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Element 6. Bad Competition > Relevance—Why Add This Item?

Relevance—Why Add This Item?

In every sense of the word, this competition is “bad.” It means that your success must come at the expense of an enterprise that has the resources, including a robust core competence (highly skilled work force and well-oriented organization), to hamper your successful launch. Sadly, many new entrepreneurs believe they have no competition when in truth they do. Note however that if you have some critical “unfair” advantages,[1] particularly if a federal license is involved, it can make you stronger than your competition. It could pay dividends to be persistent and keep grooming and toying with your idea until it reaches a passing score.

[1] This is not a hall pass for you to do something evil or unethical. “Unfair” will be the term used by your opponent when they cannot do much about the advantage you have created. They will whine about it being unfair. It is so important that it is the subject of Element 32 and is weighted the max, a 3.

The implications of a strong competitor can be profound. Your customer base is in doubt, your vendors can be unreliable, the cost of capital can be elevated, distribution can be spotty, the best law firms and advisors can be on the competitor’s payroll so that they cannot work for you, seed capital can vanish, and the risks can be elevated. This could be a formula for doom.


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