Warren Buffett once said, “The most important thing for us is to find businesses with wide, sustainable moats.” He was talking about competitive advantage—the kind of edge that protects a business from being eaten alive by competitors.
But here’s the thing about moats: they don’t appear overnight. They’re dug one shovel at a time.
The Email That Got Me Thinking
Just this morning, I sent an email to an old client. In that email, I included a link to a tool we built. Not to brag about it. Not to say, “Look at what we made.” But because the tool solved a real problem he was facing.
What struck me in that moment was this: years ago, when he was our client, we didn’t have that tool. We didn’t have half the stuff we have now. Back then, we were basically selling a commodity. Nothing special. Nothing that would have made you say, “Wow, they’re light years ahead.”
But over the past 8, 9, 10 years, something happened. Slowly—almost invisibly—we’ve been digging that moat.
Moats Are Built, Not Bought
We didn’t wake up one day and decide, “Let’s make our business untouchable.” What actually happened was much less glamorous:
- We fixed problems as they came up.
- We added small tweaks that made life easier for clients.
- We listened to suggestions—sometimes from just one client—and built solutions. Then a second client asked for it. Then five. Then ten.
- We created products no one was asking for, and over time, they became essential.
Take one product we launched just a year ago. When it started, nobody was using it. Today, 20 clients are on it—and they love it. That didn’t just add revenue. It widened the moat. It made our offering harder to walk away from.
That’s what a moat looks like in real life. Not a single bold move, but a thousand small ones stacked over time.
How You Can Build Your Own Moat
You don’t need Buffett-level genius or a billion-dollar budget to create a moat. You just need persistence and a long-term mindset. Here’s how to start:
- Solve One Small Problem at a Time. Don’t wait for a revolutionary idea. Fix what’s in front of you. Each solved problem adds a stone to the wall.
- Listen Closely to Customers. If one person asks, odds are more people need it. Build it, test it, and improve it.
- Keep Iterating. A moat isn’t a feature—it’s the accumulation of features, services, and experiences that pile up until leaving you becomes painful for a customer.
- Play the Long Game. A year from now, you won’t see a moat. Ten years from now, you might look back and realize you’ve built a fortress.
The Bottom Line
Building a moat isn’t about flashy breakthroughs. It’s about time, patience, and iteration. You start with a commodity. You keep showing up, improving, solving, and adding. And before you know it, you’ve got something that can’t easily be copied.
That’s the moat.
Keep digging.