Table of Contents
What makes a product defensible?
A network effect is when another user makes the service more valuable for every other user. Once your company gets ahead, users won’t find as much value in your competitors’ smaller networks. They make it defensible.
What do investors look for in a product?
Investors look for companies that can grow quickly and manage this high growth scale. Investors must see that the company can generate significant profits beyond the initial product idea with adequate financial projections and a plan to include multiple sources of revenue.
What questions would you ask if you were an investor?
You should always plan to answer all of these questions with your pitch deck.
- What problem (or want) are you solving?
- What kinds of people, groups, or organizations have that problem?
- How are you different?
- Who will you compete with?
- How will you make money?
- How will you make money for your investors?
What is a defensible market position?
A defensible position is one which remains viable even after subsequent competitive entry. The flavor of the niching problem is retained by using positioning as the key to defensibility. A defensible positioning strategy may involve targeting multiple segments, introducing multiple products or both.
What is a defensible brand?
Leave this field empty if you’re human: “The brand is defensible” is a phrase increasingly muttered across the consumer landscape. The idea is that the look, feel and meaning of the company and its products have inherent defensibility, giving the company a long-lasting competitive advantage.
How do you answer an investor question?
Don’t know the answer to a question? Here are 5 do’s and don’ts:
- Don’t panic. Your first reaction may be to panic.
- Don’t make things up. You are going to feel the need to answer every question, and have the perfect answer every time.
- Do ask a question.
- Do provide relevant, related information.
- Do admit you do not know.
How do you ask an investor question?
Ask yourself:
- How does the investment work?
- What are your goals?
- What are the risks of this investment?
- How much do you expect to earn on this investment?
- How long do you plan to invest.
- What are the costs to buy, hold and sell the investment?
- What other investments do you have already?
What does defensible mean in business?
Defensibility emerges from differentiation. A strong differentiator is something in the company’s product/service offering that cannot be easily replicated or eclipsed by a competing company. Let’s have a look at the key differentiators and examples of companies that built them to be defensible.