I was recently being pitched by a smart team of guys who are building an interesting business in the digital music space. The team has great domain expertise and plenty of credibility as entrepreneurs who have built a number of related businesses in the past. They were doing a nice job of selling the opportunity . . . until they got to the competition slide.
I have noticed that often times when I am pitched on a business, the competition slide is treated as, at best, a necessary evil. It's in there because it is "supposed" to be, but not much more. Sure, I've seen some really creative ways entrepreneurs have found to place themselves alone in the upper right corner of a 4X4 matrix. And I've heard -- perhaps more often than is merited by reality -- that there isn't any competition. But I rarely get a thorough assessment of how others are approaching the opportunity and how the pitching team is meaningfully differentiated.
So why should you focus on the competition? Isn't that just unnecessarily opening yourself up to questions about your business that may not otherwise be raised? Shouldn't you focus on your own business and its powerful attributes and not on the competition? Sure, the glories of your own product and strategy should be the centerpiece of your presentation, but the competition slide gives you a unique opportunity to show how smart you really are about the market you are attacking. Great entrepreneurs eat and breath the space in which they are building their business. And they don't just internalize their own market strategy, they watch every move the competition makes.
How do you know a great entrepreneur when you meet one? Great entrepreneurs would do a better job running the competition than their competitors are doing. They can tell you not only the ways in which their strategy is better than their competitors', but also the ways in which their competitors have created the very opportunity that they are exploiting. There is nothing more credibility building during a presentation than doing a great job of answering questions about the competition, and nothing more damning than doing a bad job.
My advice to any entrepreneur -- learn as much as possible about the competition. Not just because you'll do a better job of pitching your company, but because you'll do a better job of running your company. And, in the end, that is what ultimately matters the most.
Totally agree with this : "Great entrepreneurs would do a better job running the competition than their competitors are doing" ... and I would say that most entrepreneurs should start their business specifically because they think that their competitor have either a bad vision or a bad execution of it!
Posted by: julien.genestoux.myopenid.com | 06/19/2008 at 08:05 AM
By the way, commenting on you blog is a real pain : Yahoo's OpenId is not suported and you should definetely add another way of login!
Posted by: julien.genestoux.myopenid.com | 06/19/2008 at 08:09 AM
Very valid point.
The flip side of this is that you should be careful in reading too much, and reacting too quickly to competitors that, like you, have yet to launch and operating "in stealth".
At that phase there are bound to be companies that sound very similar (and might actually be) but it's usually a massive waste of time and a dangerous strategy to try to position against them. More on this at: http://orenlosophy.wordpress.com/2008/05/22/competitive-analysis-early-stage-startups/
I've always found that when pitching your business you can acknowledge there are other teams that appear to be doing something similar but it's too early to worry about them (it's important to acknowledge it though)
Posted by: oren | 06/19/2008 at 04:48 PM
Great point.
When I see people who haven't done that, I suspect hubris or fear. To keep a watchful eye on your competition takes both humility and bravery, both useful qualities for building something great. Not that a little arrogance doesn't come in handy, too.
Posted by: William Pietri | 06/19/2008 at 05:48 PM
Julien et al... I just enabled Yahoo OpenId (as well as wordpress.com openId) log in to VentureBlog. Comment away!
Posted by: http://www.flickr.com/photos/aka | 06/20/2008 at 07:30 AM
Totally agree.
If you know your competition,
you will go to the left most lane in the freeway and will overtake them.
If you don't know your competition,
you will go to the right most lane in the freeway and will take an exit.
-Uday.
Posted by: Uday Subbarayan | 06/25/2008 at 07:12 PM
This is a very timely article. My partner and I just met with a patent lawyer here in Los Angeles and discussed both defensive and offensive strategies to employ in protecting our intellectual property. Being that we are both from an engineering background and fairly new at the game we always concentrated on learning more about how to create our patents and how to protect our technology.
Today, we just got introduced to defensive strategies where we have to carefully analyze the patents of our competitors (or the state of the art) and see what the claims are so we avoid future infringements as well as gain another competitive edge over them from a defensive perspective.
