What is “Positioning”?

Positioning is simply explaining what your product does and why people should care about it. It’s like your elevator pitch – but for internal use to keep your team focused.

Think of it as answering: “What problem do we solve, and why are we the best choice?”

The Magic Formula

Use this simple template to write your positioning statement:

“For [type of customer] who [has this problem], [your product] is a [category] that [main benefit]. Unlike [competitors], [your product] [what makes you different].”

Real Examples:

Amazon (early days): “For web users who enjoy books, Amazon is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional bookstores, Amazon provides convenience, low prices, and huge selection.”

Harley-Davidson: “For macho guys who want to join a gang of cowboys, Harley-Davidson makes big, loud motorcycles that represent freedom and rebellion.”

Before You Write Your Positioning Statement

Answer these questions first:

  • Who exactly are your customers? (Be specific – not just “everyone”)
  • What pain are they experiencing?
  • How does your product work differently?
  • Who else is trying to solve this problem?
  • What makes you special compared to them?

Why This Matters

  • Helps your team stay focused on what’s important
  • Makes fundraising easier – investors love clarity
  • Guides all decisions – “Does this fit our positioning?”
  • Creates better marketing – you know exactly what to say

How to Name Your Company

You have three options:

1. Descriptive Names (obvious what you do)

  • Examples: PayPal, Whole Foods, Toys “R” Us
  • Pros: People immediately understand what you do
  • Cons: Harder to get domains, less memorable

2. Suggestive Names (hints at what you do)

  • Examples: Amazon (huge like the river), Mint (where money is made)
  • Pros: Memorable but still clear
  • Cons: Requires some explanation

3. Made-Up Names (no direct connection)

  • Examples: Apple, Adobe, Firefox
  • Pros: Easy to trademark, very memorable
  • Cons: Requires lots of marketing to explain

Naming Process:

  1. Go back to your positioning statement
  2. List all the important words (nouns and verbs)
  3. Find synonyms for each word
  4. Try combinations – mix and match everything
  5. Test with real people – not just your co-founder
  6. Check if domains/trademarks are available

Creating Your Brand Materials

Write a Creative Brief (1-2 pages max) that includes:

  • Background: What your company does
  • Target audience: Who you’re trying to reach
  • Your positioning statement
  • Competitors: Who else is in your space
  • Key messages: What you want people to remember
  • Brand personality: What adjectives describe you? (friendly, professional, edgy, etc.)
  • Examples you like: Other brands/designs that inspire you

Preparing for Launch

Create Two Key Messages:

SOCO (Single Overriding Communications Objective): The ONE most important thing you want people to remember.

  • Example: Dropbox’s “It just works”

SOCA (Single Overriding Communications Avoidance): The ONE thing you absolutely don’t want people to think.

  • Example: “We’re just like every other solution out there”

Build Your FAQ Document

  • Collect every possible question people might ask
  • Write clear, simple answers that tie back to your positioning
  • Keep updating it as you get new questions
  • Share it with your whole team so everyone says the same thing

Key Takeaways

  1. Start with positioning – everything else flows from this
  2. Be specific about your customers – you can’t serve everyone
  3. Know your competition – use them to explain what makes you different
  4. Keep it simple – if you can’t explain it simply, you don’t understand it well enough
  5. Test everything – get feedback from real people, not just your team

Red Flags

If you’re struggling to write a clear positioning statement, it might mean:

  • Your product isn’t different enough from competitors
  • You don’t really know who your customers are
  • You’re trying to solve too many problems at once

Remember: You can’t be everything to everyone, but you can be something great for someone specific.

The goal isn’t to create the perfect positioning statement on day one – it’s to create something clear enough to guide your decisions and help your team stay focused as you grow.

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