Know Your Competitors - 3 Questions You Should Ask Yourself Before Starting Your Business
When it comes to entrepreneurship and business, I don't like to speak in an aggressive and hostile way as many tend to do.
That shark mentality, dogs eating dogs, and the biggest fish thing. I really don't see it necessary to see everything as if it were a war. You can focus on your startup, work hard, and be competitive in a healthy way.
However, I am aware that you cannot be a best friend to everyone in the market. There will always be someone who will be your competition and will not be interested in having good relationships with you.
That's okay; it's part of the game.
While I don't encourage anyone to sabotage other's projects or play dirty, you should study your competition.
We often think we have a revolutionary idea or a unique business model, but it turns out that it already exists. And not only that, there are hundreds of similar options on the market.
That's what happens when you don't study the field before starting a business.
Therefore, you should ask yourself these 3 questions if you are thinking of starting a startup.
1. Who is my biggest competitor?
Always, when starting a business, you must ask yourself who is the maximum representative of the solution you offer.
Of course, there are levels. But you should always see the biggest fish in the pond first. If you plan to open a coffee shop, the maximum competitor is Starbucks, for example. Although an independent coffee shop is part of another level of business, looking at the above will help you get an idea.
What do they offer? How do you solve the needs of the markup? What did they do differently that brought them to that level?
It's not about going after McDonald's, Amazon, or Tesla; it's about getting to know the top of the food chain.
2. What makes my project different?
Don't worry about not having a 100% original idea since that practically does not exist. Everything is sold; only known ideas appear with a twist.
When you enter the market, you should know that consumers will have dozens of options to choose from. Among all of them, you will be. What does your business have that differentiates you from the rest?
It can be the image, a policy, or the way to market your brand.
Spotify is not that different from Deezer or Tidal; it is just the option that we know more about. Its differential factor was how it was promoted as a brand.
If your product doesn't look at least one different, it will be just one more option on the counter.
3. Can the competition block my product?
You should always think that in the market, you will find an Instagram.
A competitor who can simply copy or adapt one of your offers and appropriate the success of it.
Why call it "an Instagram?"
When Vine reached worldwide popularity, Instagram included 15-second videos.
When Snapchat was at the top of the social media market, Instagram added the stories.
Now that TikTok has gained worldwide growth, Instagram added Reels.
And the worst? it worked for them. So ask yourself, can the competition just copy something from my market model and make it better?
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