I definitely think that competitors although mostly new themselves can teach you about your business and help you improve how you think about problems. This is not to say you should not be innovative technologically (offensive) as that is the basis of successful disruptive start-ups
Posted by: https://me.yahoo.com/a/1U9xwAADyO2zI1Szv9Ozf5MWZw.S#2dfc8 | 06/28/2008 at 06:08 PM
It is so true that in every meeting with companies seeking to raise capital, they really try to avoid this section, or provide very poor explanations as to how they are unique.
These tips should be given to every company, before they embark on raising capital.
Posted by: stevet.myopenid.com | 07/04/2008 at 04:50 AM
Dave,
While it is important to keep tabs on every move from the competition, it becomes extremely hard to track stealth mode startups until you come across them during conversation with a customer / partner.
For example, I could have never thought of a mobile advertising company that does device-based ad insertion by interfacing with the mobile OS through a proprietary chip! Every enterpreneur tries to position his / her company uniquely and I concur that the most important skillset needed from a founder is to understand the value-proposition clearly and be able to defend it while talking about competition, may be it a Google or a garage-based startup.
Cheers,
Srini (GoldSpot Media)
Posted by: https://me.yahoo.com/a/gJnaSj4bhu3Vq3I9UkdWv8KW65patKwbHitWj5gt#fc828 | 07/06/2008 at 08:25 PM
Great pointer David.
Another bit of advice to young start-ups...financial forecast.
Why is that an overwhelming majority of financial forecasts predict profitability in the 4th quarter of the calendar year? is there something magical in the start-up universe?
Posted by: https://me.yahoo.com/a/hYbD7DllsZR2fpE9QJSCZxG2FM0-#75d69 | 07/11/2008 at 03:44 PM
Fascinating post. I like your point about how entrepreneurs can really emphasize their intelligence and abilities to "out-think" their competition by really portraying their understanding of a market to vc's. The question becomes... what are the steps to identifying your competitive landscape. Yes, products and services are obviously focal points of determining this. I think one thing that is overlooked is the ideal client profile. Which companies target the same client profile that you do? This includes looking at the demographic characteristics of an ideal client as well as their pyschographic characteristics. Here is more information about what I'm talking about. Great post though! www.readtheanswer.com/index.php?RTA=web2
Posted by: https://me.yahoo.com/a/hUrZaasa0ZB6ieFQ6D.6aHcLaNVP4Lzfpg--#0eb09 | 07/15/2008 at 03:17 PM
I found your site on del.icio.us today and really i feel great using this blog i bookmarked it and will be back to check it out some more later
Posted by: Hostgator | 07/06/2010 at 09:30 AM
Gucci is a famous brand in the world , and is originate from Italy and create by Guccio Gucci. He is a famous designer. His products are popular with most of people . His design are originality and natural. Gucci bags and Gucci outlet are also popular and elegant. You can search for our website : http://www.gucciusaoutlet.com.
Posted by: Gucci handbags | 08/09/2010 at 08:21 PM
Why is that an overwhelming majority of financial forecasts predict profitability in the 4th quarter of the calendar year? is there something magical in the start-up universe?
Posted by: ffxiv gil | 09/12/2010 at 07:05 PM
some aritcles are very good,you said the word about you wants.we should live in our right styles.many times we usually say that u like style,and Air Yeezy I think you will like,too.link my name now to know them.
Posted by: Air Yeezy | 09/27/2010 at 12:05 AM
My fellow Americans , ask not what your country can do for you; ask what you can do for your country . My fellow citizens of the world ; ask not what America will do for you, but what together we can do for the freedom of man .
Posted by: New Balance 574 | 10/13/2010 at 08:24 PM
I like the fact that finally i can read a dogs thoughts. I've always wanted to since i was a kid. lol
I will certainly be reading more....
Posted by: louis vuitton ankle boots | 10/28/2010 at 02:38 AM
Everything comes to him who waits
Posted by: christian louboutin | 11/03/2010 at 07:31 PM
Agree with your point of view
Posted by: supra shoes | 11/05/2010 at 06:51 PM
Was well written
Posted by: supra shoes | 11/05/2010 at 11:44 PM
A friend is, as it were, a second self.
