So, roughly, how much _does_ it cost?!
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So, roughly, how much _does_ it cost?!
Do you still have a viable business? Yes? Great, go for it and stop worrying about market sizing! No? Revisit your assumptions in the market sizing calculations - if they are as good as you can make them, and you find that being off by an order of magnitude will kill your business, then proceed carefully, because the actual market size may in fact be 1/10th what you originally estimated.
And of course, all equity should be vested, with little or none granted up front. Virtually no employee adds value the day they arrive, thus they should not have any stake in the company at that point.
In fact, I generally think that a minimum of time should be spent considering your competition (at least when you are a startup). Perhaps you set aside a few hours each month to review their progress, compare it to yours, identify features or strategies you will "borrow" from them (ie "fast follower" strategy), and consider what they'll be doing in the future that you need to respond to, or get ahead of.
Then, add those items to you action plan, and forget about your competition for the next month - focus on building YOUR business instead.
Just my $0.02 from the startups I've founded, funded, and grown.