If you’re creating something interesting then you should expect other teams to be working on similar ideas. It’s just the way it is. Any new idea is had by 3 other people at the exact same time as you had it. So, don’t be surprised if you hear about other startups launching in your space. The challenge is to not let it distract you. He why I think early startup competition doesn’t matter.
They Usually Don’t Know Shit
Most people assume that the competitor knows something that you don’t. That they have some secret that will cause them to succeed. What I believe is that most of the time, they don’t know shit. They’re just as clueless as to how people are going to use the product as you are (don’t pretend like you don’t know what I mean). Sure they might have reported thousands of users, etc – what they aren’t telling you is their core metrics; activation, retained users, net promoter score, etc. They share vanity metrics to mess with you and you let them.
Customers Decide
Until you’re customers start asking or mentioning your competition, they aren’t your competition. Even direct competitors might not be seen that way by customers. People think Skype and their Phone are two completely different solutions – some could argue they aren’t – but does AT&T really compete against Skype? Not until their customers decide.
Most Won’t Live Long
You are not suppose to succeed. That’s the way it is. The numbers are stacked against you from day one. As soon as you start, you’ve got a 90% chance of failing. So do your competitors. Here’s my thoughts on why most won’t live long – as competitors:
60% will kill themselves:
Either by co-founders fighting, wasting money, not listening to the market, raising money from bad investors, and a thousand other decisions that they’ll have to make to succeed.
29% will pivot:
They’ll move into a completely different market doing something totally unrelated to what they’re doing today. I should know.
10% will get swallowed up
Some big company will come by and acquire them, only to smother their team or dilute the potency of the product.
That leaves 1% to create something meaningful in the market you’re in and act as true competition. The odds are against them (and you – so stay focused).
If all you survive for the next 5 years, you’ll be better off than 98% of your current competition
The Real Competitor
It’s not these so called competitors that you’re competing against, it’s your customers decision to do nothing. Change is scary. For anyone to change a behavior, either by using your app or by adding your site to their daily list of things, it means they need to change. The real competition is your customer not caring and deciding to do nothing. Stop worrying about other startups and care more about your customers indifference.
Wise Quotes
From Karl Jacob (Advisor to Clarity.fm, badass entrepreneur)
I had a swim coach who caught me looking back during a race once. He use to say:
the only thing looking back at the competition does is slow you down
From Jack Dorsey in response to Google+ competition and if he was concerned
We have concerns about building and growing Twitter, not so much about competitors.
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