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As an investor, I always listen carefully to what an entrepreneur says, and does not say, about competition. Every business area has competition and every customer has alternatives, so a smart entrepreneur needs to acknowledge these as a positive in defining a big market, and position the features of a new solution in this context.
As an investor, I always listen carefully to what an entrepreneur says, and does not say, about competition. Every business area has competition and every customer has alternatives, so a smart entrepreneur needs to acknowledge these as a positive in defining a big market, and position the features of a new solution in this context.
One of the toughest and yet most important questions you will be asked by savvy potential startup investors is “What is your sustainable competitive advantage?” Yet many entrepreneurs, maybe in their passion for their new product, gloss over this one, or even announce that they have no competition.
One of the most important questions you will be asked by potential investors is how your solutions beats the competition, not just today, but over the three to five year life of their investment. The concept is called “sustainable competitive advantage.” That implies competitive now, and the potential to stay in the lead.
Every business has an intellectual foundation where the CEO’s knowledge and vision create a barrier to entry that deflects some or much of the potential competition. Or we do so with brilliant research and development, highly trained sales forces, large advertising campaigns, or secret processes.
One of the toughest and yet most important questions you will be asked by savvy potential startup investors is “What is your sustainable competitive advantage?” Yet many entrepreneurs, maybe in their passion for their new product, gloss over this one, or even announce that they have no competition.
As an investor, I always listen carefully to what an entrepreneur says, and does not say, about competition. Every business area has competition and every customer has alternatives, so a smart entrepreneur needs to acknowledge these as a positive in defining a big market, and position the features of a new solution in this context.
Competition for your new hydrogen fuel auto engine is not limited to other hydrogen auto engine offerings, or even other autos. Remember the transportation transitions from horses to autos to trains to airplanes. Here are some of the key ones: Patent protection in place as a barrier to entry. Investors check connections.
Competition for your new hydrogen fuel auto engine is not limited to other hydrogen auto engine offerings, or even other autos. Remember the transportation transitions from horses to autos to trains to airplanes. Here are some of the key ones: Patent protection in place as a barrier to entry. Investors check connections.
The critical success factors for a product business are well known, starting with selling every unit with a gross margin of 50 percent or more, building a patent and other intellectual property, and continuous product improvement. You don’t have enough hours in a day, or trained people, to succeed with lower margins in a services startup.
Experienced entrepreneurs will tell you that the initial idea is the easy part, and it’s the later implementation, and the competitive business marketing that are the real creative challenges. If you study the Amazon 1-click patent long enough, you’ll likely find something of your own worth patenting. You cannot will a new idea.
Every business has an intellectual foundation where the CEO’s knowledge and vision create a barrier to entry that deflects some or much of the potential competition. Patents, branding, marketing and more. Or we do so with brilliant research and development, highly trained sales forces, large advertising campaigns, or secret processes.
Creating intellectual property, including patents, is the kay to long-term value and a sustainable competitive advantage. Training and coaching. Sustainable innovation is really the only sustainable competitive advantage. Innovative technologies have no value until they are turned into solutions to real customer problems.
Creating intellectual property, including patents, is the kay to long-term value and a sustainable competitive advantage. Training and coaching. Sustainable innovation is really the only sustainable competitive advantage. Innovative technologies have no value until they are turned into solutions to real customer problems.
One of the most important questions you will be asked by potential investors is how your solutions beats the competition, not just today, but over the three to five year life of their investment. The concept is called “sustainable competitive advantage.” Our patent will protect us.” We all recognize that there are no guarantees.
I call this linear thinking , and it’s a sure way to be ultimately overrun by your competition. For example, Elon Musk, who owns many battery patents , normally kept for a competitive edge, decided to open them all to any competitors in an effort to expand the market for his electric vehicles.
One of the toughest and yet most important questions you will be asked by savvy potential investors is “What is your sustainable competitive advantage?” Yet many entrepreneurs, maybe in their passion for their new product, gloss over this one, or even announce that they have no competition. Proven team with inside relationships.
Investors know that operational and employee expenses are always higher than anticipated, not to mention customer acquisition costs, capital expenses, and ongoing competitive initiatives. Competitor resources include larger cash assets, trained staffs, an existing customers, and a known brand in the market.
The critical success factors for a product business are well known, starting with selling every unit with a gross margin of 50 percent or more, building a patent and other intellectual property, and continuous product improvement. You don’t have enough hours in a day, or trained people, to succeed with lower margins in a services startup.
Experienced entrepreneurs will tell you that the initial idea is the easy part, and it’s the later implementation, and the competitive business marketing that are the real creative challenges. If you study the Amazon 1-click patent long enough, you’ll likely find something of your own worth patenting. You cannot will a new idea.
A while back, I wrote about the importance of a “ sustainable competitive advantage ,” and outlined the business plan value and limitations of patents and competitor feature comparisons. Train every employee to be a customer service champion. Find out everything you can about how to deliver great customer service.
The critical success factors for a product business are well known, starting with selling every unit with a gross margin of 50 percent or more, building a patent and other intellectual property, and continuous product improvement. You don’t have enough hours in a day, or trained people, to succeed with lower margins in a services startup.
