🔍 How discouraged should you be by competitors?
3 Strategies for Building Competitively in a Crowded Market
What if, a few months in, you discover someone else was building almost the exact same idea for the same market? Or, you have a super cool idea, but it’s a very competitive market? Is that the signal to give in, pivot or not start at all? Not always…
See, you always need competitors in business – look at Microsoft and Apple, they looked practically identical on paper when they were founded in ‘75/’76. And today? Worlds apart, and no one would insist on having just one or the other. We want, and need, both!
Closer to home, no one would have ever doubted the absolute dominance of SA’s Big Four banks, until Capitec came along and smashed it out of the park, claiming 1 in 3 South Africans’ business in the process.
So how do you build competitively?
- Make market analysis key in your concept validation – Before you build, make a list of your competitors, how many customers they have, how much funding they raised, their market and value proposition – every bit of info you can. Do it like Sabri Suby does his Halo market research in his book Sell Like Crazy.
- Get your competitive advantage – Now ask yourself: What are they NOT doing or what can I do better/differently? If you actually check what people say in their Google ratings and comments on a competitor’s socials, you’ll quickly pick up what they’re getting wrong and right. If you can turn that around and make it part of your offer and guarantee, you have a unique value proposition – everyone else does X, we do Y, and that’s why we’re better…
- Put it front and centre – Marketing is a lot easier if you have a single clear and simple offer with built-in risk reversal. Bank fees used to be through the roof in SA until Capitec crashed onto the scene in 2001 with one simple promise – the lowest bank fees. (Everyone else has since jumped on that bandwagon, but that’s how they got started). Put your offer right at the top of your website, make it your meta title, and make it strong enough to be the hook of every ad.
Finally, we love to feature local startups doing interesting things! If you are one of them, let us know by hitting reply…