STARTUP COMPETITORS – NEVER SAY – I HAVE NO COMPETITION

STARTUP COMPETITORS – NEVER SAY – I HAVE NO COMPETITION

❏ Today I’m speaking on Startup Competitors – Never Say – I Have No Competition. No matter how big an advance you “widget” is, folks are “getting by” somehow without you! How they are getting by may be clunky, but that set of tools is getting the job done! That method of getting the job done is your Competition!

One of my responsibilities as an Executive Coach is helping founders identify their competitors is and what threat level they have. Sadly, about 1 or 2 out of every ten startup and small business presentations I see state “I have No Competition.”. Another 3 or 4 out of 10 do not fully state who all their competitors are. When I challenge them on either claim, I get a variety of responses. Some state “That company is in another space.” Others state “They’re not doing the same thing we are.” Another will state “They’re using Excel spreadsheets to do what we do.”.

Even if you’ve developed “Teleportation,” you still have serious competition. Jet aircraft, car, and trucks are competitors. Heck, even those two appendages at the bottom of your legs – your own feet – are competitors. Your competitors are proven, inexpensive, multi-sourced and “trusted.” Your teleportation technology is none of those. So please, no matter what you make, or the service you provide, Never say – I Have No Competition.

Startup Competitors: Startups – You Do Have Competition!

Well, teleportation is an extreme example, but I hope I got my point across. No matter how big an advance you “widget” is, folks are “getting by” somehow. That “somehow” is “proven.” It is of “known reliability.” The “Cost” is well understood. Anything “new” will possess a certain level of “skepticism.” You solution you may believe is the “best thing since sliced bread,” but you’re going to have to convince your buying public!

People are Creatures of Habit

When I was in China 20 years ago, I traveled between two provinces with one of the “governors.” As we passed through the mountains, I saw thousands of workers with pickaxes, shovels, and carts. I did not see a single piece of mechanized equipment being used to build the roadway. I asked the governor why heavy earth moving equipment wasn’t being used to build the road through the mountains. The governor replied, “We’ve built roads this way for a thousand years, and it works.”

The moral of this story is, don’t assume just because you’ve built a better widget that a customer wants to buy it. If they have a solution that works by solving their problem, they may not be looking for any solution.

I Want to Buy a “Hole”

I went to Home Depot and told the salesperson that my wife wanted I needed to hang a large, heavy picture. He told me a list of things I would need. A 3/8″ Drill, a 1/4″ drill bit. 12-foot extension cord. A box of heavy duty picture hooks. Ten feet of multistrand picture wire. A pair of wire cutters. A pair of safety glasses. An aluminum bubble level. Total cost? About USD 100! All I wanted was a “hole”! I went back home and with my hammer and a small nail to make two “holes” and hung the picture.

The message of this story. Your competition is sometimes not “elegant” or “fancy” or “techie.” If your customer is only challenged infrequently with the problem your “widget” is solving, and it costs lots of money, they’ll stick with a simpler “competitive” solution. Proven, simple and cheap often ” win the day.”

Conclusion

I hope this article, Startup Competitors – Never Say – I Have No Competition, has convinced you that regardless of how “awesome” your widget or solution is, you “always” have competition. The analysis that you will go through by just writing down what the competing solutions are will be eye-opening.

When you’re thinking of starting a business, writing down the competing solutions from your Startup Competitors is where you must start. Then for each competing solution, write down next to them a list of providers and prices. Then look at the list and be honest with yourself about the “value” of “your solution.” How much cheaper is it? How many “man-hours” does it save? Your answer to these questions often might tell you news you don’t want to face. But, it is better to face it down and go back to the drawing board, than to waste time and money chasing the wrong horse.