What are the most effective ways to show investors you understand your competitors?

Outlining and communicating your competitors (or comparables in other markets) is very helpful for you as the CEO to understand your positioning in the market, and your unique value proposition. The better you can convey that to an investor, the more likely you will land a 2nd meeting. Be sure to listen to the questions they have and feedback given. If multiple investors push back on your assumptions with similar feedback/concerns, you should take that info and re-evaluate.

Market and brand positioning in the space should reflect insights as to competitor strengths and vulnerabilities. In our world, we know that our strategic experience, access to top talent far exceeds the capabilities of our competitors, some of whom "asset strip" and merely do a deal to flip it. We take the long view, always.

It's not so much about how you see yourselves but about how those closest to you perceive you, Obviously your clients' input is critical but also influencers like consultants. Simply ask with the purpose to understand. Both will be flattered by your sincerity and you will build a tremendous bond with those from whom you seek insights. Been there, done that.

You must go far beyond that. ALWAYS make a steel man argument for your competitor’s value proposition. A quick web crawl doesn’t cut it - you have to, in a round about way, allow the customer to eventually realize the competition isn’t quite the right fit.

In my experience the most important point to recognize here is that your niche needs to integrate with platforms your prospects are already using. These platforms may be perceived as your competitor but in your niche, they have a weak offer. Integration reduces the cost of change and is an easier sell for the prospect to keep using their platform, for other reasons, with your enhancement. This makes your offer easier to scale which is appealing to investors.

In my experience, the unique selling proposition (USP) should be crystal clear yet simple enough for the layman to understand. Go ask around random strangers to get a feel of this; observe their facial reactions as you tell them your USP. People can mask their understanding verbally but take note of facial cues. Some examples of USPs include catering to a specific target market, lowest cost across industry, highest quality product/service across industry, etc. When it comes to SWOT usage, it's a reality check tool to see where your business is positioned relative to your competitors across the board. Strengths/Weaknesses represent that of the present whereas Opportunities/Threats represent those that may be gold mines/looming threats.

Craft a compelling narrative highlighting not only the uniqueness of your offerings but also how these distinctions directly benefit your target audience in solving their pain points or fulfilling unmet needs. Showcase quantifiable data, market research insights, and customer testimonials that substantiate your competitive advantages, reinforcing your assertions with tangible evidence of customer satisfaction or market traction. Moreover, continually reassess and adapt your value proposition, leveraging feedback and market dynamics to sustain and evolve your competitive edge over time.

Good point. One should share consumer insights. That is helpful in general. If data is also pointing towards the insights it becomes meaningful

Competitive advantage can be very simple. What do you do better than others? What makes you trustable, likable and authentic? In wealth management it’s less about sales and more about creating a partnership with clients.

Highlighting market opportunity is important because: 1) It demonstrates a clear understanding of the market; 2) Shows how you differentiate from competitors; 3) Provides context for your business model. Highlighting your market opportunity is a valuable tool for investors, but it should be combined with a thorough understanding of your competitors and a clear competitive strategy to truly demonstrate your entrepreneurial acumen.

Understanding industry risks and identifying key risk metrics that can affect your business and your market position substantially is crucial to support your growth and development story to investors. Providing them with a concrete governance and organizational set up to manage risk effectively will help to avoid unpleasant surprises and loss of credibility. Risks change over time, and dedicating enough (professional) resources and (management) time to monitor potential adverse situations is not an expense but an investment.

Stand out for the *right* reasons and compare your business favourably, rather than denigrating others. Their business may be larger; yours is agile, adaptable, and flexible. Their business may be global; yours is local, personal and approachable. Do you have an inclusive culture, a WFH team or unique specialties? Does your business give back to the community or the planet? (If not yet, then start now!) All of the BostonTrading team are WFH, and have been since before 2016. We have people in several countries, cultures and religions, and 50% of the team are female. Our business has supported over 200 000 charitable causes through B1G1, as well as Compass Dogs, LifeLine, Salvation Army and the RSPCA. What are you doing to stand out?