I think a lot about business. What makes a business bad? What makes a business great? Why do some businesses fail while others are so good that they can be run by a cheese puff and still thrive? This is the stuff floating around in my head all day. As Charlie Munger says, “read enough and think enough, and eventually you won’t have to work.”
Lately I’ve been thinking a lot about local businesses and how a business can become a great local business. I’ve come up with the following list. Five things you can do to create an economic moat for your local business.
Moats are good. They protect your castle from invaders. They protect your business from the competition and sometimes they give you a degree of pricing power. Do the following five things and you’ll be well on your way to creating an economic moat for your local business.