Posted by: new jordans | 11/05/2010 at 11:53 PM
I would really like to produce a one man show about my life.
Posted by: Supra Shoes | 11/10/2010 at 06:36 PM
Existence is often a profound book.Other's notes are not able to exchange your personal understanding.May you unearth and generate a specific thing new in it.
Posted by: nike jordans | 11/10/2010 at 07:47 PM
i love you post
Posted by: taobao agent | 11/10/2010 at 11:37 PM
Blessed be God, the Father of Christ Jesus our Lord, who in Christ has blessed us from heaven with every spiritual blessing.
Posted by: Air Jordan Shoes | 11/11/2010 at 10:34 PM
*Oh I hope you all have a blessed day
Posted by: taobao auction | 11/12/2010 at 03:04 AM
oh, it is great!
Posted by: ghd online | 11/12/2010 at 06:08 AM
I am not going to tell you everything is great with China law, but I will tell you that the examples you give as purporting to show a lack of laws in China may just as likely have been due to the lack of these VCs having drafted good contracts. This seems particularly true of your second example.
Posted by: Jordan Rereo 1 | 11/12/2010 at 05:15 PM
That's not his. Steve's is black*_*
Posted by: air jordan | 11/16/2010 at 04:42 PM
I can imagine TONS of uses for this*_*
Posted by: air jordan | 11/16/2010 at 07:08 PM
I find it difficult to subscribe RSS feeds, bookmark this site anyway I have is a very useful and complete information.
Posted by: nike air max | 11/28/2010 at 07:21 AM
We bless you with the remembrance of beauty.
Posted by: china wholesale store | 12/09/2010 at 06:39 PM
and we can only fly embracing each other.
Posted by: ajf20 | 12/09/2010 at 11:19 PM
and we can only fly embracing each other.
Posted by: ajf20 | 12/09/2010 at 11:24 PM
1.Everyone should have a love.Because love is pure.
Posted by: sikiş | 12/17/2010 at 03:02 AM
Cela a été amusant, j'ai apprécié la lecture de votre blogfest entrée! J'aime de boules de neige - même si je n'ai jamais eu à jouer contre des gens avec des cadeaux! LOL. Je suis d'accord. Les gens ont besoin pour égayer de leur nouvelle pièce grande de l'art. : D
Posted by: jordan 11 space jam | 12/20/2010 at 12:17 AM
be due to the great Sambar Stag. I've, on the other hand, bought puma knives with stag
Posted by: Nike Free Run | 12/22/2010 at 07:08 PM
*Good health, like air, is essential to human beings!*
Posted by: taobao | 12/30/2010 at 11:29 PM
nous allons louer une voiture pour le week-end*_*
Posted by: Taobao buy | 01/03/2011 at 07:49 PM
Um...like the style of your writing.*_*
Posted by: Taobao buy | 01/05/2011 at 07:45 PM
Um...like the style of your writing.*_*
Posted by: Taobao buy | 01/05/2011 at 07:46 PM
Ooh baby, I love that Palenque comp. Great picks Jason!
Posted by: Taobao agent | 01/16/2011 at 06:49 PM
DEKARONデカロン-RMTRMT rmt とはis currently constructing the Kahuku Wind facility located on the island of Oahu in Hawaii. リネージュ2 rmtThe 30-MW facility will feature 12 wind turbines and will generate enough clean energy to power about 7,700 homes each year. アトランティカ RMT RMT is providing engineering, procurement,Atlantica RMT and construction of the civil and electrical infrastructure, rmt ff14including roads, crane walks and pads, turbine foundations, tower erection,aion rmt a 23-kV underground collector system, a 23/46-kV step-up substation, and a 7,000-square-foot operations and maintenance buildingrmt リネージュ2.
