License Verification Software

A business opportunity exists in creating software that handles regulatory compliance and license verification, particularly focusing on systems that check licenses against databases. This type of business benefits from being mission-critical while having low operational complexity.

Key Points:

• Core Business Model:

  • Build software that verifies licenses and credentials against databases
  • Examples include driver's license verification for car rentals
  • Focus on regulatory compliance requirements

• Key Business Characteristics:

  • Mission-critical service that customers can't operate without
  • Low operational complexity compared to other businesses
  • High switching costs once implemented
  • Relatively cheap to operate but essential for customers

• Market Opportunity:

  • Every Western country needs these systems
  • Different regulations create multiple market opportunities
  • Each country/region requires its own version
  • Multiple versions can exist within the same market

• Competitive Advantages:

  • High downside risk for customers makes them sticky
  • Resistant to AI disruption due to compliance requirements
  • Regulatory requirements only increase over time
  • Customers won't risk switching to unproven alternatives

• Growth Strategy:

  • Can front-run new regulations
  • Be first provider for new compliance requirements
  • Gain significant advantage by being early to market