#AskPS
Abhinav Sankar .

What to do when you find an existing direct competitor for your business?πŸ€”πŸ€”

Suppose that you've been working on a business idea for the past month. You really do believe in the idea and know there is a market for it.

You researched competitors at the beginning, and find out that there is no direct competition that exists in the market but after giving some weeks into the project you found something that does almost exactly what you are trying to do.😟😟

Not completely identical, but close enough to make you throw your hands in the air and ask yourself if it's still worth pursuing!

When you run into a situation like this, which I'm sure is fairly common, how do you gauge whether or not to move forward? Or to abort entirely?

Originally Posted Here
19 Comments

Vishal Dahiya

I have been facing that first hand with Surprise Planners.

We've been in business for 5 years, but for every new offering or pivot we have based on the trends, like marriage proposals or bespoke romantic events, there's someone or the other trying to do the same thing.

In fact, I am seeing a couple of brands exactly replicating our website and visual content.

But then, our experience comes into picture. And with a country as big as ours plus additionally having NRIs as our target audience, I guess 1000 small brands at the least can have a share of the market ;)

(Unless Reliance decided to enter our industry and acquire all of us) πŸ˜‚

Abhinav Sankar

So is the business working well for you now?

Vishal Dahiya

indeed.
We get enough volume through word of mouth or organic leads from google and insta.

Premnath Borkar

If you really believe in the idea and have done enough research to understand where the industry is heading, then you should continue. OFC, you need to have some more features to differentiate but starting out and getting the initial clients is very important.

Abhinav Sankar

Yes, agree! additional things have to be delivered to stand apart from other companies! How do you maintain that?

Premnath Borkar

firstly try to build the MVP which your target audience will want to have. Once you have few customers, then with their feedback you can asses the new features to be added which kind of solve other revolving issue beside the main issue which you are trying to solve.

Rohit Pind

Simple..

You compete!

But, the markets big. Thr world's big.

Where's the problem?

Gaurav Nainani

Consider it as idea validated and go aggressive!

Abhinav Sankar

Woah! thats sane bro. I had not thought for this. Yes, we get a whole picture if our idea would work or not through others! But still there is a market segmentation!

Shivakumar Valadi

1. Your idea will work

2. The hard work of selling your idea is done... Now you have to sell your company only... Focus on that and build your differentiator

Abhinav Sankar

Agree! staying positive is the key!

Amit Rohra

You can not run at the first sight of competition. What would you do if you launched and then these guys showed up in under a month? Would you have called it a wrap and went home? Of course (hopefully) not! Go compete. Out execute them. Beat them on product. Beat them on pricing. Beat them on features/customer benefits. Beat them on UX. Beat them at sales. Beat them on after sales support. Innovate somewhere/ where needed in the entire customer journey. If all you got is a product that will fill a void/gap that's not good enough. You have to/be willing to execute, compete and do it well.

Arun Babu

Well, you can't run monopoly forever, you might find it for time being. The world is so big, even is India. If things started working well or if there is a demand, one day or the another, you will eventually get a competitor. I built something, enjoyed a monopoly for the first 3 years with a premium price. Since people saw the demand, they started building cheaper alternatives to what I had. It worked well for them, people who are looking for cheaper options find what they need. Big organisations stayed with us though they know cheaper options exist where they lacked quality.

Since you are starting out, I would say continue what you were supposed to do if you find a market fit, opportunity and need. Its good that for you actually to know someone already is selling something because there are people who wanted to buy/use it. Give better product /service and customers will follow, at least that's what I learned from the local Kirana guy, where there are 3-4 ones nearby, I prefer to go to the one which I feel friendly and where they smile because they know you.

Nahush Gulawani

There are so many facets that can be done, I had read somewhere that your aim shouldn't be just to satisfy your customers your aim should be to amaze them!!

Secondly I think as a player in the market you should not do things better than your competitors that's what avg companies think like, you should be doing things that are different and better at the same time!!

And crush your competition like you mean business!! Shouldn't cede an inch!!

There is a famous story of shivaji maharaj about his strategy against Aurangzeb!! Defend 1 fort for 365 days it will take 200 years for Aurangzeb to capture all the forts (which is not possible) 😊😊

Kapil Agarwal

It is great!

Work on exclusivity of your offerings!

Ravindra Patidar

If majority of the market is not being served by the competitor, then there is ample scope for you to innovate and come up with exact fit for what customers want. Even if competitors were big enough, there is still scope to innovate & come up with better solutions. Market is alway big and open to better solutions. Don't worry about it and just go ahead I would say.

Shivam Malhotra

Jitne zyada competitors utna acha :) they only make the market big and the market is big enough for everyone to make money (provided youre offering something of value).Moreover,even if you start an industry today and are able to build one then a lot of people in future would enter the game and start competing with you (they would be in a better position to beat you) because its easier to do well when youve competitors compared to no competitors at all.

Moreover,its a validation of your business idea You dont have to think anymore 'am I right in building a new industry?' because when something is being built from scratch it gives birth to self doubt.

Tik Tok ko hi lelo! They started a new niche and aaj sab aagaye yaha bass wo nahi hai:)in the world of startups,you would hardly come across monopoly.

Naresh Shetti

Competition is a great validation format to confirm that your idea is needed in the market. I will keep the competitor in check and study their steps. I am sure they will do the same.

And business becomes more fun when there is a competitor as per me. πŸ™‚

Sunny R Awasthi

We have been in that situation very relevantly but could easily escape it and never had to stop and look into it only because, the core reason on the story of why you started what you did, obviously not knowing anyone else working on a similar idea or the way. Go back to it, pick up the connecting points, build your story of the brand and your connection keep marketing that, people see another completely different player with a unique style and treat you like one another brand altogether and stop gauging you with your competitor. As soon as you start living your brand's story.

An example in our case was, a local company from Mumbai and then one international giant - Talking on the psychology of consumers and people in general. The more we worked on details of our idea to be reflected in the product/service and added the same values of the stories that we narrate, WE WON! <3

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