If you are growing your business for sale or you're an early stage start-up seeking funding, one question that you will likely hear is:
"What's your moat?"You might not hear it phrased exactly like that but the clue should be in the question.
Moat - a deep, wide ditch surrounding a castle, fort, or town, typically filled with water and intended as a defence against attack. - Dictionary definitionSo in plain English: What is it that your business has that stops someone else from (quickly) copying you?
It is important to have a think about this in any business. For some it will be straightforward, for example, some core technology for which they have a registered patent. Others might have a unique process that is secret.
There might be a whole host of different variables but you should be looking at ways that might stop "copy-cats" stepping in to profit off your initial advances.
If you want to fetch a decent valuation on your business then your "moat" will likely be one important variable that will be taken into account.
Have a think about it and be prepared to answer that question with the widest and deepest moat that you possibly can!
