Why smart startups love competition
Let me tell you something that most people get completely wrong about startups.
You see, when someone comes up with a new idea, one of the first things they hear is, “hasn’t this been done already?”
And if the answer is yes, suddenly everyone’s attitude changes. People start to think, Well, if someone else is already doing it, your idea must be worthless. And that is complete nonsense.
You don’t hear people telling the guy opening a kebab shop to throw in the towel because there are already a thousand kebab places. You think someone tells a plumber, "Sorry, mate, the S-bend’s already been invented. Better luck next time?"
Of course not. But for some strange reason, people think startups need to be this magical unicorn idea to succeed. Like the only way to win is to be the “first mover.”
That’s not how business works. The truth is, competition should make you smile. And if you’re smart, it’s the biggest advantage you can get. Here’s why.
Why competition is a good thing for your startup
1. Competition proves there’s a market
If other businesses are already solving the problem you want to solve, that’s a good sign. It proves one huge thing: people are paying for that solution.
Your competitors have proven there’s demand. You don’t have to waste your time trying to convince people the problem exists. That’s golden.
You know who wasn't first? Google. Google wasn’t the first search engine. Before them there were others like Yahoo, AltaVista, and even Ask Jeeves.
Google watched them struggle with bloated portals and unfocused services. Instead of trying to outcompete them on every front, Google focused on a cleaner, better search experience. This lean approach helped them dominate.
Facebook wasn’t the first social network either. Myspace and Bebo (remember them?) and a whole lot of others came before. But Facebook perfected the experience and got people to use their real identities and make real connections.
And let's pay out respects for BlackBerry—once the market leader in smartphones, they failed to adapt when Apple introduced the iPhone, which redefined the entire industry.
It wasn’t Google's, or Apple's or Facebook’s ability to invent a new market that made them successful. It was their ability to execute better than anyone else that set them apart.
They learned from the mistakes and missteps of those who came before them. You don’t need to invent the wheel. You just need to make it roll smoother, faster, and further.
2. Competition helps you learn faster
Here’s another thing nobody tells you—your competition is doing the heavy lifting for you.
Every marketing test, every failed launch, every product tweak—they’re giving you a masterclass in what works and what doesn’t. All you have to do is watch and learn.
Think about advertising. Look where they’re putting their dollars. If they’re advertising on certain websites, or using specific platforms, that’s a clue for you. Want to know which customer base to target? See who’s responding to their offers.
Even when it comes to super-specific marketing activity, like SEO backlinks, competitors can show you what's achievable. You don’t need to spend months reaching out to random sites, you can look at who’s linking to them and build those same relationships.
When Amazon was building its empire, it closely monitored competitors like Barnes & Noble and Borders to learn where they were failing in the transition from brick-and-mortar to e-commerce.
Amazon quickly adapted and took advantage of the gaps left by these companies.
They saw Barnes & Noble struggling with inventory management and customer experience in online spaces. This allowed Amazon to refine its logistics and customer service approach early on, leading to their dominance of the market.
When you can see where your competitor struggles, it's like getting the cheat sheet for the final exam.
3. Competition builds awareness for you
Here’s one more for you. Competitors are actually building awareness for YOUR product.
One of the hardest things about starting from scratch is making people aware of your product. It’s expensive, time-consuming, and slow.
But if you have competitors in the space, they’re already doing some of this for you. They’ve put in the effort to educate the market about the problem and solution. You benefit from that existing awareness.
And then you get to walk in and say, “Here’s a better solution.”
In the early days of Uber, they weren’t the first to attempt taxis by app. There were other companies in the market trying to solve the same problem for years. But Uber found a way to make booking and tracking smoother—better app, better execution.
The awareness was already there. They just had to tap into it and out-execute.
You don’t need to be a ‘first mover’
Everyone loves the idea of being the first mover, like it’s a golden ticket.
But history shows that first movers often fail. What really matters isn’t having a completely original idea—it’s how well you execute it.
The first through the door takes all the arrows. They spend time on ideas and money on proving the market. The smart companies? They come later, dodge the arrows, and build something better.
Timing often plays a big role in success. Take Netflix, for example.
Netflix didn’t invent video streaming—companies like RealNetworks had attempted it before—but they entered the market at the right time, leveraging improving internet speeds and a growing demand for digital content.
By executing better at the right time, Netflix outpaced its competitors and reshaped the entire entertainment industry.
Facebook wasn’t first, but they outlasted everyone by being better. Google is the same story. They saw what the market wanted and delivered it in a way nobody else could.
If you’re too busy figuring out the basics, you won’t have time to focus on building unique advantages that could set you apart.
Final thoughts
The myth of unique startup ideas has been around for a long time, but it’s just that—a myth.
Having competition is not a sign that your idea is doomed. It’s actually a good thing. It means there’s already demand, awareness, and market validation.
The real challenge is not in coming up with a one-of-a-kind idea, but in executing better than anyone else.
So stop worrying about being the first mover. Focus on being the best mover. That’s what separates the companies that make it from the ones that don’t.
