Get All Access for $5/mo

Want to Scale Your Business? Stop Worrying About Your Competition and Focus on These 3 Things Instead. Think about the three P's: positioning, pricing and people.

By Adam Bornstein

This story appears in the October 2021 issue of Entrepreneur. Subscribe »

Federico Gastaldi

Q: What are innovative ways to scale a business that most people don't discuss? — Diana, Chicago

The first rule of scaling a business is "Don't worry about the rules of scaling a business." If you're copying others, then you're always following their lead, which means you pick up breadcrumbs instead of getting the loaf. Instead, look for the leverage only you can create.

That requires an innovative strategy on three fronts: positioning, pricing, and people.

Let's start with positioning. Look at your three biggest competitors and make a list of the problems they solve and why they exist. Now add yourself to the list, but don't think about how you're better than them. Think instead about how you're different — because remember, you don't want to be competing.

Related: 7 Strategies for Starting and Scaling a 7-Figure Business From Home

Positioning yourself as different creates two unique opportunities that are important for scale. First, you control the narrative — which means you don't have to use the same marketing language as everyone else. You see a problem differently, create a new approach, help people solve problems they didn't know they had, and therefore define the problem and solution.

Because you're doing this, your earliest customers are likely to be your most passionate. They aren't window-­shopping and comparing you to everyone else. They are your customer because you struck a nerve. They'll give you more feedback, support your journey, spend more money with you, and — if you deliver on your value proposition — they'll spread the word to others just like them.

The next issue is pricing. It is often viewed as an art, but it is much more scientific than people believe. If you want to scale, your product should be informed by your pricing strategy (and not the other way around).

Before you even create your product or service, you should know what people will pay for it. This isn't solely about the total dollar amount, which is important. It's also a way to determine how you charge and people's willingness to pay. Think of it this way: Netflix didn't take down Blockbuster just because the company defined a new category (streaming and subscription). It was because Netflix's value proposition was radically different from Blockbuster's. Once that mattered to consumers, they were willing to pay a monthly fee for it.

To assess your price, run some tests. Identify your target market, pitch your product at a specific price, and ask about their willingness to pay. (You can do this in person, or with online surveys.) People's responses will give you clarity about your company's value and perceived worth.

Related: This Female Serial Entrepreneur Shares Her Best Tips for Scaling a Business and Achieving Success

The final aspect is people. In this case, we're talking about your team. Just like in sports, the best teams win championships.

If you want to scale faster, invest in expertise and strengthen your weaknesses. That can be costly; you may need to give up some equity or find a way to out-pay the competition. But if you do it right, and get the people who understand opportunities and efficiencies, you can potentially speed up your process by years.

When you start looking at different ways to scale as a competitive advantage, that's when you'll likely find your leverage. And if you execute well, growth should soon follow.

Adam Bornstein

Founder of Pen Name Consulting

Adam Bornstein is the founder of Pen Name Consulting, a marketing and branding agency; a New York Times best-selling author; and the creator of the two12 event.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Business News

You Can Now Apply to Renew Your U.S. Passport Online — But There's a Catch

The U.S. State Department officially launched the beta program this week.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.