Once in a while I meet entrepreneurs with amazing ideas but they don’t know how they could compete with even the largest enterprises.
I started my first company from scratch with $20,000 and needed to compete with 3 other businesses, each $200 Million to $1 Billion in revenue – 10 years later we were market leader on a global scale ($5B in revenue)
My second company was a little more different
I started my third company right after the bubble burst and competed with two other competitors who had $70 Million and $68 Million cash in the bank from pre bubble rounds – I started with $500,000 – 5 years later we were close to acquire one but let go because the due diligence made clear there is nothing we could gain – being the market leader already.
Here is how we compete:
1) In each case we developed a disruptive business model. We completely went of the beaten path and redefined sales channels or we made payments in very different ways, provided transparency were was none, service integration in the pricing and so forth. It was the market that forced the competition to follow us and compete with us – or loose it.
2) I never competed based on technology, product functions or any of those short term win or loose features. I learned: “The best product never wins”. However we did have great technology because we had great engineers – yet it was not the winning factor in the end.
3) Business is done between people. I knew I can win more customers when I have a nicer team – and I always had a stellar team. :)
In retrospect: all big winners won with a superior business model and amazing teams.
Obviously I don’t know anything about your business and therefor it is hard to make more specific suggestions – but look at your business model and your team before you even spend a millisecond on your product when it comes to competing for market share.
A good read to make sure you can handle such a problem is the question to find great founders