By Todd Smart, with Susan E. Fisher

Ah, the entrepreneur’s dream: a bright, shining vision of the freedom to work and live as you wish. Many ambitious individuals cast aside their well-paying, secure day jobs and embrace the uncertainties of entrepreneurial life because of this alluring vision.

Unfortunately, that glowing dream can easily turn into a dark and stormy nightmare. Disillusionment and burn-out can quickly vanquish excitement and hope.

To their chagrin, far too many would-be entrepreneurs quickly discover that they end up with less freedom than they might have enjoyed in the corporate ranks. When they strike out on their own, business people typically shoulder the weighty burdens of greater liability, longer working hours, more responsibilities and less cash lining their pockets.

How does the rare entrepreneur succeed and manage to enjoy the sweet fruits of the independent life?

The difference is in the differentiator. It’s having that special something that sets you apart from the competition. Just as importantly, you must have the wherewithal and savvy to effectively communicate that difference to your customers.

Vive La Differentiator

A differentiator is something that distinguishes you from the competition and makes you so unique that a customer will not compare your product or service against that of potential competitor solely on price.

A differentiator allows you to enjoy a healthy profit margin. With that comfy cushion, you can offer desirable pay and perks that will attract fantastic employees. Those fantastic employees will provide quality work and will take on leadership, difficult responsibilities and complex duties that, in turn, will enable you to have the freedom you desire.

Here’s a very simplistic way of determining your differentiator. Answer the question: “How do I not end up competing on price?”

Far too often, individuals sign up for the entrepreneurial life without fully considering what they have to offer that truly is distinct in a given marketplace. And, that differentiator must be sustainable, scalable and defendable; it must be something that will endure through time, grow as your operation grows and ward off copy-cat competitors’ advances and imitations.

A Sustainable, Scalable and Defendable Difference

Without a sustainable, scalable and defendable differentiator, you are constantly clawing to try to stay in the marketplace. Yes, it’s true. You can stay in business through brute force by constantly finding efficiencies; but, it’s not a pleasant way to operate. The end result will likely not be that freedom you envision when you signed on for the entrepreneurial dream.

If you are the manufacturer, for example, finding efficiencies in your process could be a differentiator because you can sell the same product for a lower price than competitors can. However, sooner or later the competition will copy your efficiencies, softening your competitive edge.

Make Your Difference

There is a broad array of differentiators. Traditional ones include patents, trademarks, copyrights and brands. Less conventional differentiators can be related to relationships, convenience or a unique approach to business including special suites of products or services, strategies and philosophies.

Patents, Trademarks and Copyrights

Intellectual property can set your company apart, and make clear distinctions between you and the competition. You won’t be compared on price if you have something that no one else has.

These can be among the strongest differentiators and should be explored continuously. Think of a pharmaceutical company producing a drug that costs pennies to produce; it is not competing on price for the life of the patent.

Brand

A great brand (look at something like Crest toothpaste versus a no-name brand) can govern a significant premium over a generic product or service. A brand can be more sustainable than a patent, which is encumbered by legal limitations. A brand can reinforce the purported trustworthiness of a company’s products or services. As the old saw proclaimed, “Nobody got fired for choosing IBM.”

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