Important question: Where is your brand position in the market?

Have you ever stopped to ask yourself where your business fits in the market? For small businesses, this question is crucial. Understanding your position helps you focus your limited resources, target the right customers, and outsmart bigger competitors.

Let’s break it down step by step so your small business can thrive in today’s competitive landscape.

Step 1: Define your value proposition

Your value proposition is the foundation of your market position. It’s what makes your small business unique and valuable to your target customers. In Alex Hormozi’s book $100M Offers, he emphasises creating offers so good that people feel "stupid saying no."

Ask yourself:

• What problem does my business solve?

• How is my solution different or better than what competitors offer?

• Why would someone choose my SME over another?

For example, if you’re in the logistics industry, your small business might offer faster, more flexible delivery solutions tailored for local e-commerce businesses. Whatever it is, your value proposition should stand out and resonate with your specific audience.

Step 2: Identify your ideal customer

As a small business, you can’t afford to target everyone. The clearer you are about who you serve, the better you can position your business. Think of your ideal customer as the centrepiece of your strategy.

Consider:

• Who benefits most from my service?

• What’s their biggest pain point?

• What do they value the most — price, quality, speed, or something else?

For example, a small fitness studio might target busy professionals who want quick, high-quality personal training sessions. Knowing your customer’s needs is critical because it helps you focus your marketing and service efforts.

Step 3: Analyse your competition

To figure out where your small business sits in the market, you need to know who else is in the space. Competitive analysis doesn’t mean copying others — it means learning where they’re strong, where they’re weak, and how you can carve your own path.

Questions to explore:

• Who are my direct competitors?

• What do they do well? Where do they fall short?

• How can I differentiate myself?

For instance, if you run a boutique architecture firm, you might discover that larger competitors offer standardised designs. You could position your SME as the go-to for personalised, creative architectural solutions that cater to specific client visions.

Step 4: Evaluate your pricing strategy

Pricing isn’t just about covering costs; it’s a powerful signal of your market position. Are you competing on price, or are you charging a premium for added value?

For small businesses, pricing should reflect the value you provide. If your service is niche or offers exceptional quality, customers may be willing to pay more. Conversely, if you’re targeting cost-conscious customers, ensure your pricing structure communicates affordability without sacrificing value.

Step 5: Understand your leads and conversion rates

Your ability to attract and convert leads says a lot about your position in the market. In $100M Leads, Hormozi outlines how businesses with strong lead-generation systems can thrive even if other parts of the business are average.

Ask yourself:

• Where do my leads come from?

• What’s my conversion rate?

• Do I have systems in place to attract a steady stream of potential customers?

For small businesses, lead generation might involve leveraging local SEO, social media, or community partnerships. If you’re not getting enough high-quality leads, it’s time to refine your approach and make sure your business is visible to the right people.

Step 6: Reassess you brand position regularly

Markets change. Customer needs evolve. Competitors innovate. For small businesses, staying agile and regularly assessing your market position is essential to staying ahead.

Use feedback from customers, track trends in your industry, and keep an eye on what’s working (or not working) for competitors. The better you understand the landscape, the better you can refine your strategy.

Understanding where your brand position is in the market isn’t just a nice-to-have — it’s critical for growth and long-term success. By defining your value proposition, understanding your ideal customer, analysing competitors, and refining your pricing and lead generation, you can position your business to thrive.

So, where does your business sit in the market? And more importantly, where do you want it to go? If you’re feeling stuck or need clarity, Lobos can help you piece together your brand puzzle so you can move forward better informed and more confident.

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