Ask most entrepreneurs what makes their business different and you get some version of “I’m more creative” or “my service is cheaper”. Neither holds up in a competitive market, says Allon Raiz, founder of business incubator Raizcorp.
Why “good” isn’t good enough
Creativity is subjective and being cheaper is not sustainable once a competitor decides to match your price. Entrepreneurs also tend to judge their own business’s uniqueness the way they judge their own children, generously. A more honest appraisal is what actually protects a business long term.
How to find real differentiators
Identify up to four factors that genuinely separate your business from competitors, then weave them into every part of how the business operates, not just marketing copy. Any advantage is temporary since competitors will copy or out-differentiate it eventually, which is why differentiation has to be an ongoing practice, not a one-time decision.
Frequently asked questions
Why isn’t “cheaper” a sustainable differentiator?
Because competitors can always match or undercut a price, and racing to the bottom on cost is not sustainable for most small businesses.
How many differentiators should a business focus on?
Around four genuine ones, focused deeply, rather than a long list of vague claims.
How can I honestly assess if my business is really different?
Ask what your clients actually perceive as different, and compare that against what your closest competitors genuinely offer.
Is differentiation a one-time exercise?
No. Any advantage is temporary, since competitors will eventually copy or match it, so differentiation needs continual attention.
Who is Allon Raiz?
Founder and CEO of Raizcorp, a South African business incubator, and a recognised voice on entrepreneurship globally.
Further reading: Why so few entrepreneurs?
Originally published in 2016. Updated September 2026.
