1. Track Industry Trends

For startups, one of the best ways to define a USP is to monitor industry trends. Knowing what is happening in your industry helps you spot opportunities others may miss.

For example, certain trends in the fintech sector are seeing rapid growth. According to the FinTech Industry Report 2024 by StartUs Insights, trends like AI in finance and tokenised security are currently leading the way. AI in finance is growing at a rate of 71.21% annually, while tokenised security is growing at 28.27%.

If you were a fintech startup, you would use these trends to guide your USP, which would inform consumers and investors of your forward-thinking approach. As such, these key assets make them more attractive, helping them stand out. Consider where your industry is headed and use what is trending to form your USP. Capitalising on this will speak directly to what customers are looking for today.

2. Leverage Customer Feedback

New businesses can create effective USPs by understanding customers' thoughts about their products or services. Customer feedback via surveys and online reviews offers direct insights into things such as:

• What your audience values most.
• What they believe sets you apart.
• Where there could be room for improvement.

This feedback is especially valuable because it comes straight from people who use your product or service. Since 88% of shoppers use online reviews to influence their purchase decisions, these reviews provide vital insights into the reasons why people are purchasing your products versus your competitors.’

By paying close attention to reviews, you can find recurring themes highlighting your strengths. For example, if your customers consistently praise your product’s ease of use, this element could be a key part of your USP.

3. Fill in a Solution Gap

Startups should pinpoint gaps in the market to help them create their USP. By addressing unmet needs in your USP, you can stand out to potential investors looking for innovative solutions. For instance, suppose you are planning to seek Series B and C funding. You can benefit from creating a USP that delivers something others have yet to offer.

The State of Private Markets report by Carta sheds light on how startups in the middle stages of their life cycle have succeeded by doing just that. Although the number of Series B deals declined slightly in recent quarters, Series C deals saw a significant uptick that increased by 14% in Q2 2023. This trend suggests that investors are keen on supporting small entities that have demonstrated their ability to address specific market needs.

Focus on what is missing in the market and deliver a solution. Doing so will help you carve out a compelling and highly valuable USP. As a result, you will show a strong potential for growth, and investors will be eager to back your company.

4. Ask Yourself a Few Key Questions

When attempting to create your USP, sometimes the answers lie within the questions you must ask yourself. Reflecting on key aspects of your new venture helps you uncover what truly sets you apart from competitors. A few crucial questions to consider include:

• What do we do better than anyone else? Think about the strengths of your product, service or team. What can you confidently say you excel at?
• What problems are we solving for our customers? The more specific you can be in determining these problems, the more compelling your USP will be.
• Why should customers choose us over the competition? Is it your product’s quality, innovative approach, or your brand’s story? This question forces you to think critically about how you differentiate yourself from competitors.

5. Determine Your Startup’s Values

Your business’s values are the guiding principles that shape your company’s culture, decision-making and brand identity. When deciding your USP, consider how these values differentiate you from competitors and resonate with your target audience.

Start by reflecting on what your business stands for. Are you committed to customer-centricity, sustainability or community involvement? These core values must connect emotionally with your customers. While these points are not a USP, they can help you consider what makes your company unique. In certain cases, that differentiation can be the centrepiece of your USP.

Crafting a USP for Your New Business

When developing your USP, incorporating several strategies will help you. Yet, remember that a USP should be the core of what makes your startup special. By staying true to your strengths and values, you can create a distinct place in the market.