Barrier to Entry
There are many ways in which you can create barriers to entry for your competitors. Creating barriers is critical so that you can maximize your opportunity and investment into that opportunity before markets get crowded and diluted. Some barriers are harder to build, some easier to work around, but the most popular is probably the patent.
We will spend an entire lesson on this later in the course, but here is a few examples.
First Mover Advantage
Often the company that address a market need first has the best shot at establishing a sizeable market share. Combine this with a strong brand to build customer loyalty and secure your market share for the long term.
Earning a patent is a great way to get legal protection for your idea. When you file for a patent, you have to publicly disclose how your idea works, but you then gain the right to sue others for infringement for a limited period of time.
If you’ve created something would be hard to re-create or develop, you may want to consider it a trade secret. You don’t ever have to disclose it to the public, but you also don’t have any legal protection.