First, determine what benefits customers receive when they purchase your product or service. This can be based on how your business operates, the quality of your work, or any other element that makes you stand out.
Then, make sure your competition doesn't offer the same proposition. You can't be as good as they are; you have to be better. This isn't as hard as it sounds. Your competitors might have the same qualities, but perhaps they don't capitalize on them. If you define the benefit and educate the customer, you've gained the advantage.
Don't take your USP lightly. It must be strong enough to continually attract new customers. If handed correctly, your USP will come to define you and your business.
Excerpted from Get Smart: 365 Tips To Boost Your Entrepreneurial IQ