12 Ways For A Tech Startup To Survive In A Competitive Industry

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Forbes Technology Council


As a startup, the tech industry is one of the hardest to break into. The market is overflowing with hopeful entrepreneurs aiming to be the next big thing, but if you're offering the same solutions to the same customers as everyone else, you won't last very long.

The good news is that there's always room for new startups that know how to carve out a niche and differentiate themselves from their competitors. We asked members of Forbes Technology Council to offer their advice for tech startups that are just getting started in the industry. Here are their best answers:

1. Make Sure Your Product Is Something You Would Use 

Would you use your product or service on a regular basis? If not, your users probably won't either. No matter how great the idea sounds, you need people using it. If you are a regular user, so many things become easier: highlighting the best features in marketing materials, getting ideas for improvement, creating motivation to work, etc. - Matthew Kolb, Class Finders

2. Educate Your Target Market With A Clear, Simple Message 

The more competitive the industry, the more options your target market will have, and therefore the more information they'll have to review on each option to choose a vendor. In such situations, all else being equal, prospects will gravitate toward the vendor that makes things clearer and easier. So, clarify, simplify and educate, and you'll win their attention, trust and, ultimately, business. - Simon Smith, BenchSci

3. Reconsider Whether You Should Enter A Highly Competitive Market 

I'd say go find something else that hasn't been done rather than to enter a competitive environment. Build out something that hasn't been done before. You'll get noticed faster and most likely attract a much larger audience from the beginning rather than fight against the existing forces. - Chalmers Brown, Due

4. Find Your Unfair Advantage Over Your Bigger Competitors 

When a startup enters into a competitive industry, the cards are stacked against them. They might not be able to match the resources or the experience of the incumbents. So the startups better have an unfair advantage in their favor. It can either be a completely new business model (Uber, Airbnb, Dollar Shave Club), technology (Google in early days, SpaceX, Tesla) or user experience (Nest). - Anand Prakash, GrailAI

5. Make Your Unit Economics Work 

For those coming from big companies, particularly in Silicon Valley, it’s easy to overemphasize the value of product and user experience and undervalue getting to profitability. While this worked for Instagram, it hasn’t worked for Twitter or the 90% of startups that continue to fail. Unless you’re hoping to get lucky, make a product that has solid unit economics baked in early. - David Murray, Doctor.com

6. Get The Startup Basics Right 

A startup in a competitive industry has to be able to demonstrate the ability to create a brand, show ability to scale in a short time, have the team to execute and focus on winning customers. - Naresh Soni, Tsunami ARVR

7. Don’t Spend Too Much Time Studying The Competition 

Competitive research is part of any company’s business development strategy, but some spend too much valuable time studying the competition versus creating/prototyping new products. When a company spends extended periods of time studying the competition, it starts producing like the competition. This leads to zero innovation and originality, which doesn’t aid in success or value for clients. - Scott Stiner, UM Technologies

8. Identify Your Differentiators And Craft A Narrative Around Them 

Identify your differentiators, build a strong story around them and always reference it when making decisions. Whether for marketing, product or recruitment, each decision should further strengthen that story. Don’t be afraid to re-evaluate and modify the story, but consistently referring back to it will help you establish a clear focus and distinguish yourself from the competition. - Zohar Dayan, Wibbitz

9. See The Competition As Collaborators 

Educate your team and yourself about your industry immediately and become an expert in that field. Solve a meaningful problem that creates real value in the world. Build meaningful relationships with not only customers but with competitors in your industry, choosing not to see them as competition but as possible partners and collaborators. - Alexandro Pando, Xyrupt

10. Know Your Brand, Product And Audience Inside And Out 

No matter what the unique service, product or strategy is that a startup is bringing to market, make sure you understand what your providing, what your customers want and how you are going to be able to not only disrupt an existing market but also scale the platform and deliver high quality as you gain success, which can come much quicker than you had planned for. Understand why, how and when. - Mark Butler, Qualys.com

11. Make Sure Your Market Exists 

First, research the market right. You might think you’ve got the best idea, but if there’s no market for it, you’d waste years working on a product nobody needs to use. Make sure you have a clear vision from the start, even before you have a ready-to-use solution. When you have a specific purpose, you and your team will be able to keep the focus on the idea during tough periods without wandering. - Ivailo Nikolov, SiteGround

12. Identify Your Specific Clients And Their Needs 

There are only two ways for startups to succeed: Either provide a better service or offer it for less money. If you enter a competitive industry, it is probably already working on very thin margins, so I recommend focusing on better service. This is hard to do unless you focus on specific type/size of clients and attend to their needs. There are always those clients who need special care. - Dzenis Softic, Clickbooth 