Posted by: DEKARONデカロン-RMT | 01/17/2011 at 05:52 PM
rmt ドラゴンネストDefining the site's cost isn't a simple task.We comprehensively evaluate site SEO, website traffic 大航海時代-RMT(quantity, source, geography) and make approximate conclusions about the website's cost.Special attention is paid not only to the current site's cost but to the growth rmt アラド(or decline) dynamic of this or that resource.RMTメイプルストーリー RMT
Posted by: DEKARONデカロン-RMT | 01/19/2011 at 12:56 AM
DEKARONデカロン-RMT of a site.rmt ff11 The cost of a site would be how much it costs to run it. The worth of a site is determined mainly by how much revenue the site is bringing in.信長の野望Online RMT Other factors would include how much traffic the site is bringing in on a monthly basis, email subscribers if any,アラド戦記 rmt rmt ドラゴンネスト メイプルストーリー RMT アラド戦記 rmt rmt アラド rmt ff11 信長の野望Online RMT 大航海時代-RMT DEKARONデカロン-RMT
Posted by: DEKARONデカロン-RMT | 01/19/2011 at 07:05 PM
All I can do is to bump the thread up, and I really learned a lot from our Moderator, and I also have some other viewpoints, maybe we can share it if we have opportunity.
Posted by: oil painting | 01/26/2011 at 05:17 PM
UZAMAX content of minerals and vitamins containing a natural food supplement made bitkielerden. Although there is the content of any chemical product is completely natural, dried vegetable mixture. Just a few months of use, even after cure uzamax'ın will feel the impact.
Posted by: uzamax | 02/05/2011 at 04:51 PM
It gives energy, fatigue
• Diuretic effect allows the excretion of toxins
• Strengthens the immune system protects against disease
• prevents the increase in cholesterol and regulates blood candy
• intestinal parasites is the enemy of good bacteria enhances
• diarrhea (diarrhea), prevents the treatment provides support
• There are positive effects on the skin, smooth appearance
• Skin infections are a positive contribution
Posted by: nar hapı | 02/05/2011 at 04:52 PM
oh my!! i love you so much!!
Thank you so much.
Posted by: rolex watch | 03/06/2011 at 06:01 PM
oh my!! i love you so much!!
Thank you so much.
Posted by: rolex watch | 03/06/2011 at 06:02 PM
oh my!! i love you so much!!
Thank you so much.
Posted by: Christian Louboutin Pumps | 03/06/2011 at 06:06 PM
oh my!! i love you so much!!
Thank you so much.
Posted by: french rosetta stone | 03/06/2011 at 06:08 PM
The words you need by the people you admire, such as the: Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved. College isn't the place to go for ideas. Death is no more than passing from one room into another. But there's a difference for me, you know. Because in that other room I shall be able to see. Everything has its wonders, even darkness and silence, and I learn, whatever state I may be in, therein to be content. Faith is the strength by which a shattered world shall emerge into the light.
Posted by: Cheap Jordan Shoes | 04/13/2011 at 11:27 PM
You can share some of your article, I'm like you write something, really very good! I will continue to focus on
Posted by: Air Yeezy Shoes | 05/04/2011 at 11:52 PM
You can share some of your article, I'm like you write something, really very good! I will continue to focus on
Posted by: Ken Griffey Jr Shoes | 05/04/2011 at 11:56 PM
I will continue to focus on
Posted by: birkenstock outlet | 05/06/2011 at 10:36 PM
Kindness is the language that the deaf can hear and the dumb understand.
Posted by: Air Jordan Retro | 05/11/2011 at 06:57 PM
YES! I finally found this web page! I’ve been looking just for this article for so long!!
Posted by: christian louboutin | 05/13/2011 at 01:08 AM
I read with great interest.Your article looks great! I love it.
Posted by: tiffany and co outlet | 05/18/2011 at 01:48 AM
I must say this is a great article i enjoyed reading it keep the good workI must say this is a great article i enjoyed reading it keep the good workI must say this is a great article i enjoyed reading it keep the good workI must say this is a great article i enjoyed reading it keep the good work.
Posted by: coachusa outlet | 05/23/2011 at 07:23 PM
http://www.christHi, have been looking on Yahoo for that topic and took a long time to finally find a blog that provides the needed infos – and that not in boring way, quite opposite. Rarely to find and the design is cool as well. Maybe just change the link colour to black, but that just besides. Thanks again and I’ll check this blog more often now. Site bookmarked! Thank you so much for sharing it up! Greetziansale2010.com
Posted by: Christian Louboutin Replica | 05/23/2011 at 10:02 PM
Preferably, when you gain knowledge, are you able to mind updating your website with an increase of information? It is very ideal for me.
