In the latest episode of the Tough Love for Business podcast, Jackie Zach and Mike McKay delve into the concept of gaining a competitive edge as a business owner or executive. They emphasize that having a competitive edge doesn’t solely depend on skill but also on other factors like experience, belief, and grit. They highlight the importance of making a conscious decision to develop this edge, whether in sales, customer service, or marketing, and stress that it requires a commitment to professional-level excellence. Examples like Warren Buffett and LeBron James illustrate how top performers decide on their path to greatness and build the necessary support systems around them.

The conversation also underscores the significance of knowing your target audience to maintain a competitive edge. Specialization and understanding who you serve are crucial, as attempting to excel in multiple areas dilutes effectiveness. Jackie and Mike point out that businesses should focus on their strengths and create exceptional processes tailored to their niche. They conclude that achieving a competitive edge is a deliberate process involving targeted marketing, dedicated skill-building, and leveraging external support, all of which lead to higher value and better market positioning.

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Check out this episode!

Podcast Transcript

Jackie Zach: Welcome to the Tough Love for Business podcast. I am here with Mike McKay. My name is Jackie Zach. And today, as promised last time, our topic is all about being an executive or owner plus, or really having that competitive edge of skill.

Mike McKay: Yes, it doesn’t even need to be skill. It’s just competitive edge. What’s the thing that causes you to stand out in your environment and be able to win just a little bit easier? Even if it’s winning by a nose like the Kentucky Derby.

Jackie: Right. Exactly. So, think about what, as a business owner or as an executive, is your competitive edge.

Mike: Right, it’s gonna come from skill set, belief, experience, grit—what you call grit, which is the ability to stick with something for a period of time when other people think you might be insane. And it’s going to come from a decision and a commitment to becoming a professional-level business that has the competitive edge.

Jackie: Right. So, you know, I’m sure people are asking themselves, “What is our competitive edge in our business?” “As a leader, what’s my competitive edge?” Where would you start if the answer is, “I have no idea what our competitive edge is”?

Mike: Well, if you don’t know what your competitive edge is, you probably don’t have one, right? So that makes you part of the crowd. You start by making the decision that you want to have a competitive edge in this spot. If you want a competitive edge in selling, create an amazing sales process. If you want it in customer service, create an amazing customer onboarding and care process. If it’s in marketing, create an amazing marketing program. There’s a fallacy in the world that people are looking for someone to tell them what to do. The people who achieve amazing results don’t wait for that. Warren Buffett decided to be great at determining the value of companies and then invested in those with high intrinsic value, resulting in Berkshire Hathaway having $189 billion in cash. Nobody told him to do that; he just decided. LeBron James wants to be historically the best basketball player, and he decided to pursue that.

If you’re thinking about competitive edge and hoping we tell you what it is, you’ll never get it. It’s a decision you have to make, and getting your competitive edge will take skills and people around you to support it. We have our own coaches who coach us—Bruce Wilson, David Hurdling, and Mike Samuels. Each coach focuses on different areas of improvement. LeBron James has personal trainers and physiotherapists and spends millions annually to stay at peak performance. People in business who think they can succeed on their own are like a kid who wants to join the PBA as a bowler without any help. They believe they can do it, even if it takes them 100 years.

Jackie: Right. And part of this, especially for general contractors, is understanding what makes you better than everyone else. What is your competitive edge? If you do something that no one else does, that’s your competitive edge.

Mike: Right. But let’s back that question up. Who do you need to be better for? We’ve talked about the minimum viable audience. If you’re a general contractor specializing in audio-visual setups for churches and public buildings, but you market to cafeterias and office buildings, you’ll lose. You can never have a competitive edge by specializing in multiple areas. You need to know who you are for—target marketing.

Jackie: It all depends on each other, right? If you’ve decided who you are for, your marketing, business, messaging, and expertise should be geared toward that.

Mike: Exactly. If you specialize in repurposing downtown buildings, own it. Take responsibility. How many projects can you handle at a time? If you can do two buildings, you might only need to market to 100 building owners. If you think any business is good, you’ll be average at all of them and compete on price, which is never a good decision. Walmart doesn’t compete on price; they compete on a logistics system that’s the best in the world. Amazon does the same.

Jackie: Which is their competitive edge.

Mike: Logistics. Amazon stores products for other sellers, optimizing their logistics. If you’re a general contractor and don’t know what you specialize in, it’s hard to get a competitive edge.

Jackie: Right. And people will pay more for your competitive edge.

Mike: Exactly. If you’re great at building churches, hospitals, or any specialization, you’ll get paid more. Stick with your knitting. Know exactly who you’re for to figure out the most valuable plus for your business.

Jackie: Right. Excellent. The first piece is deciding what you want your competitive edge to be. Join us next time when we talk about Networking 2.0. Until then, have a great day.