Posts Tagged ‘barriers to entry’

Barriers to Entry

April 8, 2011

When people talk about starting a new business or entering a new market, a common topic of discussion is barrier to entry.  Simply put, barrier to entry refers to how difficult it will be for you (or your competitor) to enter that market and what obstacles stand in your way.

Traditional business models determine barriers to entry by looking at things like capital requirements, government regulations (for example, you can’t practice law unless you have a law degree and pass the bar), or economies of scale (can you compete on price against Walmart?).  Indeed, these are serious hurdles to consider and prepare for when you’re writing your business plan.

But I think the greatest barrier isn’t any of these, and actually doesn’t reside in the market itself.  The biggest obstacle to moving into a market or creating a new business is the mental hurdle you must clear between coming up with the idea and taking action.  I can’t tell you how many people I talk to every day who have great business ideas that will never see the light of day because they don’t (won’t) act on them.

Think about it….once you make the decision to pursue your dream and move forward (or ship, as Seth Godin puts it simply), the rest of those barriers will fall like dominoes.  They’re no match for your passion, your resolve, and your will.

 

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