August 28, 2019

Competitive advantage increases revenue by 30% over the competition or decreases cost by 30%. Here are five sources of competitive advantage: Recurring revenue Channel access Platform-based solution instead of singular products. Network effects in action (the value of the product increases with the number of users) Virality (not the same as network effects; users invite other users) Most businesses increase in value as the customer base grows as it validates the product/service and encourages others to use it. If a business can harness that customer base and turn it into a community that more aggressively attracts other users then it’s a competitive advantage.  Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies