Your Venture's Unfair Advantage

1.     Human Capital- Discipline and persistence. These characteristics are valuable because it will ensure that I don’t give up at the first sign of failure. It shows that I will be able to put in the work, day-in and day-out, no matter the downfalls. This is rare because human nature is usually to run away from failure and discomfort. This is inimitable because it takes a certain kind of person to stay consistent, not everyone has what it takes, and it is hard to learn (drive is something that comes from within). It is non-substitutable as you will never find a person exactly like me (we are all unique).

2.     Social Capital- Connections in the industry. This is valuable because the people I know will help give me insight as to how to succeed in the business I am in. It will also allow me to potentially receive special discounts that will give me an advantage over other competitors. This is rare because not everyone has the right contacts. This is inimitable because it is very hard to get in contact with important people (high up in the ladder). It is non-substitutable because while there are other connections out there that people may have, not all will be as willing to help.

3.     Financial Capital- personal savings. This is valuable because money is needed in order to take an idea and turn it into a business. This is rare because 60% of Americans have less than $1000 in their savings account (CNBC). This is inimitable because everyone has different financial situations and money practices. Through time, people can learn money management, but it is hard to do so in this society. While there are many alternatives to get funding for a business, personal savings will be the quickest/easiest way (non-substitutable).

4.      Customer-focused: This is valuable because it will build a loyal customer base. This is rare because not a lot of companies out there are focused on making sure the customer is satisfied (they just want the sale). This is inimitable because it is hard to 100% copy how someone deals with each customer interaction. That being said, there are a lot of thing a business can do to improve their customer service. There aren’t that many other resources that will build customer loyalty as much as having excellent customer service (non-substitutable).

5.     I will build an uplifting, positive, and inclusive organizational culture that pushes employees to help others succeed. The value in this is that it will create loyalty amongst the people working as well as motivate them to work harder. This is rare because there is a lot of toxicity in the workplace at other businesses. It is also very difficult to make everyone follow along with a culture (can’t be forced, so the hiring and training process has to be extensive), making it inimitable. The culture is non-substitutable because every organization will have different people with a variety of personalities.

6.     The idea itself. There is value in this because every business starts with an idea, so without it, there is nothing. It is rare because most people aren’t sitting around looking for opportunities, nor are they going to have the exact same idea as another person. There is uniqueness in every mind. It can easily be copied because it is a concept, but the execution is what is truly inimitable. There is a similar app out there, but it has a different target/positioning, as well as lacks all the features that my idea has (non-substitutable).

7.     Communication skills: (Value)Being able to express your ideas in a concise and persuasive manner will be imperative towards not only bringing clients but also additionally funding. This is rare because it takes a certain kind of person to successfully organize an idea into a practical and direct form that is easy to understand. It can be taught, which makes it less inimitable. The substitute would be to hire someone who has those skills, or learn it yourself, but that takes time and money.

8.     Research capabilities: You must be able to correctly research your market and target customers. This is valuable because without it, there would be a lot of time lost (trial and error would be the only other alternative; substitute). It is not super rare as people in this era have become very good at finding information due to the resources available (Google). It can be taught so it is not very inimitable.

9.     Previous experience starting a business: This is valuable because I will be better prepared to take on the challenges that come with starting a business. This also means there is a higher probability of success. This is somewhat rare as not everyone has started a real business. That being said, entrepreneurs usually start multiples business before they ‘make it’ with one, so having started only one business is not much compared to others. First-hand experience is inimitable and cannot be substituted. The only way to truly learn in business is by actually doing.

10.  Previous experience getting funding for a business idea: This is valuable because getting funds can be quite difficult in the beginning. Having this experience is pretty rare and will help make the process easier. Similar to the one above it can only be truly learned by doing it yourself (inimitable/non-substituted)

My top resource is my experience starting a business before. This is something that will save me a lot of time and money because I am more knowledgeable of how business really works. It will prevent a lot of trial and error that usually breaks businesses and people.