Monday, June 13, 2022
HomeBrandingConstructing a Moat cartoon - Marketoonist

Constructing a Moat cartoon – Marketoonist

An entrepreneur buddy of mine shared that one of the crucial invariable (and overused) questions he will get requested is what the “moats” are for his start-up.  He described the query as a crutch that VCs go to after they don’t know what different inquiries to ask.  

As my buddy put it:

“Extra troubling is that they’re on the lookout for a silver bullet and coaching a technology of entrepreneurs to over optimize for a “silver bullet” vs. serving to them construct sturdy cultures.  There is just one sustainable moat in my thoughts and that’s tradition.  Anything could be purchased or labored round (together with patents).”

I discovered his customary strategy the moat query very insightful:

“I reply with there are onerous moats and mushy moats and the latter are extra necessary.  What I imply by mushy moats are the 1,000 little issues we try this make us higher than our competitors (whom now we have constantly been beating regardless of charging 3-10X the worth).  Within the vein of tradition eats technique for breakfast, I’ve been telling individuals it’s simpler to dodge one big arrow than a thousand little ones.”

The moat principal was famously popularized by Warren Buffet in a 1995 Berkshire Hathaway shareholder assembly and expanded upon within the years since.  As Warren put it:

“What we’re looking for is a enterprise that, for one motive or one other — it may be as a result of it’s the low-cost producer in some space, it may be as a result of it has a pure franchise due to floor capabilities, it might be due to its place within the customers’ thoughts, it may be due to a technological benefit, or any type of motive in any respect, that it has this moat round it…

“However we try to determine what’s maintaining — why is that fort nonetheless standing? And what’s going to maintain it standing or trigger it to not be standing 5, 10, 20 years from now. What are the important thing elements? And the way everlasting are they?”

Extra just lately, Elon Musk critiqued the concept of counting on moats to compete.   As Elon put it:

“I feel moats are lame…In case your solely protection towards invading armies is a moat, you’ll not final lengthy. What issues is the tempo of innovation–that’s the basic determinant of competitiveness.”

Listed here are just a few associated cartoons I’ve drawn through the years:

“If advertising and marketing stored a diary, this may be it.”

– Ann Handley, Chief Content material Officer of MarketingProfs

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