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Business ArticlesWe hope that the Business Articles below are useful to our visitors.How To Write An Advertisement - Unique Selling Proposition Being Different v Being The Best Businesses that are like everyone else rarely survive; they generally end up in price wars and because they don't have anything different about them they aren’t in the forefront of the customers minds. Because of this they are left with only one weapon with which to compete - Price. This means that ultimately you must lose, as there is always someone out there who will eventually come up with a way of making what you do cheaper and customers who choose on price alone are rarely loyal. All successful businesses know that they don't have to be the best in what they do; they just have to be unique. Identifying, developing, and incorporating your Unique Selling Proposition (USP) into everything you do can be challenging, but the reward is worth the effort as it distinguishes you, and gives your business a competitive advantage over your competition that ultimately will be reflected in your profits. What is Unique Selling Proposition One of the biggest mistakes many UK businesses make is by not being unique; with the introduction of the Internet and computers there has been an explosion of choice for businesses and consumers alike. If you want to survive and to thrive then you must differentiate yourself in the eyes of your prospect. Your USP is the thing in marketing terms that differentiates you from all your competitors both local and industry-wide. It's is the thing that makes you stand out, such that people will want to choose to do business with rather than your competitors. Your USP gives you a distinct advantage and this will be reflected in your profits. In his 1960’s book Reality in Advertising, Rosser Reeves (Chairman of Ted Bates & Company). The book was translated into 28 languages and was where he introduced the concept Unique Selling Proposition: 1. Each advertisement must make a proposition to the customer: “buy this product, and you will get this specific benefit. 2. The proposition itself must be unique – something that competitors do not, or will not, offer. 3. The proposition must be strong enough to pull new customers to the product. Make Your Benefit Clear The more clearly you can define the benefit of your USP, the more often your target market will choose you over your competition. You must use your USP to dominate your target market so that when a potential customer considers buying a product in your industry, your name is the first that pops into their mind. The Proposition Must Be Unique Your USP must create a real and perceived advantage in your prospect's mind. For example, Dominos made a very bold guarantee that if they didn't deliver your pizza within 30 minutes of ordering, it would be free of charge. Dominos put their USP into action. The Proposition Must Be Strong How many businesses do you hear saying, 'The Best Selection in Town' or 'Service with a Smile.' I have to tell you that these phrases are worn-out, tired renditions of a 'me too' business. Be specific - when Domino's stated that your pizza would be, (1) fresh, (2) hot, and (3) delivered within 30 minutes, it was specific and measurable. 'Buy it today and install it tonight,' that's specific and measurable. Good Examples of a clear USP Head & Shoulders - You get rid of dandruff Olay - You get younger looking skin Loreal - Because your worth it Red Bull - You get stimulation of body and mind Ronseal - You get exactly what it says on the tin An early classic was Dominos Pizza - You get fresh, hot pizza delivered to your door in 30 minutes or less – or it’s free. In the examples, Head & Shoulders isn’t the only product on the market that will get rid of dandruff, neither is Domino's the only pizza delivery chain with a similar thirty-minute guarantee. In both instances, the specific product may be viewed to be a market leader due to its innovation of the original USP. This may nolonger be unique in the public eye, what was originally a USP has become merely a perception of superior quality, something quite different. With the Ronseal example, "[doing] exactly what it says on the tin" could be argued that it isn’t a USP at all, merely a clever advertising slogan implying reliability or honesty; most all products do what they imply they will on their packaging, yet it works. How to Identify and Develop Your USP You shouldn't rush or hurry the decision of your USP, as you may spend thousands of pounds on advertising and promoting your USP. Once you've made your impression if you then decide to change it you may begin to confuse your prospect and it will cost you even more money to re-implement a completely different USP. If your USP is a promise or guarantee you must make sure that you can fulfill your USP promise. Domino's had a very bold USP. To get a pizza to anyone's house within 30 minutes was sometimes a difficult feat to consistently accomplish. But the rewards were fantastic. How do you pick a USP? One way, is to identify what needs are currently being unfulfilled within either your industry or your local market. These are called 'performance gaps.' Many businesses that base their USP on industry performance gaps are successful. Here are some examples in different SME based industries: Car Repair - Performance Gap (problem) = Car garages have a reputation of being dishonest. - Potential USP (solution) = 'If It Isn’t Broke, We Won't Fix It!' Dentist - Performance Gap (problem) = No one likes to go to the dentist because its such a painful experience. - Potential USP (solution) = 'Sedation Dentistry, The Safe, Pain Free Way to Healthy Teeth' Estate Agency - Performance Gap (problem) = People are wary of letting estate agents sell their homes because they don't believe they will aggressively try to sell them fast enough. - Potential USP (solution) = 'Our 13 Point Power Marketing Plan Gets Your House Sold in 30 Days or Less' You can see how a performance gap can lead to a powerful USP. You can also have local performance gaps that will give you a great USP as well. For instance, if you are an electronics outlet and you have more inventory than anyone else in town you might your USP could be, 'We Have 10 Times the Selection than Any Store In Town. Go Visit the Rest, Then Come Shop at the Best.' Your USP Doesn't Have to be Unique Although a USP is a statement of your uniqueness it doesn't always have to be something that is only unique to you...if you market it first! For instance Heli-Beds proclaim, if you order by lunchtime, we will deliver by bedtime'. Most other competitors can do that too, but because they were the first to proclaim it, it is theirs exclusively. This is sometimes called 'preemptive marketing.' You can preempt your competitors if you take a strong benefit, whether or not its unique, and put your stamp on it first. All others who come after you will just be strengthening an advantage that you have already placed in the minds of your prospects. Live Up To Your USP Be bold when developing your USP but be careful to ensure that you can live up to your USP. Your USP should have promises, guarantees, policies and procedures, employee evaluations and other reinforcing processes to make each USP come alive. Having a strong USP can make your business super successful; on the other hand, having a USP that you can't live up to is suicide. I'm sure that Domino's had to eat the cost of a lot of pizzas when they didn't arrive within 30 minutes, but they developed a system that allowed them to deliver on their promise consistently. Integrate Your USP into Everything You Do Once you have put some careful thought to your USP and have developed it, you need to integrate it into everything you do. Your USP should be found somewhere in your headlines, body copy of ads, direct-mail, emails, name cards, websites, signboards, and yellow pages. You should repeat clearly and consistently in every one of your marketing communications. You should include it in your sales presentation, on the walls of your business and even on your business card. You can't over do or wear out your USP, especially if it's powerful. Article supplied by http://www.mybusinessadvice.co.uk Posted by Ian Donaldson from My Business Advice Ltd 10/01/2008 - MAKE THE MOST OF YOUR INCOME AS A CONTRACTOR The aim of the HMRC is to remove the tax advantages from contractors who are selling their services via partnerships, under umbrella or managed service companies. It is viewed that contractors are, in effect, full time employees and should be taxed accordingly. The legislation that governs this often fraught relationship is IR35. IR35, is a ruling that states if you can be considered 'employed' by the company you are contracting your services to, then you are liable to pay tax and NI contributions as if you were directly employed by that company. Contractors looking to maximize their income would be well advised to be aware of IR35 before signing any contracts. Avoiding IR35 can make a huge difference to a contractor's income. In essence, contractors falling outside IR35 have two basic choices. The first choice is the Umbrella Company that acts as your employer for tax purposes when undertaking a contract with either a client or employment agency. Umbrella companies raise invoices on your behalf and pay you once they have received the funds. What you will receive from an umbrella company is a payslip detailing your tax, NI contributions, your umbrella company's fees and any expenses claimed. The second choice is setting up a limited company, where you, the contractor, become a shareholder and director in the company. The limited company offers a greater scope for reducing tax liability of contractors than does an umbrella company. One of the reasons is that, as a director, you can choose to pay yourself a mix of both wages and dividends, thereby attracting less national insurance and tax liability. Taking advice from accountants experienced in dealing with contractors should be your first step in ensuring you minimize your tax bill and maximize your earnings. At the very least, you will get to understand the issues as it applies to your specific situation. source: www.stmarysaccounting.com 21/12/2007 - Income Shifting - What happens when the Inland Revenue loses a court case? They simply change the legislation. This is exactly what is happening after the Arctic Systems case (The Jones v Garnett case), and the goverment are changing the laws on Income Shifting in April 2008 These changes will have a big impact on small businesses, especially husband and wife businesses where the wife supports the husband and aids in the day to day running of the company. Predictions say, Small Business will have to increase profit margins by a figure of up to 10% just to maintain their current incomes. more...... 22/12/2007 - Top 10 social networking websites - PODLINE has now published their list of the top 10 social networking websites of 2007 more....
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