Some large companies have a so-called “moat”, a competitive advantage that seems impossible to match.

Amazon has built its delivery network and can charge a subscription and deliver packages quickly. Replicating that requires significant capital and time, and the results will be questionable.

Costco has a cost advantage moat built on a membership model and massive scale.

Coca-Cola has global brand strength, a distribution network, an outstanding product (with protected IP), and pricing power.

There are also plenty of large businesses without a competitive advantage. The result is simple: low growth, no pricing power, and low (or lack of) profitability.

This is also a description for the majority of small businesses.

So, how do you move to the side where the grass is actually greener? You need to create a moat. No, not the type of moat that the big companies have.

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1.0 The relationship moat

Small businesses can’t invest as much as Amazon. They can’t out-scale Costco. Competing on those terms is a losing game before it starts.

But here’s what a small business can do that Amazon never will: remember your name.

Most people have their favorite restaurants, where they go more often compared to other restaurants. It might not be the cheapest, but it is the best overall experience for the price. The employees greet you when you walk in, and they might remember that you don’t eat mushrooms, or they might ask if you want the regular drink. This experience feels personal, and once it is established, the customer feels the competitive advantage.

The same applies to your barber, accountant, and mechanic.

True story, back in October, I had an appointment to bring my car in for a regular check-up. One day before, I had to bring my wife to the hospital, and spent the night there, and I missed the appointment. They gave me a call the next day, and I apologized and explained the situation. I made a new appointment, and when I was there, the first question was “How’s everything going at home?”

No large business will ever match that.

2.0 The expertise moat

Another moat available is deep specialization. An expertise that either serves one industry or solves one specific problem. This cannot be developed by generalists.

• A tax advisor who specializes only in freelancers (or expats)

• A physiotherapist who focuses exclusively on runners

• A lawyer who only handles employment disputes for small businesses

• A marketing consultant who only works with restaurants

• A bookkeeper who serves only e-commerce businesses

If you are the go-to person for that specific problem, going to others will feel risky.

3.0 The community moat

This is very, very underrated. Local businesses are a part of a community in a way that no large company can ever be.

The coffee shop that sponsors the local football team, the bakery that donated to the school fundraiser, the gym owner who shows up at the neighborhood events, or the consultant who gives free lessons in the high school five times a year. The list goes on.

People want to support businesses they feel connected to. Give them a reason to feel that connection.

The catch: none of this happens overnight. Building any of these moats means showing up consistently, being reliable, following up, and doing good work (regardless of the size of the job).

It’s not just about retention of existing clients.

A happy customer will refer others.

When the reputation is built, and word of mouth takes off, that’s when the moat is there, and any competitor will struggle to beat you.

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1.0 Introduction

Customer complaints are perceived as negative feedback, problems, or proof that something is not working. Nobody wants (to deal with) unhappy customers.

But customer complaints are a gift. It’s free information about where your service or product is falling short. Once fixed/improved, it will increase your customer's value, even if you charge the same price.

Solving customer complaints leads to better products/services, which leads to happier customers who stay loyal longer, which leads to higher LTV and more word-of-mouth marketing.

This can be broken down into two parts.

2.0 How to get customer complaints

Most companies send a survey link at the end of an email, which is often ignored. This is a low-effort, low-result action.

In my opinion, the best approach is to ask the customer directly, one-on-one. High-effort, high-result.

Whenever you serve a customer, you have the opportunity to get feedback.

You can ask a neutral question, such as “What do you think about the product/service?” which is an acceptable question, but won’t get you too far.

A better question would be “Is there anything that you’d like to be better? We want to deliver the best product/service, and we value your opinion.”

Now you are asking for an improvement that doesn’t have to be a customer complaint, but it could become one from another customer. This improvement could also lead to the existing customer staying longer.

Keep track of this, and focus on what adds most value.

For medium-sized companies, the customer care department is where this data already flows. It’s all about capturing it and analyzing it.

3.0 Own the complaints and share the fixes

The worst way to handle a complaint is to argue, disagree, or dismiss.

The best way to handle a complaint is to listen, understand, and figure out how to solve it.

