emerging consumer trend in the market; show your heritage and brand values with engaging social media content; or use case studies and acts of corporate social responsibility to prove that you care about your customers more than the competition does.
However, it will be difficult to cut through the noise of a busy marketplace without a clearly defined USP. In the future, organisations in this position should look to develop new products and services that provide a USP where possible.
Will Butler-Adams from Brompton doesn’t agree:
No, you have to be better than the competition in some form, price, service, innovation etc
An interesting point from Ben Spigel from the University of Edinburgh:
Monopolies don’t need USPs, so if you’re the only newsagent in a small village, people’ll have to get their newspapers from you or they won’t get them. That works until a second newsagent comes in. But even a small deli needs something that makes them special compared to the other 3 on the block. Maybe it’s the friendliest service, maybe it’s the best salt beef, maybe it’s the fastest service. But you’ve got to give people a reason to come into your shop vs the one down the street.
Securing investment
A commenter has asked how she can cut through the noise of other crowdfunding campaigns to find investment for her business
Investors look for - An incredible product, backed by a strong brand and its potential, in a growing and exciting market and lead by great people.
Luke Lang, founder of Crowdcube gives his advice on what he’s seen work best for crowdfunding campaigns:
Guardian contributor Sure thing Emma.
Start with your own community first and focus on converting as many of your customers, friends, family and fans as possible. This will give you momentum on the crowdfunding platform that will help you stand out from the crowd. Nothing draws peoples attention like a pitch performing well and making progress.
Then make sure you do regular pitch updates that engage your followers and convert them to investors. Timing good news stories for while you are live can be very effective.
For equity investment, the number one topic entrepreneurs don’t talk about in their pitches is how are you going to make money for the investor. Investors don’t care about how shiny your technology is, they want to know how you’ll engineering an exit within 5 years that will return more money to them than they’ve invested.
Making noise online
One reader is an eyewear designer selling his brand online and wants to know how he can stand out from the crowd
you don't need your own shop, start by finding shops who want to differentiate themselves from the rest, knock up some funky point of sale stuff and see how they go. There is a belief that business takes off overnight, the early years are slow but compound growth is a powerful thing but takes time.
If your pennies are tight look to contact "influencers" rather than paid ads. Initially though get the people who have said they like your products to actually buy them and shout about them
Hi John, sounds like an amazing business idea! You don't need a bricks and mortar shop to grow your brand. In fact, in the early years this is a financial commitment and overhead that you don't need. Concentrate on selling via online channels, via your website, online marketplaces etc. Look at other mail order businesses and model what they do really well. And harness the power of social media - working with influencers as Simon says etc could work really well for you.
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Finding your USP
What makes a good USP and how do you find one?
There’s no silver bullet for this. When you’re in a crowded marketplace, you’ve got to have a new insight or approach that sets you apart from everyone else. You always want to start with the problems customers have. Talk to lots of dedicated crocheters and try to figure out what their biggest annoyances are. Solving that problem better than anyone else becomes your USP.
Guardian contributor A good USP depends on two things; your strengths and your competitors strengths and weaknesses combined with customers perceived value. You need to work out what value your create that your competitors don't currently have and would find it difficult to imitate. That might be your customer service, pricing strategy, brand positioning, product quality/features, route to market etc.
It all starts with a good competitor review and understand what your customers want.
A good USP is something that adds value to your customers / audience. A USP doesn't have to be about the product, it can be your customer journey, how easy you make the purchase, the speed of your delivery, free returns etc. You need to know why your customers buy from you. The whole customer experience needs to be looked at and analysed and the customer put at the heart of everything you do.
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Marketing spend
How can entrepreneurs compete in established markets without huge marketing and PR spend?
If your product is good then your customers will love it, take their feedback and augment their voice across social media. It is genuine and not expensive to create.
