When going out for capital, knowing the barriers to entry specific to your go-to-market strategy sends a strong message to prospective investors that you’ve charted the most effective path to market for your business. Done well, this clarifies key go-to-market considerations and potential costs as well as mitigating executional risks in reaching your target market.
Barriers to Entry are any institutional, government, technological, or economic restrictions on the entry of participants into a market or industry.
How does this relate to your fundraising effort?
Depending on the extent of said Barriers to Entry, these may represent a significant premium on the costs associated with your go-to-market strategy.
It will serve your fundraising efforts by rounding out the amount of capital you need to be seeking and a range of areas to underpin your use of proceeds.
- Carefully examine each of the 4 Primary Barriers to Entry and determine which of these apply to your business. Here are the 4 Primary Barriers to Entry:
1- Resource Ownership
2- Patents and Copyrights
3- Government Restrictions
4- Start-Up Costs
- Do the necessary research to understand the costs associated with overcoming the particular Primary Barrier to Entry you foresee needing to face
- Integrate your Primary Barrier to Entry research into your overall go-to-market strategy
Want to get prepared to raise capital successfully?
Download our Free Fundraising Checklist Here: https://thechangeagenthub.net/fundraising-checklist
Once you receive the checklist you’ll be redirected to a video walkthrough so you can use this checklist most effectively. And you’ll also be invited to check out our 9-step fundraising preparation roadmap with detailed information called Impact Incubator Immersion. This program is the exact process all our impact clients have used to raise capital successfully.