Posted by: Christian Louboutin shoes | 05/23/2011 at 10:04 PM
Hey, Great website basically a heads up that I was getting instantly sent straight to the homepage if I viewed this internal web page; It looked like a web browser hi-jack or something, I’m not too absolutely certain but imagined you might be informed about it. Take care
Posted by: Cheap Christian Louboutin | 05/23/2011 at 10:06 PM
Very good points you wrote here..Great stuff...I think you've made some truly interesting points.Keep up the good work.
Posted by: christian shoes | 06/01/2011 at 12:01 AM
These information helps me consider some useful things, keep up the good work.
Posted by: jordan 11 | 06/04/2011 at 12:28 AM
Bin. But, not Bin in beating, but his brother by three teens in a small youth beaten. Li Yan and Zhang Bin sitting together is now in tears by a man in his thirties in his arms. Li Yan the man hand
Posted by: birkenstock shoes | 06/10/2011 at 11:58 PM
Great page you have in here. thanks for sharing.
Posted by: cherry | 06/17/2011 at 12:58 AM
isn't she the daughter of bob menendez? a daughter of a dem senator appalled by rubio...big surprise.
still, her father's parents came fleeing batista, missing fidel by several years.
Posted by: authentic air jordan shoes | 06/19/2011 at 05:36 PM
That was my thought,too.
Posted by: mbt online | 06/22/2011 at 04:04 AM
Hello,guys,your blog is really great! I like it.
Posted by: nike shox | 06/24/2011 at 10:14 PM
Thanks again and I’ll check this blog more often now. Site bookmarked! Thank you so much for sharing it up!
Posted by: Cheap NFL Jerseys | 07/02/2011 at 01:02 AM
Good stuff as per usual, thanks. I do hope this kind of thing gets more exposure.
Posted by: GHD Iron | 07/06/2011 at 06:46 AM
thanks for your article,like your blog very much,well done
Posted by: jimmy choo online | 07/06/2011 at 08:28 PM
ery good points you wrote here..Great stuff...I think you've made some truly interesting points.Keep up the good work.
Posted by: Christian Louboutin shoes | 07/11/2011 at 02:33 AM
I think you've made some truly interesting points.Keep up the good work.
Posted by: cheap sunglasses | 07/11/2011 at 06:31 AM
I am excited about learning way more than what I have already taught myself. Thank you!
Posted by: Abercrombie and Fitch UK | 07/12/2011 at 06:00 PM
Nice blog and the article are simply superb. The article posted was very informative and useful. You people are doing a great job. Keep going.
Posted by: cheap nike air max 2009 for sale | 07/12/2011 at 08:36 PM
thsi is nice post
Posted by: Cheap Beats By Dre | 07/13/2011 at 12:50 AM
Only an injunction)0f the lessening Can avoid that problem. Defendant: 1)Our name accurately reflected the first BaFfle of the owner of the store.andwe used the word“secret”as a kind of inside ioke because we wanted to keep the new business a secret from a former boss at a competing store.
Posted by: Cheap Onitsuka Tiger | 07/13/2011 at 08:30 PM
The nomination of the winner depends on the capability and spirit of the personality to finish the race.I like the post very much as it contain informative in knowledge.I like pics of Chelsea shares of the beauty of running in Madison, Wisconsin.I want to congratulate the winner for the nomination race.I want to know suggestion from others.
Posted by: Vibram Five Fingers | 07/13/2011 at 08:34 PM
i come here first time. You can share some of your article, I'm like you write something, really very good! I will continue to focus on
Posted by: Air Max Shoes | 07/13/2011 at 08:38 PM
Woods said in an interview after the game, "I have many good together, putting the final round is also good Isle Bay and the Isle golf course is divided into two courses Arirang
Posted by: longchamp outlet | 07/15/2011 at 04:03 AM
Thank you for your article. It's worth to read.