If you have a small budget there is still plenty you can do. Utilising social platforms and things like Google ads to generate awareness and interest. Content marketing is a key driver for B2B, by showing you know about your product and the solution it provides is a good way to position yourself as knowledgeable and people should then engage and hopefully this will lead to potential opps.
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Finding a market before you start
Our first question comes from a reader about how you find out if there’s a market for your business before you try to sell it.
Good question. Market research is vital. You need to understand if anyone else is already doing what you are proposing. Literally the first place to start is with Google. Then if there are people already doing it see if your proposition will be better. If it’s better you should go for it, but if it’s not it’s unlikely to fly.
There must be a reason behind your product (whatever it is), a reason to believe that someone needs it. Does it solve someone's problem. How many people have the problem you are trying to solve for example? Is there a category? Are others making a similar product. Are there many users in the market you are looking to enter? If you can share details of what your product is I can try and help with an answer. thanks
This is a really important question Kevan, and it's one that most entrepreneurs forget to ask. You should always test the market. The best way to is to talk to customers! Focus on solving a problem that they have vs trying to impose your solution on them. Don't talk to friends — they like you and will lie to you about how much they like your idea. You're better off talking to friends of friends if you want honest feedback. You might also try cheep market 'experiments,' like spending £10 on facebook ads targeted at your audience and then seeing if you get enough hits to justify going forward or if you need to tweak your idea or how you present it.
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The chat has started
Welcome to today’s live chat. For the next hour, our panel will be discussing how entrepreneurs can find a USP in a crowded market, successfully compete against established players, find investment, and market their offering to customers.
Please do put your questions and comments for our panel in the comment space below.
Some background reading to kick off our debate this afternoon
Featuring Will Butler-Adams, founder of Brompton Bicycles, who will be offering his advice on our expert panel this afternoon. Join us at 1pm.
How to join in the discussion
Make sure you are a registered user of the Guardian (if not, it’s quick to register) and join us in the comments section below on Thursday, 26 April, from 1-2pm (BST).
How to submit a question
You can post questions in the comments section below during the chat. Or you can send questions in advance by emailing emma.sheppard.casual@theguardian.com (please include Finding my USP in the subject line) or by tweeting us at @guardian_B2B with your question (using #FindingmyUSP). You can also post questions in the comments section at anytime before the chat, or in the comments sections of Facebook and LinkedIn. The panel will take a look when it begins.
What we'll be discussing
Entrepreneurs launching new businesses will often face direct competition from the market. It’s rare that products or services are wholly unique or start a movement all on their own. Competition is not always a bad thing – the fact that a profitable market already exists is often seen as an opportunity by investors, and customers are more likely to be aware your product or service exists.
But finding a unique selling point (USP) in a crowded market can be tricky. Making sure people know about it can be even trickier. How do you make best use of what you have to offer? How do you compete with bigger companies that know your market inside out?
Many British businesses are making waves, at home and abroad. In this webchat, we will discuss how you can make the most of your strengths in a crowded market, what challenges you will need to overcome, and the help you should seek along the way.
Questions we’ll be looking to cover in this webchat include:
- What does it take for an entrepreneur to be successful in a crowded market?
- What makes a good USP?
- What’s the best way to compete in a market with established players?
- Can your business succeed if it doesn’t have a USP?
- How should your marketing or branding strategy differ when faced with a crowded market?
- What do investors look for when it comes to backing a new business with a lot of competition?
Our panel
Will Butler-Adams, CEO, Brompton Bicycle
Suzie Walker, founder, Primal Pantry
Luke Lang, co-founder, Crowdcube
Nila Holden, boutique baker and food business coach
Rachel Clacher, founder, Moneypenny
Simon Leonard, co-founder, grüum
Ben Spigel, assistant professor, University of Edinburgh Business School
Gemma Butler, associate director of marketing, the Chartered Institute of Marketing
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Customer is King.
Your customer will only love you if you and your staff love you.
Be honest, the world isn't perfect, it's real.