What’s Your Point of Difference?

What’s Your Point of Difference?
I have lived in my current home for around ten years now, and during this time I have watched with interest as shops and restaurants have come and gone along the local strip. In reality it is actually a small group of shops, although quite heavily utilised by the local community. Importantly, it’s not only the type of shop that opens but also the various locations within the strip that these businesses are positioned.

Of late, a new Indian restaurant opened in a shop previously occupied by a long standing Thai restaurant. Now, I wouldn’t profess to be an expert in the typical lifespan of a restaurant, however what intrigued me was on what basis this new restaurant thought it would be a success. Had they done their homework; had they done a SWAT analysis?

The reason for my question is that the local strip already has two well established Indian restaurants, one with a particularly good reputation. So how did this new entrant expect to survive, let alone succeed? Whilst I haven’t frequented the new Indian restaurant, it does seem quiet in comparison to other local eateries. Conversely, a new Japanese restaurant opened a couple of doors down and is consistently busy. In fact, looking along the strip in its entirety, we have eight real estate agents, three travel agents, four hair salons, and a multitude of coffee shops. How can they all make a living?

But what does this have to do with professional firms? Yes, I do appreciate that these types of businesses have different clientele to the other types of organizations that I have mentioned. However, as accountants, financial planners and lawyers, we are increasingly told to differentiate ourselves and the motto of ‘quicker’ or ‘better’ services just won’t cut it. Any marketing expert will tell you THAT point of difference is ineffective.

As the face of professional advisory firms change over time, we need to find new and alternate approaches to enable ourselves to stand out. Just as I proposed the question about the latest Indian restaurant, if your firm is relocating to somewhere new and is depending on the local community for new clientele, you will need a clear plan on how your proposed growth will be achieved.

I do appreciate that many firms obtain new clients through referrals and therefore depend less heavily on their location. That said, being part of the masses in terms of location for other firms is more of a hindrance than a help.

Just some food for thought!