Small business growth 

How to Stand Out From Competitors in a Small Business

By Joe Hammer, That Small Business Guy  ·  Updated November 5, 2026

“Great service” is not a position. It’s a pulse.

You don’t stand out by being better. You stand out by being different in a way the customer can feel in two seconds. That’s positioning, and most small businesses never do it.

Walk into any chamber of commerce mixer and ask ten owners what makes them different. You’ll hear the same four answers: quality, service, experience, and “we really care.” Every one of them is true. And every one of them is invisible.

Here’s why. The customer already assumes you have those things. Claiming them is like a restaurant advertising that its food is edible. You haven’t separated yourself. You’ve just checked in.

The conventional advice is to “find your niche” and “build your brand.” Fine. But nobody tells you how. So below are seven small, specific techniques I’ve seen work for plumbers, coaches, dentists, photographers and shops with one employee. None of them need a big budget. All of them need you to be a little braver than your competitors.

1. Claim what everyone does but nobody says

In the 1920s, Claude Hopkins toured the Schlitz brewery. He saw bottles steam-cleaned, water drawn from deep wells, and yeast bred from a mother cell. The owners shrugged: every brewery did that. Hopkins said it didn’t matter. Nobody had told the public. Schlitz told them first, and it owned the idea of “pure” beer.

That’s the preemptive claim. It may be the most underused weapon in small business.

The process:

  1. Write down every step of your work, from the first phone call to the follow-up. Be boringly detailed. Aim for 30 steps or more.
  2. Circle the steps a customer never sees. The prep, the checking, the double-checking.
  3. Pick the one that sounds most surprising to an outsider.
  4. Give it a number or a name, and say it out loud everywhere.

A house painter doesn’t say “quality work.” He says: “We spend the first full day on prep: scraping, sanding, caulking every crack. That’s why our paint jobs don’t peel in the Arizona sun.” His competitors do prep too. But he said it first, and now it’s his.

2. Pick an enemy, not a niche

A niche tells people who you serve. An enemy tells them what you stand against. The second one is far stickier, because people bond faster over a shared irritation than a shared interest.

The enemy is never a competitor by name. That looks petty. The enemy is a practice, a habit or a belief your customers already resent.

  • The “four-hour service window” that wastes a whole day off work
  • The surprise fee buried on page three of the contract
  • The fitness program built for 25-year-olds
  • The consultant who leaves a 90-page binder and never comes back

How to find yours: Finish this sentence ten different ways: “I can’t stand it when people in my industry…” The answer that makes your pulse jump is your enemy. Build your headline, your guarantee and your sales conversation around killing it.

Once you name the villain, you no longer have to explain why you’re different. The customer fills in the rest.

3. Name your mechanism

Clayton Makepeace knew that prospects don’t buy results. They’ve heard every promise. They buy the reason the result will happen this time. Copywriters call it the unique mechanism.

You already have one. You just haven’t named it.

Every small business has a way it does things: a sequence, a checklist, a sixth sense from years of doing the work. Unnamed, it’s “how we work.” Named, it becomes an asset nobody else can claim.

  • A bookkeeper’s monthly review becomes “The 15-Minute Money Map.”
  • A dog trainer’s first session becomes “The Calm Door Method.”
  • A roofer’s inspection becomes “The 47-Point Storm Check.”

Three rules for a good name:

  1. Make it concrete. Numbers, objects and places beat abstract words.
  2. Make it describe what happens, not how great it is.
  3. Make it something a customer could repeat to a friend without stumbling.

The moment a prospect asks, “What’s the Storm Check?” you’ve won. They’re no longer comparing prices. They’re asking about something only you sell.

4. Mine your competitors’ 3-star reviews

Gary Halbert said the most important advantage in business is a starving crowd. Your competitors’ unhappy customers are that crowd, and they’ve written down exactly what they’re hungry for.

Skip the 1-star reviews. Those are often rants. Skip the 5-star ones too. The gold is in the 3-star reviews, where people are fair-minded and specific about what was missing.

