We have many choices when it comes to architecting our own startups, but choosing whether to stand out – or fit in – really isn’t one of them. Seth also states that “fitting in is failing”. The truth is that differentiation is essential for survival – let alone growth. Yet, for many startups, especially in the B2B space, it can also prove to be one of the most challenging and elusive pursuits.

How do you soar above a sea of sameness? The answer lies in authentic and meaningful differentiation. This is how you earn your place in the market and the chance to pitch your business. Your brand is the vehicle you use to communicate this competitive advantage to the outside world. Without it, you might still be refreshingly different – but no one would ever know. So, let’s take a hard look at why differentiation matters, why it’s so tricky, and how to get it right.

Why is differentiation so vital?

In branding terms, it’s useful to swap the word differentiation for ‘unique value’. This is what makes your business irresistible to your target clients. And the single most important job of your brand is to communicate this unique value in the clearest and most compelling way possible. It’s all about becoming known for something you do that can’t be found elsewhere. It’s how you solve your client’s problems in a way that no one else does.

It sounds pretty straightforward. Almost. But, in reality, effective differentiation is one of the hardest things for most startups to accomplish. Particularly if you’re in a service-based industry. Particularly if you operate in highly saturated markets. And, especially if you’re in B2B.

For B2B startups, nailing your differentiation can feel like solving the Krypton Factor. But why?

• Because there’s so much noise
• Because our differences are often intangible
• Because we feel like we need to play it safe
• Because, possibly, we don’t understand our true value
• And often, because it can be almost impossible to identify what it is that makes us different in the first place

And then there’s the inner conflict! When we’re new kids on the block, we’re likely to feel an inherent tension between the need to stand out and the desire to fit in. Why? It’s simply human nature. And as humans, there’s safety in conformity. We’re designed to do what it takes to gain acceptance from our tribe. As startups, our first instinct is to look right at home amongst our larger, more established competitors. But we need to do the exact opposite. We need to make a splash. Because success comes to those who dare to be different.

As is true of many of the hurdles along the entrepreneur’s journey – we need to get comfortable with being uncomfortable. We want to stick out like a sore thumb – an opposing force when everyone else is mindlessly moving in the same direction. We actually want to BE the sore thumbs! Let’s explore why and how…

The benefits of differentiated branding

The benefits of differentiation aren’t isolated. They build on each other to create a powerful and perfectly aligned domino effect:

1. First of all, differentiation gets you noticed. Without visibility, you’re not even in the race. Standing out is the first step to being noticed by your potential clients. (This is where your visual brand design and headline messaging come in.)
2. Once you’re on their radar, you can communicate a deeper sense of differentiation, aka your unique value. This gives your prospects a clear reason to choose your business over your competitors. (Sum this up in your unique value proposition and core messaging.)
3. This confident clarity enables you to build trust. You know who you are and why you're valuable, and you have an easy conviction that forges deeper connections and inspires people to trust you. (How? Be consistent in your comms across the board, and make sure you and your team learn your pitch inside out.)
4. All of which enables you to charge premium prices. Jeffrey Gitomer said it best: “Differentiate with value or die with price.” When you offer something different or deliver a service in a way no one else does, you secure a license to charge a premium. Whereas, if you’re indistinguishable from any other supplier, your potential clients will have no choice but to compare you on price. There’s only one way to win that game – and it’s a downward spiral!
5. Finally, differentiation creates recognition. When your brand stands out, communicates its unique value, and builds trust, it earns a space in your audience’s mind. To the point that when they think of your industry, they think of you. Which means you’ve made it!  (You can get there by showing up consistently, over and over, time after time. No matter what.)

How to identify your unique value

Of course, it’s impossible to effectively differentiate your brand without first understanding what makes your business unique. And there’s a further complexity here: your unique value must be both meaningful to your clients and authentic to who you are as a business and as founders. For example, there’s no point in raising a flag for sustainability if you and your fellow founders are avid petrolheads with high-powered sports cars. Your differentiation must solve a dominant problem for your clients while staying true to your core values.

To help you find it, let’s try on a few different hats:

1. The Research Scientist: Get really curious about your own business and examine how you do things. Analyse your expertise, your processes and your approach. What do you do better, faster, or differently than anyone else?
2. The Journalist: Talk to your clients. Conduct interviews and ask questions to uncover what they value most about your services. This is almost guaranteed to reveal some hidden gems – things you do naturally that you had no idea were so important to them.
3. The Therapist: Get intimate with your client’s problems. Understand their challenges on a deeper level. Which do you solve for them? How can you make your solutions go further than any of your competitors?
4. The Detective: Investigate the market. Analyse your competition. Look at what’s already out there and what everyone else is doing, then find the gaps. Where do your competitors fall short? What are they missing altogether?
5. The Rebel: Challenge convention. Question all those tired industry norms and practices everyone follows without thinking. How can you strategically break the rules to create better solutions or improve your clients’ experience?

Once you’ve identified your unique value, it’s time to wrap it into a powerful UVP (unique value proposition). Think of this as your pitch in a nutshell. Ideally, it will be succinct, compelling and oh so memorable. Clearly articulate why your prospects should choose your business over anyone else’s. Leave no doubt about which territory you own in the marketplace.

Wrapping it all up

It doesn’t work to simply state that you’re different – it’s about living, breathing and demonstrating it at every touchpoint. Here’s how to make that happen:

Visual identity

Ensure your differentiation is beautifully reflected in your brand design. From your logo and colours to fonts and imagery, every styling element should subliminally reassure your audience that they can believe in your claims. It should feel like a natural fit for who you are, how you work, and what makes you special.

Core messaging

Headline your Unique Value Proposition (UVP) consistently across all platforms, from your website to LinkedIn posts. Support this with clear, impactful messaging and back it up with evidence – case studies, awards, testimonials. Every piece should fit seamlessly together.

Customer experience

Ensure your whole team is on board. Deliver your services in a way that consistently reinforces your unique value. Treat this as the golden thread that runs through everything you say and do – weaving your unique edge cohesively into every aspect of your business.

DARE to differentiate

So we’ve learned that in business, differentiation is everything. It can take a brand from just another name buried in a list – to THE name on everyone’s lips. But we’ve also learned that simply being different isn’t enough – it needs to be authentic to us and make a meaningful difference for our clients.

Here’s the next lesson… it’s not for the faint-hearted. Differentiation is about being brave enough to carve a new path. Finding new ways of doing things. Better ways. It’s for the courageous. The trailblazers. The mavericks. And if not those, then the really quite smart.

It’s also the very first part of Firestarter’s DARE formula for creating impactful brands. Yes, there’s 3 more steps! Authenticity, Resonance, and Expression at every touchpoint.

But, for today, here’s your challenge: What’s the one thing your competitors wouldn’t dare to say or do? Start there. Because the brands that dare to challenge, to disrupt, and to be unapologetically themselves are the ones that go on to thrive. And you have the power – and the smarts – to make sure your startup is one of them!

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