Positioning Over Capital: A Back To The Basics Idea for Startups in a Funding Drought

I just returned from a whirlwind trip, speaking at Creative Destruction Lab in Vancouver, and the Banff Venture Forum in Banff.?

My topic was building brands that drive?revenue today, and sustainable, scalable growth into the future. The talks landed extremely well, particularly with the investors in the audience.?

Now here's the jolt of humility. I don't think they loved the keynotes because I'm a brilliant speaker. They loved them because the subject matter was well-positioned.?

Positioning is the foundation of effective communication. Not to mention effective product design, and effective company leadership.?

In a nutshell, it enables you to stake a claim of the most valuable real estate in the world - a piece of the consumer's mind. Position your message / product / company effectively, and your competitors will disappear into the background.?

My talks were positioned to deliver an antidote to the current anxiety around startup funding. For those of you not in the?space, Asian startup funding is at a 10 year low, European funding is at a 4 year low, North American funding is stagnant, and there doesn't appear to be good news on the horizon.?

The solution I offered in my talks? Stop trying to grow your company on raised capital. Instead, grow it the old fashioned way. By selling stuff. The message resonated.?

Positioning 101

Positioning is more than just a clever tagline; it's about defining your product’s unique value and making sure it stands out clearly to the right people. Here’s a rundown of the steps you need to build a strong positioning foundation.

Define Your Product?

Start by defining exactly what your product does and why it’s different. Think of it like this: if you had only a sentence or two to convince someone, what would you say? For example, instead of just “project management software,” go with “a tool that boosts team accountability with real-time workflow insights.”

Identify the Competition??

To stand out, you first need to understand the competition. It’s not only about identifying direct competitors; think about all the alternatives your customers might use. Recognizing their strengths and weaknesses helps you pinpoint where you can shine.

Highlight What Makes You Unique

It isn't enough to understand the competition. You need to know what truly sets you apart from them. Don’t just list features. Highlight the most valuable, unique differentiators that solve your customers’ pain points.

Find Your True Fans??

Positioning only works when you know who needs you most. Dig into your ideal customer’s pain points and how your product uniquely addresses them. Get specific and get niche - your message should resonate deeply with this core audience.

Define Your Market Category

Framing your product within a clear market category (e.g. collaboration software vs. project management tools) helps customers quickly understand what you offer, setting the right expectations.

Share the Proof

Once your position is clear, demonstrate why people should believe it. Back up your claims with testimonials, data, or case studies to build trust and credibility.

Craft Your Positioning Statement??

Now, try combining everything into a powerful positioning statement. The template:?

“For [target customer] who is frustrated with [alternatives], our [product] is a [market category] that provides [unique benefit]. Unlike [competitors], it offers [unique feature].”

I emphasize the word try. Often, the positioning statement becomes a word salad. Better that you have a longer positioning broken into paragraphs, rather than a short sentence that leaves people scratching their heads.?

Test and Refine??

Positioning isn’t set in stone. Test your statement with real customers, gather feedback, and refine it. And remember, positioning isn't done in a vacuum: your competitors are trying to unseat you with their own positioning, trends are making your positioning more / less relevant, and consumer priorities are constantly shifting.?