The Concept of Parity-In an increasingly commoditized world, we can try our best to distinguish ourselves, but sometimes things seem so similar that they look and feel to be a competitive "wash." If you can say, "I do it. My competitor does it. We both do about the same thing with the same amount of service," then consider listing something under parity. But remember Levitt's comment about everything being distinguishable. You need to pay attention to details because differentiation is in the eye of the beholder.

The Concept of Competitive Disadvantages-The opposite of competitive advantages, it represents what your competitors do better than you. This honest introspection helps because it forces you to go deeper into the analysis of your own uniqueness and competitive advantages.

The Concept of Competitive Uniqueness-This is something that your competitors have an exclusive on. Let's be honest. This is even tougher to compete against, especially if it's one of the key criteria by which your client evaluates you. Do your research.

How do you net it all out? You might try something like this: "We are proud that our team (or I ) has a unique approach to financial planning." Or, "We've done in-depth analysis of our expertise and solutions, and we truly believe we present many competitive advantages for your consideration."

Solution Differentiation

This concept raises eyebrows sometimes. "You mean I should know more about my competitor's solutions? "I don't know what they offer. How would I even find out?" advisors ask me. Maybe some of their solutions are liquidity, asset allocation, investment policy statement, trust services, structured products and investment management, or private equity, Perhaps they are many of the solutions you also offer. If your competition is other fee-based financial planners, maybe their solutions are unique approaches to taxes or structuring a customized plan, or life planning, or providing values-based solutions. These are the kinds of things you need to know about your competitors. And once you determine their solutions, you need to probe and uncover "why" they are unique and how yours are different.

Wouldn't you like to have some working knowledge of what and who you are competing against? Do your homework. You can attend industry conferences with your peers and exchange ideas and practical solutions without having to divulge any business model or strategic procedures you feel are confidential or proprietary. Many times, speakers at conferences and industry experts are happy to share what they know about the competitive environment. Research the competition through the internet; you'd be surprised the type of information you can glean. Read your industry magazines and industry research papers for trends, profiles and case studies of other successful advisors. Also, talk to your CPA and estate planning allies-they are usually a good source of competitive information because they are being called on by your competition, too.

Distinguishing On An Individual Level

What do you stand for? What are your values? If I called your top clients, could they list you or your team as advisors who provide Ritz-Carlton-type service? Would they be raving fans? Do they have you in their personal "hall of fame?" Isn't that your goal?

Most advisors, advisory teams or independent broker-dealers will develop broad-based core values. They are called mission statements, value statements or their beliefs or principles. I'll usually ask, "What are your core values?" And they will say, "We believe in taking care of the client first," or "We believe in customizing solutions for clients." Sometimes when I hear these things or see them posted in the office, I feel these words are meaningless. If they are just words on the wall with no action, then forgive me, they might as well be toilet paper.

Always remember, business is first a meeting of the hearts, then it becomes a meeting of the minds. If the most important thing you have to distinguish is YOU, and the most important way to distinguish yourself is by speaking from the heart and connecting with someone else relative to your standards, code of ethics and core values, it is imperative you have this stuff down pat.

If you really haven't thought in depth about your core values, you might want to begin by analyzing them. Are your values internally or externally focused? Are they company values or individual values? Are they possibly one and the same?