Welcome back to the Mid Market Insider!

Today, I’m breaking down why differentiation can be one of the most powerful ways to increase your business’s value—and how creating a true competitive advantage can make buyers see your company as a much lower-risk investment.

I have a confession to make…

I’ve spent almost 20 years helping business owners buy, grow, and sell companies. And in that time, I’ve successfully acquired 10 companies.

But the truth is, many businesses I come across all look the same… And their owners all say the same things.

From a buyer’s perspective, this is a big problem.

Because the #1 thing they’re looking for, which greatly lowers their risk, is differentiation. Or, what Warren Buffett calls an “economic moat”.

In other words:

How are you different from your competitors, and how hard would it be for them to copy you?

And if your answers aren’t convincing enough, it typically means you’ll end up with a lower valuation… a worse deal structure… or even no deal at all.

That’s why I’ve recorded a video all about something I call “Strategy Engineering”. Which is the hidden key to standing out as different to buyers – and giving yourself more leverage when it comes time to negotiate.

You can watch the short video here.

Inside, I walk you through:

✅ The strange reason why most business owners struggle to find something different about their business – even when it’s staring them in the face…

✅ 3 powerful ways to prove your competitive advantage to buyers (instead of just claiming it)...

✅ Why saying “no” to offering a new service or creating a new product can one of the best things you can do for your business.

This is probably one of the most valuable videos I’ve made. If you’re thinking of exiting your business in the next 1-5 years, I hope you find it helpful.

That’s all for today’s newsletter! Thanks for reading!

In next week’s edition, I’ll break down why simply working fewer hours doesn’t necessarily mean your business can operate without you—and what buyers really look for when assessing owner dependency.

And how stepping into the right role can make your business more transferable, increase your buyer pool, and give you more leverage when it’s time to sell.

Keep building,
Nick