Experienced entrepreneurs will tell you that the initial idea is the easy part, and it’s the later implementation, and the competitive business marketing that are the real creative challenges. If you study the Amazon 1-click patent long enough, you’ll likely find something of your own worth patenting. You cannot will a new idea.
So before you decide to move your manufacturing, software development, or call center out of town, make sure you understand the following considerations: Don’t give someone else control of your competitive advantage. Saving cost won’t help you if you can’t make the daily innovations required to stay competitive.
Creating intellectual property, including patents, is the key to long-term value and a sustainable competitive advantage. Training and coaching. They benchmark their ideas against competition, use metrics to track acceptance, sales growth, and return on investment. Accountability. Observe and measure. Marty Zwilling.
Don’t forget to consider customer alternatives, like trains versus airplanes. These days, you can find existing patents and trademarks through Google and the US Patent Office online site without spending thousands of dollars with your favorite patent attorney. Check for intellectual property barriers in your way.
So before you decide to move your manufacturing, software development, or call center out of town, make sure you understand the following considerations: Don’t give someone else control of your competitive advantage. Saving cost won’t help you if you can’t make the daily innovations required to stay competitive.
Being first to offer something is often used to cover the fact that you have no patent or intellectual property. Make it clear that you have considered competition in the broadest sense, including indirect competitors and alternative solutions available. Don’t say “Product x is more expensive and hard to use.”
Registered patents and other intellectual property. From an investor perspective, understanding and acting early to establish a sustainable competitive advantage, and barrier to entry, is the best assurance of a financial return. There is no substitute for experience and trained skills in the business area you are attacking.
Being first to offer something is often used to cover the fact that you have no patent or intellectual property. Make it clear that you have considered competition in the broadest sense, including indirect competitors and alternative solutions available. Don’t say “Product x is more expensive and hard to use.”
On the other hand, if you have a new technology, with patent applied for, maybe you more time to get it right. Don’t wait for anyone to pay your way to class, or give you time off for training. There certainly isn’t anything wrong with a regular well-paid job and career, with health-care benefits, and a competitive retirement plan.
Competition. Think broadly here, like planes versus trains. Investors look for a sustainable competitive advantage, like a patent. Test your projections against actual published reports from similar companies. How many competitors do you have? No competitors probably means there is no market. Unique selling proposition.
For example, “I have patented a new tire that will double the wear mileage at half the cost.” Describe technology and features, not competitiveness. You should also deliver it at the beginning of every networking opportunity, and train your team to do the same. Too much technology and too many features can scare off both.
Being first to offer something is often used to cover the fact that you have no patent or intellectual property. Make it clear that you have considered competition in the broadest sense, including indirect competitors and alternative solutions available. Don’t say “Product x is more expensive and hard to use.”
Registered patents and other intellectual property. From an investor perspective, understanding and acting early to establish a sustainable competitive advantage, and barrier to entry, is the best assurance of a financial return. There is no substitute for experience and trained skills in the business area you are attacking.
Registered patents and other intellectual property. From an investor perspective, understanding and acting early to establish a sustainable competitive advantage, and barrier to entry, is the best assurance of a financial return. There is no substitute for experience and trained skills in the business area you are attacking.
The value of patents and trademarks is not certifiable, especially if you are only at the provisional stage. NewCo has filed a patent on one of their software tool algorithms, which is very positive, and puts them several steps ahead of others who may be venturing into the same area. All principals and employees add value.
So before you decide to move your manufacturing, software development, or call center out of town, make sure you understand the following considerations: Dont give someone else control of your competitive advantage. Saving cost wont help you if you cant make the daily innovations required to stay competitive.
Sustainable competitive advantage. Thus, it needs an advantage to rise above the crowd, such as a patent and trademarks, unique market positioning or support from industry partners. In all cases, you need customer support, formal processes and training in place. Solution production and support.
The critical success factors for a product business are well known, starting with selling every unit with a gross margin of 50 percent or more, building a patent and other intellectual property, and continuous product improvement. You don’t have enough hours in a day, or trained people, to succeed with lower margins in a services startup.
They don’t realize that knocking competitors is assessed as a weakness and denying that you have any competition suggests there is no market for your solution. Taking action to file even a provisional patent shows you have the conviction and skill to execute while others have no barrier to entry.
The value of patents and trademarks is not certifiable, especially if you are only at the provisional stage. NewCo has filed a patent on one of their software tool algorithms, which is very positive, and puts them several steps ahead of others who may be venturing into the same area. All principals and employees add value.
As an investor, I always listen carefully to what an entrepreneur says, and does not say, about competition. Every business area has competition and every customer has alternatives, so a smart entrepreneur needs to acknowledge these as a positive in defining a big market, and position the features of a new solution in this context.
On the other hand, if you have a new technology, with patent applied for, maybe you more time to get it right. Don’t wait for anyone to pay your way to class, or give you time off for training. There certainly isn’t anything wrong with a regular well-paid job and career, with health-care benefits, and a competitive retirement plan.
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