What's your advantage?

When an investor asks you "Why hasn’t someone already done this and what’s your advantage?" .... 👇

What they are really asking:

What makes you unique? They may also be asking: “Why is now the right time to launch your product/ service?” It is sometimes argued by investors that there are no new ideas, just new teams. In some cases, we agree but in others not, for example, when a startup is opening up a whole new market. However, understanding your “secret sauce” is critical to attracting investment and positioning yourself in your chosen market, so you need to think long and hard about answering these questions.

Where you should look for the answer:

Defining your secret sauce requires looking at all the work you have done on your business model, market, customers, competitors and product/service hypotheses. Your secret sauce:

● Is very difficult for others to copy

● Ties directly to your value proposition to customers

● Provides long-term advantage – increases over time

● Is based around resources or capabilities

First, look inside-out to assess your strengths, e.g. world-class talent on your team or a unique technology, and weaknesses, e.g. need for additional skills and resources. Then look outside-in and see where you can uniquely differentiate versus competitors and in providing the most value for customers by addressing their most important needs, pains and gains. The outside-in look is also where you can identify why now is a good time to launch your product/service.

There is no easy formula for defining your secret sauce, but it is critical to attract investment and ensure you focus on strengthening your long-term sources of advantage.

How to make your answer compelling:

Start from the customer point of view. Your secret sauce allows you to deliver superior customer value over time. Be clear about how the unique bundle of resources and capabilities you offer delivers this value. Distinguish between short and long term sources of advantage – the former can delay competitors, the latter will sustain your business over time. As you discuss your secret sauce with investors, be clear about the steps you are taking to focus on strengthening this over time.

If you need help with your pitch preparation, our team of mentors can get you investor ready. Learn more and book a FREE chat.