Why Every Business Needs a Real Differentiator

Welcome back to the Mid Market Insider!

Today, we’re discussing the importance of having a true differentiator in your business. Hint: It can’t just be “better quality or service.”

It’s the difference between getting lost in the crowd and commanding a high valuation when looking to sell your business.

Before we dive in…👇

What Makes Your Business Different?

It’s a simple question, yes… but it’s easily overlooked.

Every business should be able to explain what makes it different.

If not, it’s just another commodity.

In a crowded market, customers are drowning in sameness.

They don’t need another option… they need a reason to care about yours.

That starts with defining what makes you unique in a way that actually matters to your customers or clients.

And no, it can’t just be “higher quality” or “better service.”

Every company says that. Those aren’t differentiators; they’re expectations.

Real differentiation comes from the things your competitors can’t easily copy.

It might be:

• Your process: a proprietary way of delivering value

• Your model: how you price, scale, or engage differently

• Your speed: how quickly you deliver or make decisions

• Your focus: the specific customer you serve better than anyone else

• Your offer: a unique bundle of goods and/or services

These are the factors that make your business more than a set of products or services.

In diligence, we see it all the time. Two companies in the same industry, similar margins, same headcount… yet one commands a higher multiple. Why? Because it’s positioned as distinctly different than the rest.

The best businesses don’t try to win by shouting louder. They win by being the one customers can’t replace.

Ask yourself:

If your business disappeared tomorrow, what gap would it leave behind?

If the answer is “not much,” that’s your signal to dig deeper.

When you can clearly articulate your difference, everything else gets easier… marketing, hiring, pricing, retention, and even negotiating with buyers.

Because when a business has a clear reason to exist, people stop comparing it to others. It stands on its own.

Stop blending in. Define your difference. Own it completely.

That’s how you move from being another option to becoming the obvious choice.

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

📅 Next Week:

Next week, I’ll be sharing a story about a company we bought that looked solid on paper… until reality set in. I’ll walk through how we turned it around and how the changes we made led to a 5x return without selling the business.

Keep building,
Nick