AI is making more products and services easier to copy. But some businesses will become more valuable because of it. Here’s how to tell which side yours is on, and what to do over the next 30 days.
Step 5 is the one I’d underline. I’ve sold three companies, and buyers always want to know what walks out the door with the founder. If it’s the client relationships, that comes off the price. I saw it last month with a staffing team asking for more leads when most of their target accounts were already clients of the firm. We built pipeline off those relationships without spending one dollar externally. The best exits are built years before the sale. Great piece, Juan.
Juan, the two diagnostic questions are the best thing in here. "What would your customer lose by switching?" is a much better test than the usual talk about building moats.
"What would your best customer actually lose by switching?" is such a good question to sit with. The point in the comments about what walks out the door with the founder is the one I keep coming back to, because if the trust only lives with the owner, it isn't really the business's moat yet.
I believe the whole software repricing ignores the crucial point about the entire business being organized around continuously delivering and sustaining the product. Anyone can make anything, but can they back it up, at scale, in a secure and compliant way, over time?
Step 5 is the one I’d underline. I’ve sold three companies, and buyers always want to know what walks out the door with the founder. If it’s the client relationships, that comes off the price. I saw it last month with a staffing team asking for more leads when most of their target accounts were already clients of the firm. We built pipeline off those relationships without spending one dollar externally. The best exits are built years before the sale. Great piece, Juan.
Number one question: Can it run and scale without the existing owner at the helm?
Anyone who had a moat in 2022 needs to revisit it in the age of AI.
On 🎯
Juan, the two diagnostic questions are the best thing in here. "What would your customer lose by switching?" is a much better test than the usual talk about building moats.
"What would your best customer actually lose by switching?" is such a good question to sit with. The point in the comments about what walks out the door with the founder is the one I keep coming back to, because if the trust only lives with the owner, it isn't really the business's moat yet.
I believe the whole software repricing ignores the crucial point about the entire business being organized around continuously delivering and sustaining the product. Anyone can make anything, but can they back it up, at scale, in a secure and compliant way, over time?