Once it is solved, share it. Use social media, email newsletter, blog, whatever your channel of communication is. Publicly owning a problem and showing you solved it builds more trust than any marketing campaign. It shows existing customers that you are paying attention to their feedback, and you are the kind of business that takes care of them.

4.0 The outcome

Addressing customer complaints and ensuring they don’t recur is one of the best ways to invest in the business.

The return comes in many forms:

• Fewer customer complaints in the future, meaning fewer hours spent dealing with the same complaints again and again;

• Stronger word-of-mouth marketing;

• Better online reviews;

• Increased lifetime value, current customers stay longer, and new ones churn less.

Most business owners see complaints as a cost. Something that they don’t want to deal with, but they have to. The business owners who treat complaints as a feedback loop end up with better businesses and better customers.

If you want help building a system to capture and act on customer feedback, or brainstorm, reach out to kosta@ristovskiconsulting.com to explore what’s possible.

Why most entrepreneurs are overwhelmed

Life doesn’t prepare us to be entrepreneurs. In school, we have a limited number of subjects to study, and each subject has a clear objective. Learn the material, and pass the exam.

In entrepreneurship, most have a clear objective: to succeed. But there is little instruction on how to get there.

Starting out, there are many hats to wear. You have to be the product developer, the salesperson, the finance master, and the go-to person for customer complaints. This complexity is overwhelming.

Many entrepreneurs wake up to a to-do list spanning every department of their company. Respond to customer e-mails in the morning, then switch to designing a new product/feature, then jump into bookkeeping, and then focus on social media marketing.

This constant context switching can reduce productivity by up to 40%.

What doesn’t work

Two go-to solutions that don’t work:

• Multitasking - You might think that doing many things at once means you are being super productive. But research shows the opposite. Doing several tasks simultaneously tends to reduce efficiency and even causes a drop in your creativity and the quality of your work

• Working more hours - I know many who compensate by working more hours. In turn, their quality of life suffers because there’s no work-life balance. Don’t forget: there’s only one life, and how you feel at work will carry over into your free time.

One hat at a time: The power of focus

The solution that works is to wear all hats, but not at the same time.

Embracing this single-tasking lets you dive deeper and finish faster. You will be able to produce better work and likely get it done in less time.

This doesn’t mean you ignore parts of the business, but you divide and conquer your roles through time management.

Think of your day or week in chunks, each dedicated to a particular hat, but keep the chunks as limited as possible; otherwise, you’ll be back to square one. A great example would be:

8 am to 9 am - I am answering e-mails

9 am to 2 pm - I am focusing on a new feature, with lunch as a break

2 pm to 4 pm - I am focused on marketing

Then, protect these time blocks.

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Use the Pomodoro technique to stay focused

One popular technique that I’ve used in the past is the Pomodoro technique.

You can customize the length of your work sessions and breaks to match your energy.

Here’s what it might look like:

Each pomodoro (working) session: 55 minutes

Short break: 5 minutes

Long break: 30 minutes (after four pomodoro sessions).

Here’s a free website that you can use: https://pomofocus.io/

Plan your day the night before

Many people struggle to fall asleep because their minds are racing with unfinished tasks and unanswered questions. The truth is, thinking about this when it’s time for your brain to rest isn’t optimal. It is unlikely to make significant progress, and you will end up tired the next day.

If something’s bothering you and feels urgent, assign it to a time block tomorrow. This will give you peace of mind for the night, knowing you have set aside time to figure it out tomorrow.

BUT, what about those of us with kids?

Planning is hard. Planning with kids is impossible.

They don’t really care about your time blocks (and they shouldn’t). So, what’s the solution? There’s a quote I like: A marathon is just one step in front of the other.

If you focus on the length of the marathon, it’s overwhelming. If you focus on taking just one more step, it feels doable. Focus on the next step.

Instead of focusing on the next day or week, make a list of all the tasks that you need to get done, and focus on the first one. It might take you 1 hour, it might take you 4. Once you have that done, focus on the next one.

Delegating

I put this one last, because most starting out cannot afford to delegate, and that’s completely normal.

