Guides for startups & scale-ups

Startup positioning: a framework in 5 steps.

The short answer

Positioning comes together in five steps: understand the alternatives, name what makes you different, translate that into value, identify the customers who care most about that value, and choose the market frame in which you'll be understood. The result is one sentence that management, sales and marketing all use the same way.

The five steps

  1. Alternatives: what would customers do if you didn't exist? Competitors, spreadsheets, an in-house team, nothing.
  2. Differences: what can only you do – or do much better? Capabilities, data, approach, experience.
  3. Value: what does each difference concretely bring the customer? Time, money, risk, reputation.
  4. Best customers: for whom is that value greatest? (see ICP)
  5. Market frame: which category should customers put you in so the value is instantly clear?

Statement template

For [target customer] who [problem/trigger], [offer] is a [category] that [key benefit]. Unlike [alternative], [decisive difference].

The sentence is an internal tool, not a slogan. Headlines, pitch slides and ads are derived from it.

Signs of weak positioning

  • Swap the logo and your website could belong to a competitor.
  • Every team member describes the company differently.
  • You mostly lose deals on price.
  • Investors ask: “So how is this different from X?”

Test it in the market

Test two or three variants of the core message: as a landing page headline, in ads with a small budget and in sales calls. Measure click-through rate, conversion and the reaction in conversations. Winners become the standard – for website, pitch and campaigns.

Frequently asked questions

When should a startup work on positioning?

At the latest once you have first customers and want to scale – ideally before a funding round and before bigger ad budgets go out.

How often does positioning change?

Rarely at its core. Reasons to revisit are a new market, a new product, a strong new competitor or customers that differ clearly from your plan.

Who should be involved in positioning?

Management, sales, product and marketing – plus the voice of real customers from interviews.

Manfred “Luigi” Lugmayr

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