Section 5: THE COMPETITION
There is always competition. If no company offers a product exactly like yours, then, at the very least, the status quo is the competition.
Provide a profile of all the significant competing companies, describing their technologies/products, business model, pricing, and current customers. Explain why those companies are successful or not successful, and why you can do better in either case. Do not be too quick to point out only their weaknesses; you will ultimately have to prove that a company like yours can succeed, and demonstrating that a competitor is highly successful, yet will not exclude you from also obtaining a significant share of the market, can be an effective argument in your favor. Pioneers are also guinea pigs, so avoid painting your startup as being too innovative in its business model, technology, or target markets.
- Who are the competitors?
- How is your product better?
- If there are no competitors, why have other companies not pursued your target market?
- Why would a customer purchase your product?
- How will competitors respond to your entering the market and how will you respond in turn?