True Startup Competition

This touches on another thing people forget in the world of business: There's room for more than one. We're entering the music startup scene, where there are lots of existing companies, but just because one of them succeeds doesn't mean us or all of the others have to fail. It just makes for better press fodder to always pit companies against each other like boxing matches.

I've often given advice, helpful links or other help freely to people you might consider my competitors. I think it's just a form of networking, and I'd rather win what success I have on merit and just working hard/smart enough to win over users.

Focus more on what your customers want than what your competitors are doing. It is possible to get into a race with your competitors to implement features that your customers don't care about.

In growing markets, you can both be acquiring customers, and have different niches. If customers are switching from your competitor to you or from you to your competitor, it can be more contentious. Other times, the same people may use both products for different needs. Also, you may have shared needs with your competitors, politically or other wise. Further, if both your customers are switching from an older solution, your real competitor is the old company.

A great way to think out of the box, but the "indifference" always has two sides, like a scale. When people have a problem your startup solves, but they ignore it, they are not really indifferent -- they've just found another way to solve it which fits them better than your does.

Competition is not just other companies that do the same thing you do; competition is everyone -- and everything -- that solves the same problem for the same customer base. E.g. Coca Cola's competition is not just Pepsi, it's everything that is capable of ending someone's thirst, from tap water to cactuses.

I remember working on a site for a client, and every week he'd have a new list of things he wanted built based on what his competitor's site was doing. And every week I'd tell him to think about it in a different way, act like the leader, keep it simple and not just be a me-too site. Never took the advise. In fact, took forever to relaunch because he was always concerned with playing catch-up. I know the other site is still doing great, but I don't think his site has changed in years now...

I liked the message of the post being that "you are your own worst enemy," but I think that's good advice for a seasoned entrepreneur. I think a young kid or a first-timer will view this advice with too much naivety, and fall into the habit of saying "we don't have competitors" which will just make them look foolish to investors. You ARE your own worst enemy, but don't ignore what everyone else is doing.

Don't really agree, sure you shouldn't sit there and obsess over your competition, but you should have a good idea of who they are and what they are doing. Not paying any attention could result in you totally missing the ball on changing business conditions and focusing on the wrong things.