You need to determine if your idea is feasible.
Entrepreneurs are messy. We are just mad. If you do anything else in your life, you have a 95% chance of failure. And yet we waste our lives, millions of dollars, to have a five percent chance of success.
It is important that you do not become too anxious to bring an idea to market. You are serious about it. You think it may be massive, and it may be, but at the risk of bursting your bubble, the chances that only you would have thought of this idea? Almost zero.
Although your idea is brilliant, you must know who else had this idea, who tried, who failed, who succeeded, and why.
Find out who’s tried before you, who’s won, and who’s lost.
You can learn from others’ mistakes by performing deep competitive analysis. Why did the other business fail? Were they early? Were they too late? Were their marketing methods polished?
The only way to succeed here is by looking at the ways others have achieved before you.
Entrepreneurs have an instinct to think they are unusual and unique. That is our instinct as humans. You need to battle the desire to believe how special you are, and actually go out and do the opposite, find some other organization that tells you that you are actually not unique.
A well thought out roadmap is what impresses investors.
Your target audience would thank you for your kind of initiative. However, you might respond to the question about competition by saying you do not have any competitors. If investors hear this they might literally panic. If no one else is doing what you are doing, there is possibly no business.
Showing your future investor how you mapped out 50 to a 100 other companies in your room is the best thing you can do when asked about your rivals.
It is the most efficient way to determine when to pivot.
It is the most fundamental justification to do a detailed competitive analysis. A successful entrepreneur must know when to pivot and when to leave.
If you attempt to do something with little consideration of its possible success, and then learn that someone else did it earlier and failed, it may be time to rethink your next step.
If after doing some research you find that there are a few successful companies that have taken control of the room, this could be something to take into consideration.
If someone has successfully executed on your idea or if others have, no one is telling you it that is a reason to give up. But if you don’t even know who you are up against, then your chances of success just decreased dramatically.
Invest in competitive research before spending time and money on your idea.