But over time, it becomes an option. And when it does, start with the hats you don’t need to wear, such as bookkeeping, admin, scheduling, etc. Even a few hours a month of support (from a freelancer or VA) can free you up to focus on what matters most.

Today is the best time to be an entrepreneur.

You don’t have to do it all, all the time. Just the next thing, with intention. If you are stuck, overwhelmed, or need help with brainstorming, reach out to kosta@ristovskiconsulting.com to explore what’s possible.

1.0 Introduction

During the last week of every year, I sit down and set my goals for the next year. This is the 6th year I’ll be doing that.

Goal setting is one of those activities that everyone would agree is important, and almost everyone does poorly. Not because they lack ambition, but because they optimize for the wrong thing.

Over time, I’ve created a rule: if a goal depends on anything other than my own action, it’s not within my control.

2.0 Output goals (and why they aren’t the best way)

Output goals describe desired outcomes, and not the actions required to get there.

• Reach 10,000 subscribers

• Get five new clients

• Lose/gain weight

They are motivating, but they depend on many factors, and even more importantly, output goals provide very little usable feedback throughout the year.

Most of the time, you’ll only know if you’ve hit or missed the goal at the end of the year. You have no idea if you’re slightly behind or completely off-track. What started as “motivation” doesn’t help when you’re in the middle of the year.

Which is why I believe input goals are the way to go.

3.0 Input goals

All the output goals mentioned above can be broken down into actions to reach them. These actions are within your control. These are the input goals.

Reach 10,000 subscribers - Make two videos/posts per week.

Get five new clients - Send X outbound messages per week.

Lose/gain weight - Workout three times a week

Don’t get me wrong, the output goals still matter, but this way, you only focus on what is within your control.

You can measure it weekly and even adjust it if needed.

Do you want to read more? Input goal: Read 5 hours per week.

Do you want to meet more people? Input goal: Go to 2 events per month.

Do you want to switch jobs? Input goal: Send five applications per week.

Do you want to write a book? Input goal: Write for an hour every day.

Do you want to grow your X audience? Input goal: Write 50 tweets per week.

You get the point. In every case, the pattern is the same: define the outcome, then commit to the actions you fully control.

4.0 Final words

Find your output goals, then set input goals you can control. I have three types of input goals:

First: Family-related (These goals help me be a good father, husband, brother, and son)

Second: Personal goals (These goals help me be in good shape, physically, mentally, and emotionally)

Lastly: Business goals (These goals ensure my business is in good shape)

P.S. Do not set too many input goals. Having a few input goals for each category is more than enough.

I hope you find this useful, and I wish you lots of success in 2026!

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Business owners are used to tracking sales, costs, and margins.

But, there’s another metric that is hidden in plain sight, that can make or break your business: asset utilization.

Think of it as the percentage of time (or capacity) that an asset is actually being used, compared to the total time it could be. The opposite of this is the idle rate.

Restaurant example

Let’s say you rent a restaurant space. You pay for it 24/7, but you only operate 5 days a week, 8 hours a day.

• Hours in a month: ~730

• Hours you operate: ~170 hours

• Utilization rate = 23%

• Idle rate = 77%

That means, you are paying rent for the space to sit empty A LOT.

This is one (of the many reasons) why restaurants are tough, low-margin businesses. The fixed cost is there, whether you are serving customers or not.

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Restaurant solution

What if three chefs each ran their own restaurant concept in the same space:

• Breakfast/brunch

• Lunch

• Dinner/late night

Suddenly:

• The space is used nearly 24/7

• Each chef’s rent cost per hour drops

• Everyone has a higher chance of making a profit

Bonus: Cooking classes on the weekend. After all, it comes with no extra rent-related costs!

Now, you might wonder, well, I don’t have a restaurant, so this doesn’t apply to me. Idle assets are everywhere.

• Gyms are packed between 6 am and 9 am, as well as 5 pm and 8 pm. However, there’s not much going on in the middle of the day, as most of its customers are working.
  Solution: Rent the space to yoga instructors, host corporate wellness sessions, or run kids’ fitness programs during off-peak hours.

