Warren Buffet likes to invest in economic castles that are protected by a wide moat. A moat in business can refer to your competitive advantage. Your competitive advantage is what determines the long-term sustainability of what you are doing. This principle applies not just to a business, but to any situation that includes some form of competition. Here’s how you can widen your own 'competitive advantage' moat.
1. Identify what you do better than your competition (a.k.a. your competitive advantage). You need to focus your time and efforts in developing this area of your business.
2. Look for ways that you can do things strikingly different than the rest of your competition. If no one else is doing it, then there is a great chance you will be the best at it.
3. While constructing plans for digging your moat, think several years into the future. You want to make sure that it will stand the test of time as markets innovate and consumers change.
When I think of economic castles that are protected by wide moats, I recall companies like Coca Cola, Apple, and Chick Fil A. Although Swift Straw is not yet near the size of those companies, we are digging away at our own moat to widen our competitive advantage!
Image via JK Winders Photography.