What’s Your Moat? Why Every Business Needs an Edge to Survive

For all of you business owners, founders and dreamers out there, I’ve got one question: What is your moat?

Not your pitch deck. Not your logo. Not the thing you brag about at happy hour. I’m talking about the real answer. The thing that makes your business untouchable.

Here’s the truth. Everybody is building castles right now. And a castle without a moat is just an invitation for someone stronger to storm the gates.

Related: Outlast Your Competition By Focusing on These 3 Areas

Moats aren’t just for billion-dollar companies

Most people hear the word “moat” and think of Warren Buffett. Coca-Cola. Apple. Billions of dollars in the bank.

That’s one version of a moat. But what about you?

Early in my career, my moat wasn’t complicated. It was hustle. My moat was showing up when other people didn’t. It was answering calls at midnight. It was knocking on doors while everyone else was still “planning.”

That moat of relentless effort gave me a reputation before I had a brand. People remembered that I showed up. That was enough to start stacking bricks, one on top of the other.

Your moat doesn’t have to be complicated. It has to be yours.

A business without a moat

I’ve seen this story play out too many times. A founder has a great idea. Maybe even a great product. For a while, things go well. Then a competitor shows up with the same idea, a louder megaphone and a bigger network. Suddenly, the first founder is out of business.

Why? No moat.

Ideas are cheap. Execution is everywhere. Without a moat, you’re just another castle waiting to be raided.

Related: 5 Ways to Succeed in a Competitive Market

What moats look like

Your moat might be:

• Grit. Refusing to quit when everyone else does.
• Focus. Doing one thing better than anyone else.
• Relationships. A community that trusts you so much they’ll never leave.
• Speed. Moving faster than your competition over and over again.
• Culture. A way of operating that competitors can’t copy.
• Distribution: The channels you control that competitors can’t touch.

It doesn’t matter what form it takes. What matters is that it protects you.

Moats require sacrifice

Here’s the hard part. Moats don’t build themselves. They take sacrifice.

You can’t build a moat by trying to be everything to everyone. You can’t build a moat by chasing every shiny opportunity.

A moat requires saying no. It requires focus. It requires protecting the thing that actually sets you apart, even when it’s tempting to spread yourself thin.

If you stand for everything, you stand for nothing. And nothing is not a moat. When I started out, my moat was hustle. Now, years later, my moat looks different.

Today, it’s more than that. It’s the reputation of consistency. It’s the relationships that span decades. My moat expanded, but the principle stayed the same. Build something that protects your livelihood.

Your moat will change, too. Early on, it might be grit. Later, it might be technology, partnerships or brand. The key is to keep widening it.

Related: 5 Success Tips for the Serial Entrepreneur Entering a New Industry

The hard question

So let me ask you again. What is your moat? If you can’t name it in a sentence, you don’t have one.

And if you don’t know, your competitors will answer it for you. And I promise, you won’t like what they say. Your moat is what protects you when the storms hit. It’s why customers choose you instead of the other guy. It’s why your business will still be standing ten years from now.

Find it. Build it. Guard it. Because without a moat, you’re not running a business. You’re just camping in a castle.