• Trucks & delivery vans sit in the parking lot outside delivery times.
  Solution: lease them to other businesses looking for their deliveries when you’re not using them.

• Event venues are booked on weekends but empty during the week.
  Solution: Offer discounted weekday rates for corporate workshops or community events.

• High-end equipment (photography studios, 3D printers) is often used for only a few hours a week.
  Solution: Rent to freelancers or other businesses.

• Office spaces come very close to the first restaurant example in terms of utilization/idle rate.
  Solution: List them on coworking or event rental platforms

The list goes on.

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The Mindset Shift

It is common for business owners to think of certain costs, like rent or equipment, as fixed. But if you increase its utilization rate, suddenly the cost per hour decreases. So start asking:

• What percentage of the time is this asset making me money?

• Could someone else use it during the “dead” hours?

• Could I repurpose it for another type of customer?

You’re already paying for these assets 24/7.

Instead of cutting costs, sometimes the smarter move is to make what you already have work harder for you.

There is often a great opportunity in squeezing more value out of what you already own.

The impact

Most industry data points put average restaurant rent at ~7% of gross sales.

When staring out, it’ll likely be higher, as it takes time to build relationships with customers. But if it stays at 10% or above, likely there’s no profit.

And here’s the bonus. Sharing a space doesn’t just cut costs - it might allow you to afford a better location, with higher foot traffic, at at same, or lower cost.

Higher utilization, lower risk, bigger upside.

The other side of the equation

You can use this same approach if you’re on the other side. If you're passionate about cooking, starting a restaurant is a significant leap. It requires a significant upfront investment, which might not work well.

But what if you could rent the kitchen of an already existing restaurant for a few hours a day, outside of its business hours? You have the opportunity to give it a try, without making the big jump, while the restaurant gets some compensation for the idle equipment!

If you are stuck, overwhelmed, or need help with brainstorming, reach out to kosta@ristovskiconsulting.com to explore what’s possible..

Approximately 20% of new businesses fail within the first year, 50% within the first five years, and 70% within ten years.

Economists and statisticians often survey the dead, seeking to understand why.

I’d argue this is a complete waste of time.

Their reports point to familiar answers:

• X% failed due to poor cash flow, and

• Y% due to a lack of market need.

But knowing this doesn't offer a map for success; it just labels the graves. You can’t build a strategy on a statistic.

Let’s take a more practical approach, inspired by the great Charlie Munger.

What if we ask the opposite question: Why do businesses succeed?

The easy answer is "they solve a problem." But this is incomplete. The businesses in that 70% graveyard were also solving a problem. Solving a problem isn't enough.

Think about the businesses you are loyal to.

Think of your favorite restaurant. It offers the same dishes every time. You know what to expect, you trust the quality, and you might even know the waiter's name.

Think of your hairdresser or barber. It's the same service, consistently delivered. You've likely been going to the same one for years.

Now, think of your gym, your car mechanic, your plumber, your electrician, your dog walker, your accountant. They all share a powerful common trait: They are the proven, reliable, default solution to your need. You have a relationship with them, built on a foundation of consistency and trust. This is their advantage.

This is who you're competing against when you start a business. You are not competing against a bad solution; you are competing against habit, comfort, and the powerful inertia of "good enough."

Your potential customers are already being served by someone they know and trust.

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So, how do you win? How do you convince someone to leave their proven, reliable solution for you, the unproven newcomer?

It all comes down to one thing: You must offer overwhelmingly more value.

Your solution must be significantly better, faster, and/or cheaper. Not just marginally. It has to be so superior that it overcomes the friction of switching.

Most businesses fail because they offer similar value to their competitors. That’s not enough.

If you are stuck, overwhelmed, or need help with brainstorming, reach out to kosta@ristovskiconsulting.com to explore what’s possible.

All by himself.

He leased a warehouse, sourced raw materials, purchased the necessary equipment, created his website and an Etsy shop, and started selling.

The average selling price was $4,000. He was selling ~100 products per year.

All of this sounds good. However, he wasn’t a business person. After the pandemic, the sales were down ~40%, and he was feeling exhausted.

