Barries to entry
You have no doubt read and heard that barriers to entry are very important to investors when they are considering business ideas to back. It would be nice for every business to be in a position to have strong barriers to entry from the beginning.
However it’s relatively rare to be in a position to have a sustainable barriers to entry from the outset especially as it is becoming easier to duplicate technology or find ways around patents.
I believe it is preferable to focus on building the barriers to entry within the business, for example:
- Operating the business
- Having customers
- Good links with suppliers
- Press attention
- Creating a brand
These all create barriers to entry, perhaps not in the traditional sense but they do add serious value to your proposition in the eyes of the investor, and are things that every business can capitalise on when seeking investment.
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