Startup companies should be concerned about their sustainability. When the barriers to entry are low, then valuation will be reduced and sustainability will be a key issue for discussion with any potential investor.
A SWOT analysis is a simple tool for prioritising the external threats to the business. This should get business founders thinking about the barriers to entry for other startups wishing to enter the market and compete directly.
There are ways to increase the barriers to entry and reduce the emergence and impact of direct competitors. A useful approach is to identify and protect the intangible assets of the startup business. Such assets include software, brand, trademarks, human networks, market knowledge and capability of the team. Early stage startups intending to seek capital investment should strive to increase their valuation and increasingly this will mean optimising the intangible assets.
It is relatively easy to value tangible assets such as bricks and mortar. But how do you value your intangible assets? How do you protect your key intangible assets? The answers to these questions are key to increasing the sustainability and longevity of your business.
For more information come along to a free seminar at ecentre on Tuesday 22 May and hear from an expert. You can register here.