He has been doing the same thing, alone, since 2017. The dream had started to feel like a trap. The drudgery of fulfilling orders was replacing the passion that started the business.

So, he hired me.

I spent ~3 days with him, trying to understand everything he does, while also getting to know him as a person. During those three days, five key actions were identified that ultimately led to $85,000 in additional annual profit.

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#1 The elephant in the room - Shipping

Shipping large physical products is costly, especially if the majority of the customers are in a different country (in this case, from Canada to the United States).

These costs were steep, sometimes over $1,000 per product. At first glance, there’s not much to be done. After all, a small business owner has no leverage.

However, there were occasional returns, and these were particularly damaging.

• Item shipped: $1,000

• Item returned to Canada: $1,000

• Item sold again: $1,000

Total: $3,000 in shipping costs.

But it gets a bit worse. When the first customer ordered the bed frame, it was "custom-made” for him, and the $4,000 selling price was justified.

Once it was returned, it was no longer custom-made for the next buyer. It was a bed frame waiting for a buyer. Therefore, it had to be heavily discounted.

So every return resulted in an unprofitable sale.

Solution: We partnered with a fulfillment warehouse located in the U.S. Returned items were shipped directly there, repackaged, and then shipped out to new customers. This simple logistical shift drastically cut shipping costs and freed up his time.

#2 We improved the paid advertising campaigns

A significant part of the three days was focused on how the products were presented online and what could be improved.

The SEO was already looking good, and the impressions were there.

His products were of premium quality, but his online presence didn’t fully reflect that. The traffic was there, but the ads, imagery, and copy weren’t compelling enough to convert visitors into buyers.

Solution: Start from scratch. We replaced basic product shots with high-quality images that told the story of his craftsmanship, showcasing the entire process from raw wood to finished product. This visually justified the premium price. We paired this with more descriptive headlines and copywriting that captured the artistry behind the work. The result? A higher conversion rate and more sales, without increasing his ad spend.

#3 We monetized unused warehouse space (and parking lots)

During busy periods, less than half of the warehouse was in use. When the business was started, there was no smaller warehouse available around that area, and this one had an acceptable price.

Solution: Sublease part of the warehouse, as well as the two unused parking lots.

The biggest problem was his isolation and burnout. He was a creator who had become an assembler, and the lack of social interactions was draining his energy.

So, that’s what we aimed to fix next.

#4 Workshops

Woodworking is a profession for many, but it can also be a hobby. So, we brainstormed around the idea of organizing workshops.

His manufacturing process was highly organized, and he was working on five bedframes at once.

So, we identified a few activities in the process, where a complete amateur could follow his instructions, and do “an okay” job. Not a great job, but also not one where the product is ruined.

The workshop was a win-win:

• The payment for a 4-hour workshop was low, which attracted many people who wanted to learn the basics of woodworking from a professional.

• Although he is more experienced and can do the job faster than the rest, it would take him longer than five amateurs under his supervision; and

• He got to socialize, teach, and share his passion, which fought off the loneliness and reignited his creative spark.

#5 The big reward

With the above decisions:

• The conversion rate was higher, leading to more sales;

• The shipping costs were reduced;

• No time was spent on repackaging returned products;

• Unused warehouse space and parking lots were monetized;

• A workshop income stream was introduced;

• Manufacturing time was slightly reduced.

What started as an exhausting one-man operation became a revitalized business, with an extra $85,000 in profits.

But the real reward wasn’t just the money. It was the freedom. With a more efficient and profitable business, he finally had the ability to hire others to manage the day-to-day orders. This allowed him to get back to what he loved: designing new products and being the architect of his business, not just a lonely worker in it.

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If you found this business case helpful, please feel free to share it with a fellow business owner.

If you are stuck, overwhelmed, or just know there’s more potential waiting to be unlocked, let’s talk. I work with solo founders and small business owners to fix what’s not working and grow what is.

This is a no-cure, no-pay service. If I don’t create value for you, you don’t owe me a cent.

Reach out at kosta@ristovskiconsulting.com to explore what’s possible.