How To Build a Moat for Your Startup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors look for protection against the competition.

The stronger the moat around the business, the more compelling the offering.

Here are some key steps to build a moat into your startup:

Develop a unique brand that stands out.

This prevents others from copying the business model and diverting revenue away from the startup.

Build lock-ins into the business.

Design your product into the workflow of the business, making it difficult to replace.

Install infrastructure that reduces the cost of the product.

This removes low-end competitors that lack the financial resources to build large-scale systems.

Develop a truly unique product that can be protected with Intellectual Property tools such as patents or trade secrets.

This makes it difficult for competitors to simply copy the business.

Focus on a market niche or sub-segment so there's not enough business available for competitors to pursue.

The startup could develop patents around its solution for that niche, giving it an additional advantage.

The stronger the moat, the more the investor will be interested.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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