And just how much information do you need to know about your competition? You need to be conversationally proficient. Meaning, that you can answer any questions about your core competitors at such a level of expertise that your prospects will be thinking, "This person understands competitive options, and I am dealing with a professional."

Remember: It is very important to speak respectfully about your core competitors. You can talk about them in such a way to educate a prospect and tell them more than anyone else ever has. You can bring their level of competency about the competitive options even higher just by sharing your knowledge. You need to be prepared and do enough analysis to be knowledgeable, of course, but not too much to paralyze yourself. The most important thing is to be an expert in discussing your advisory practice, your solutions and yourself.

Practice Differentiation

To begin, ask yourself these two basic questions:

How is your independent financial planning firm different from a local bank trust department?

How is your wealth management firm different from a private money management firm in your community?

Of course, for you, the most important question is how YOU differ from whomever your prospect is asking about.

Always keep in mind that if your prospect is investing with someone else by using other financial planning services, or other accounting or legal services, these firms are competitors. Either direct, indirect, remote or just beginning to fly onto your radar screen, they can encroach upon your business. Be prepared.

Competitive Differentiation Concepts

One great way to assess organizational or practice differentiation (which also applies to solution differentiation) is to consider the following concepts as you position your strategy:

The Concept of Uniqueness-As defined in a previous column on developing your UVP, uniqueness means exclusive or one of a kind. What characteristics make you truly unique? Discovering your uniqueness is a high-five experience. You may have to search long and hard, but the final results may set you in a direction you might not have considered. You are unique. The question is whether you understand your uniqueness and can speak concisely about it.

The Concept of Competitive Advantages-What do both you and your competitor do, but you do much better? Is this an advantage that would matter to your prospect? If, after studying your competitors, you can say, yes, you are better, then it becomes strategic. It becomes a competitive advantage that may need to be emphasized in the course of your presentation to prospects.