Forget Competition, Focus on Your Proposition

Founders of early-stage startups will often find themselves in a wide-open space with no competition in sight. Most would assume that this is a good thing because nothing is stopping you from conquering the market. But there is another side to that coin.

A lack of competition could also mean that nobody has validated the market. This is a sign that there isn’t enough of a need for your offering. In fact, more competitors mean there is a bigger market available. This means more people need what you have, giving you more potential customers to win over.

Of course, even if you find yourself in a crowded space, that doesn’t mean you should get hung up on your competitors. Obviously, you have to find a way to be better than your competitors, but you do this by looking inward. During the early stages, your focus should be on your proposition, not your competition.

Think about what exactly you are offering potential customers? This isn’t just the technology that you think makes you a better option than incumbents in that space. It’s everything that you are giving customers, including the product, the sales process, documentation, support, and any bonuses that you can offer as an agile startup. Perhaps offering time with the founder is an example of a bonus offering that’s part of your proposition.

In short, your proposition is everything you can offer to address a pain point for your customers. Making this proposition as comprehensive and appealing as possible is what will help you win market share. Make sure you offer customers as much as possible and that they know exactly what you bring to the table.

Down the line, there will be a time to worry about competitors. But doing so early is just a distraction that you don’t need. For startups, the key is to focus on what you can do and the proposition you can offer. If you don’t master that first, your competition won’t matter..

Is your startup at a crossroads, and you aren’t sure what comes next? The Midstage Institute offers a Crossroads package for these exact situations. We assess your situation, plot different options, and create a 12-month execution plan to take you where you want to be.