Business Magazine

Have You Created a Citadel for Your Startup?

Posted on the 30 July 2011 by Martin Zwilling @StartupPro

castle-fortress-bacoliBy Bob La Loggia, CEO StormSource Software

Business is often compared to war and waging battle with enemies. Indeed, Sun Tzu’s “The Art of War” is one of the most popular business books ever written, and it was originally written as a military strategy guide. Battle terminology has been a mainstay in the business lexicon for decades. The list of war references used in business is almost endless, from “gathering the troops” to “losing a battle but winning the war.”

One battle concept that has enduring applicability is that of creating a citadel. A citadel is a fortress in a commanding position in a city. The purpose of a citadel is to provide defense for a city. Citadels are fortified, meaning they have the firepower to fight off enemies. When a citadel is built, a city is preparing itself for a battle.

In today’s competitive business environment, where barriers to entry seem to be crumbling before our eyes, creating your citadel is more important than ever. But, erecting a citadel goes way beyond just creating barriers to entry. Developing a citadel involves the following:

  • Creating a battle-ready infrastructure. Michael Gerber’s must-read book on starting a business, “The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It,” talks about working "on" the business instead of "in" the business.

    It’s a bit counterintuitive, but by focusing on creating a rock-solid infrastructure, whereby all processes are sharpened, documented and turnkey, you are developing a foundation that will allow your business to expand swiftly. You are also developing a key to business success that is rarely talked about: transforming new recruits into productive warriors quickly.

  • Developing a proven, but flexible business model. Your business model is the structure that supports your strategic plan. Your business model is how you get customers, grow and make money. The paradox of a business model is not that you have to continue to tweak it until you reach perfection, but you have to continue to remain willing to adjust it constantly based on customer and market information.

    Ideally, you’ll end up with a core, proven model that you adjust along the fringes on a real-time basis. It’s the same mindset used in planning a citadel. You hone and execute your core strategy, then adjust some of the details as you gather information on the enemy, the elements, and other pertinent information.

  • Building a reputation. The most effective citadels are never used. They are built as a protective measure. They say, “We are here and ready to fight. We won’t back down from any battle.”

    When citadels are constructed effectively, enemies usually move on to fight less-formidable opponents. When you build a reputation as an authority in your segment, a juggernaut that won’t let up, and a company that will defend what it has to the death, competitors will think twice about attacking.

Yes, citadels are fortresses. They are bastions of your business. Your citadel is your protection from the competition. Creating barriers to entry is important, but creating a strong infrastructure, having a proven business model, and establishing an impenetrable reputation will help ensure any would-be adversaries take their fight elsewhere.


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