Posted by: jimmy choo outlet | 07/17/2011 at 06:51 PM
ALWAYS HAVE A DREAM Forget about the days when it's been cloudy, But don't forget your hours in the sun. Forget about the times you've been defeated, But don't forget the victories you've won. Forget about the misfortunes you've encountered, But don't forget the times your luck has turned. Forget about the days when you've been lonely, But don't forget the friendly smiles you've seen. Forget about the plans that didn't seem to work out right, But don't forget to always have a dream.
Posted by: ED Hardy T shirts | 07/23/2011 at 02:36 AM
Thanks very much, I have learned a lot from your post. Well done, really! also have a good train at http://www.honest123.com/
Posted by: mbt shoes online | 08/01/2011 at 07:53 AM
Non posso ora prendere parte alla discussione - molto occupato. Molto presto, assicurarsi che il proprio parere.
Posted by: bondeleignowl | 08/01/2011 at 01:29 PM
Happy to see your blog as it is just what I’ve looking for and excited to read all the posts. I am looking forward to another great article from you
Posted by: ken griffey shoes | 08/01/2011 at 08:28 PM
Indefensible, for sure, yet some parents consider spreading hurtfulness a protected right and are going to court to make their case.
Posted by: mbt zapatos | 08/02/2011 at 07:09 PM
wo yao shou lu
Posted by: abercrombie and fitch uk sale | 08/02/2011 at 07:13 PM
great ! nice blog, It's worth to read.thank you!
Posted by: hollister abercrombie | 08/03/2011 at 08:37 PM
These are all inter-related facets and fundamental to one another. Much of this, in the end, is rooted in tradition, as tradition is another means of expression and symbolism.
Posted by: UGG Boots | 08/07/2011 at 06:45 PM
tradition, as tradition is another means of expression and symbolism.
Posted by: Cheap Beats By Dre | 08/07/2011 at 11:02 PM
It is actually truly beneficial to read your net. The information amongst your weblog is strictly superb, and your blog system is Basic type, It isn't dazzied. So superb.
Posted by: Herve Leger Dress | 08/09/2011 at 06:26 AM
Most tourists to Europe tend to visit cities and use the available train system, buses, taxis, or they bicycle or walk. So it may seem that the residents of these cities don't need cars. And they probably don't. I also wouldn't need a car if I lived and worked in SF, NY, Washington DC, or Philadelphia. But all Europeans don't live in cities. I have friends who live outside of Brussels and they have to commute on a jam-packed freeway just like I do. Their parents live in small French towns and while there are trains to get there from Paris, they still have to drive to the station to pick up guests. It's too far to walk and the only other source of transportation is a taxi. Just like in the US.
Posted by: nike shox shoes outlet | 08/10/2011 at 08:22 PM
Apart from this, the Backstage location in the coach outlet
program helps you in controlling all your major Outlook account settings in the single place. Hence, you can go on adding new email accounts. Moreover, is versatile enough to prevent you from messing up like sending message to the inappropriate recipients. It is capable of monitoring the wrong folks or who you are addressing your messages to and at the same time warns you against the mess. For instance, if you are working for some organization and willing to send a message to the members of the organization, but by mistake selected an outsider, Microsoft Outlook makes you alert of sending to the wrong recipient. Thus,
is the manager of your emailing, and the program is indeed a genius personal scheduler. You can obtain outlook 2010 online easily and instantly.
Posted by: rong | 08/10/2011 at 11:17 PM
http://www.oakleyssunglasscheap.com
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post.
Posted by: Replica oakleys | 08/12/2011 at 11:06 PM
I have noticed that often times when I am pitched on a business, the competition slide is treated as, at best, a necessary evil. It's in there because it is "supposed" to be, but not much more. Sure, I've seen some really creative ways entrepreneurs have found to place themselves alone in the upper right corner of a 4X4 matrix. And I've heard -- perhaps more often than is merited by reality -- that there isn't any competition.
Posted by: ray ban sunglasses | 08/16/2011 at 01:45 AM
Indefensible, for sure, yet some parents consider spreading hurtfulness a protected right and are going to court to make their case
Posted by: best replica watches | 08/16/2011 at 10:41 PM
Let me great inspiration, thanks
Posted by: Coach Handbags | 08/18/2011 at 08:05 PM
http://www.calvinklein-calvinklein.com
Posted by: calvinklein | 08/19/2011 at 12:41 AM