The exercise (about two hours):

  1. Pull up Google reviews for your five closest competitors.
  2. Copy every 2- and 3-star review into one document.
  3. Highlight the exact phrases people use for the problem. Not your words. Theirs.
  4. Tally which complaints repeat. Look for anything mentioned five times or more.
  5. Turn the top complaint into your promise, using the customer’s own language.

If ten reviews say “never called me back,” your position writes itself: “You’ll hear from a real person within one hour. Every time.” You didn’t invent a differentiator. Your market handed it to you.

5. Disqualify customers out loud

Dan Kennedy built a career on a counterintuitive idea: the fastest way to attract the right customer is to publicly turn away the wrong one.

Most small businesses are terrified of this. They want everybody. So their marketing speaks to nobody. The moment you say who you’re not for, the people you are for lean in. Exclusion creates attraction.

Add a “This is not for you if…” block to your website, your proposals and your first sales call. For example:

  • “This is not for you if you want the cheapest quote in town.”
  • “This is not for you if you need it done by Friday.”
  • “This is not for you if you’d rather not be involved in the decisions.”

Three things happen. Tire-kickers leave on their own, saving you hours. Good prospects feel understood. And your price stops being the main topic, because you’ve already said price isn’t the game you play.

The bravest version: put it in your ads. Nothing stops the scroll like a business telling people not to buy.

6. Own a moment, not a market

You can’t out-spend the big players for a whole market. But you can own one specific moment in your customer’s life, so completely that you’re the first name they think of when it arrives.

Domino’s never claimed the best pizza. It owned the moment you’re hungry right now: “30 minutes or less.” Avis didn’t claim to be the biggest. It owned the moment you’re tired of being ignored: “We try harder.”

Find your moment by asking:

  • What just happened in a customer’s life when they first searched for someone like me?
  • What were they feeling at 11 p.m. the night before they called?
  • What event makes the need urgent? A move, a new baby, a failed inspection, a bad quarter?

Then build your whole message around that one moment. A photographer stops being “a family photographer” and becomes the person you call the week your parents announce their 50th anniversary. Narrower? Yes. But it’s the only one in town.

7. Run the swap test before you publish anything

Here’s a five-minute test that will embarrass most websites, including, possibly, yours.

The swap test: Take your homepage headline. Paste in your top competitor’s name in place of yours. Does it still read as true?

If yes, you don’t have a position. You have a description of your industry. “Trusted, local, family-owned plumbing since 1998” passes the swap test for half the plumbers in the phone book. Rewrite until swapping names makes the sentence false.

The one-sentence test: Then finish this line in 20 words or fewer:

“We’re the only [type of business] that [does what] for [whom], so they [get what result].”

The word “only” is the whole game. If you can’t say it with a straight face, you aren’t done. Go back to techniques one through six.

The bar-stool test: Finally, read your sentence to a stranger. If they can repeat it back to you an hour later, you’ve got a position. If they say “so… you’re a plumber?” keep sharpening.

The real reason most businesses stay invisible

It isn’t a lack of ideas. It’s fear. Every technique above asks you to say something your competitors are too timid to say: name an enemy, turn people away, claim an “only.”

That discomfort is the signal you’re on the right track. Positioning that feels safe is positioning that blends in.

Your assignment this week:

  • Write out your full process and find one hidden step to claim (Technique 1)
  • Pull 20 competitor reviews and highlight the repeating complaint (Technique 4)
  • Draft your “only” sentence and run the swap test on it (Technique 7)

Do just those three, and by next Friday you’ll be saying something no competitor in your town is saying. That’s how a small business stops competing and starts being chosen!

How growth-ready is your business?

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Joe Hammer, That Small Business Guy

About Joe Hammer

Joe Hammer has been an entrepreneur his whole working life, and every business he ran got the same treatment: sharp advertising, smart marketing and solid systems. From hair salons to chiropractors, jewelers to plumbers, he has seen that winning strategies are rarely industry-specific.

Want help putting this to work in your business?

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