23 A - Your Venture's Unfair Advantage


1.     Patent
a.     V: It is valuable because it eliminates competitors from entry
b.     R: It is rare because it will only be given to one company
c.     I: It is impossible to copy because patents are only given once
d.     N: There are similar options, but patents are most effective to protect an idea
2.     Human Capital
a.     V: It is valuable because human capital will lead to more innovations of the product further down the road
b.     R: It is rare because human capital is unique, and I will find a special group of people working in R + D
c.     I: People cannot be copied
d.     N: It is hard to substitute people and their human capital
3.     Social Capital
a.     V: It is valuable because it creates a wide network of people
b.     R: It is rare because of the ability to network and connect with various groups of people
c.     I: One can try and imitate social capital, but it cannot truly be copied
d.     N: Like human capital, it is very hard to substitute for social capital
4.     Financial Capital
a.     V: My background in finance will help with raising capital smartly
b.     R: Not all entrepreneurs have a finance background
c.     I: It is hard to imitate finance knowledge and would require outside help
d.     N: Resources that could require same benefit would cost more money because they would have to be hired
5.     Organizational Culture
a.     V: Culture is everything and I will strive to create a great work environment  
b.     R: Not all startups do a great job with company culture, but that will be on the top of my list
c.     I: It is hard to copy culture because sometimes it may seem fake for forced
d.     N: Outside consultants can try and help with culture, but it should stem for the top down organically
6.      HR
a.     V: A great HR team can be the difference between success and failure
b.     R: I will search for a great HR team that will hire employees to benefit the company
c.     I: It is hard to imitate a great HR team and I will set them clear guidelines on what kind of employees will help the company
d.     N: There are no other resources that could provide a strong benefit like a great HR team
7.      Research & Development
a.     V: R&D will lead to innovations in the product and keep consumers buying updated versions
b.     R: Not all companies have great R & D teams, or every company would be similar to Apple
c.     I: It is very hard to imitate, and many companies are unable to
d.     N: You cannot substitute R&D because it is what drives future growth in companies
8.      Large Target Market
a.     V: Large target market means that there are a lot of different consumers to market and sell the product to
b.     R: Unlike niche markets, this large target market could become global
c.     I: It is hard to create a product that attracts a large market
d.     N: It is impossible to substitute a smaller market for a larger one
9.      Cost – Effective
a.     V: This is valuable because it makes it a no brainer for customers
b.     R: Not all entrepreneurs can strive for a cost-effective product
c.     I: It is hard to be cost – effective especially without looking into the future
d.     N: It cannot be easily substituted because it is part of the original pitch of the product
10.   Time – Saving
a.     V: This is valuable because everyone says ‘time is money’
b.     R: This is rare because it is hard for products to figure out how to save consumers time
c.     I: This is hard to replicate because if it was easy everyone would do it
d.     N: Not many other similar resources could provide this same benefit


My most important resource in my venture is the patent. Applying and receiving a patent for this product will make it legally impossible for competitors to imitate the product. Also, by the time the patent has expired the brand name will be able to make it superior to competitors.

Comments

  1. Joseph PlotkinApril 12, 2020 at 1:37 PM

    Michael,

    I agree with you that the patent is the most important resource for you. Keep in mind that when you apply for a patent there are a number of things you need to know. First is that your patent will last for only 20 years. Second is that you need to make sure nobody tries to duplicate your product; this is known as patent infringement. There are a lot of legal issues that come with applying for a patent so make sure you have a patent lawyer that ensures you your company won't be losing any more. Other than that I think your human capital is really important as well. You need to make sure you always have bodies innovating and making your company successful. Great job!

    ReplyDelete
  2. Bernard BynumApril 12, 2020 at 4:18 PM

    Hey Michael,

    I also agree that the patent is the most important resource for your product. The patent helps ensure that no competition can copy and imitate your product, giving you an advantage that they don't have. Social and Human Capital are also extremely important resources for an entrepreneur to have because network is a critical component of being able to sell a product or to spark interest.

    ReplyDelete
  3. The Mainzer PostApril 13, 2020 at 9:22 AM

    Hi Michael,

    I agree that your patent is extremely important with this product. If you don't patent it, as soon as it hits the market another company is going to copy it and get a patent themselves. I think you should get the patent as soon as possible if you plan on producing this product. Overall, you have a lot to offer as an entrepreneur and I think your product will be a great help to many people.

    ReplyDelete

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