Build a Competitive Moat: A Key Way to Make Your Business More Valuable to a Buyer
Warren Buffett talks about creating a "competitive moat" around your business, AKA, creating a defendable marketing position and giving your company the highest degree of differentiation from your competitors. The deeper and wider the moat, the harder it is for competitors to compete.
Having what we refer to as “Monopoly Control” makes your business more valuable. In order to maximize your chances of being acquired for a premium price, commit to a product, service, or a bundle that does one thing well.
Build Your Moat:
Focus your limited resources on becoming so good in your niche that an acquirer reasons it would take too long or cost too much to compete. Most small businesses with limited cash can only afford to get good at solving one problem for their customers.
Consider the following:
Is there a layer of service you could add to differentiate your offering?
How can you better brand your products and services?
What is the one thing that customers care most about?
Monopoly Control is one of eight factors that drive the value of your company.
Want to find out how you score on all eight?
Julie Edge Ph.D., is chief strategist and founder of Inside Edge Solutions LLC, a boutique strategy coaching and consulting firm serving business owners seeking less chaos and complication in their business and more thriving in their life—both personally and professionally. Connect with Julie on LinkedIn at @drjulieedge