By Fernando Berrocal

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If you work for (or own) a business organization in 2023–regardless of size or industry–you may have heard that businesses are currently in the so-called "specialization age". That makes it an excellent moment to be a startup entrepreneur. However, some of these small business entrepreneurs still mistakenly believe they should be reaching the broadest market possible, even in the initial stages of their organization. These entrepreneurs believe that business specialization and concentrating on smaller markets hinders their ability to reach a wider market– and are thus too hazardous in any business scenario. 

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These small business entrepreneurs are constantly asking themselves many questions.  One of them is the following: Why restrict one's small firm in any manner when having more clients is always a better idea? The fact is that–in order to set your business apart from your direct competitors–you must have a distinctive characteristic, or area of specialization. Our business experience has shown us that having a distinctive reputation and establishing your business strategy around it will, in the long term, be essential elements in a winning recipe. It will also offer you, your small business team, and your enterprise itself a competitive edge over your market peers .

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Major advertising authorities have postulated that their organization's reputation for innovative research was a major factor in its success. For instance, advertising guru David Ogilvy launched an advertising firm that performed what other agencies do: create and place advertisements. Many of these business rivals offered the same services for far less than David Ogilvy did. However, Ogilvy distinguished itself from its competitors by taking a different business perspective, developing a distinctive character, and using this distinction to its main advantage. 

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By not just accepting, but embracing, the business risk of this type of firm specialization, David Ogilvy gave his clients a significantly greater value package overall.  That's how a better form of targeted advertising was made possible; through information from creative research, which increased the client value overall (and both parties benefitted).

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If you find yourself in this scenario professionally, you must understand that becoming recognized for anything entails going beyond the "what I do" description of your business to "who I am”–a distinctive attribute that sets you apart. For instance, everyone is aware that McDonald's sells hamburgers, french fries, and sodas. Disney World is a well-known entertainment park, and Starbucks offers coffee, tea, and baked goods.

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This is mostly what these well-known businesses do.  However, they are famous across the world for something completely different. McDonald's marketing angle is that they are reasonably priced, quick, and accessible.  Their restaurants are comfortable and low key.  Disneyland and Disneyworld earned the "happiest location on earth" slogan because everyone knows Disneyworld, and most people desire to go there and enjoy the merriment.  Starbucks is in essence a social place that you can find in virtually any city. Who they are is considerably more significant than what they have accomplished across the years of operations.

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Being recognized in your industry for anything indicates that you are an expert in the field you operate in rather than a business generalist. You demand greater respect from everyone (competitors, customers, and the general public) when you are a specialist because others look to you for advice and wait for your take on different things regarding your industry. The corporate identity and how consumers perceive it in general shape business market distinction and a competitive marketplace edge. No matter what your organization does, knowing who you are in a market crowded with competitors (seeking to get and keep market share) is essential. Since that's who you are, your consumer must be able to see how your business's product or service offers a distinct advantage and better value than its rivals.

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The idea of being recognized for anything is very helpful when utilized to develop your business and marketing plan. Based on the characteristics of the organization, the specialist identifies a market to target, and this market has realistic bounds. On the other hand, the general practitioner lacks any useful business tools for focusing within his broad confines. Addressing an infinite market size may seem desirable, but it is disadvantageous for two main reasons: First, compared to specialists, general practitioners face more competition (from direct and indirect competitors). Second, general practitioners must spend more on different types of marketing since there is more competition and a broader audience to attract and that's not easy to accomplish.

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Ensuring that everyone is familiar with your business identity is important. Of course, the outside world is included, but your staff's internal environment is much more crucial. Every employee we hired had to understand who we truly were, and we created a culture based on our fundamental corporate principles. Everyone, from the leaders of the organization to the employees with the fewest qualifications, must buy-in. The rope must be pulled enthusiastically by the entire business. Only by establishing a culture that initially supports the corporate identity within the organization can you do this.

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Customers avoid situations that are unclear in their minds. People have a limited threshold for any type of business uncertainty, so if potential clients are unsure of your organization's worth, they won't do business with you. We built the framework for our marketing message by developing a distinct identity based on the customer value we offered, one that potential clients could easily comprehend.

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You must be able to quickly gain a sizable market share by focusing our value offer on the single most crucial demand of our customers and qualified prospects and adopting a consistent marketing approach around this value. Since you might have started so early and well ahead of the competition, they still haven't caught up. The alleged risk associated with this business tactic is baseless. You position your business as the obvious choice for a consumer seeking a solution when you are renowned for something rather than for what you do.

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Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.