What is a ‘business moat’? A business moat is a key competitive advantage that sets a company apart from its competitors.

When you have a moat around your business, as they did around castles back in the days of the war, you have a better chance of defending your startup from copy-cat thieves.

I believe the best moats in the early days of any startup must be the founder. They will bring a unique vision, execution and creative thinking that cannot be duplicated. They are the moat.

This is already true in creative industries where art and music are not that easy to copy due to the style of the creator.

  • You can rip ‘beats by dre’ but you won’t get a big enough market share, because it is Dr. Dre
  • You can’t beat Apple because Steve Jobs (is/was) the moat
  • Many have tried to copy DESIFEST, but as the creative lead, I am the moat

When I work with new founders, we spend time looking for their natural moat – something intrinsic. This is important to understand because many founders rush to replace themselves and move into other roles as their startup grows. When you understand how you are the moat or part of your startup’s moat, what you do everyday matters.

This is also one of the reasons I tend to ask founder two questions before coaching or investing,

  1. Why is this business important to the world?
  2. Why is this business important to you?

How would you answer this question? Email me at sathish@schoolio.io with your answers.

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