Market research

So you have a great idea, huh? Good start. I dont know how many times I've heard this... "I have an idea for XYZ - and it's the first of it's kind in the world! No one has done it before!" That might be true, or it may be that you just haven't searched hard enough. You'll find that when courting investors, they want a "No BS" approach on who your competitors are and how you will beat them at their own game. If you tell the investors you have absolutely no competitors - they're likely to giggle and have you move on.

Think about it... Google got funding while having a heap of competitors. Yahoo, MSN, Web Crawler, Ask.com, etc. Although Google was able to get their funding quite easily (I only wish the world were that simple), you can rest assured they knew their competition. Yes, Google is quite the example, but in all reality - they came from nothing, and that's what makes them my prime example for most things.

The point here is that you need to do your research. I mean, really do it! If you don't think you have a direct competitor, you'd better evaluate who your close competitors are. If you are making XYZ widgets, and the closest you can find are XY widgets, then rip apart their business model, price structure, background information, management information and personnel, public records, etc. Find out how they operate, who they have working for them, why they sell what they sell, and then beat them.

I am very competitive, and I heartily believe that business is war. The companies that stay on top are those that crush their competition, utilize their leverage (whether it be size, monetary assets, etc), and overtake their competitors. Everyone loves to hate Walmart. Why? Because they run little mom and pop shops out of business. It's unfortunate, but it's business. Unless mom and pop can compete with inventory and prices, they're usually doomed. Walmart just does it bigger, better, and cheaper than most other companies... that's how the world works, and that's where the small guys get stomped on.

If you think for one second that Walmart, Google, Yahoo, Amazon, Zappos, or any other major player does not keep tabs on their competitors - you are terribly wrong. Even the big boys need to know who is sipping from their Kool Aid. If you sleep, you slip. Take it as a lesson to keep on your toes and know and understand your market and competitors. If you don't... well, you should just close the door and turn off the lights, because it's officially game over.