Don’t forget your homework!

I guess it's not just kids that have to be reminded to do their homework…

I recently met with an entrepreneur to go over his business idea. It was based on some interesting technology and I quickly became immersed in helping him think through how to make this into a business. As we started to talk about competition I heard one of the phrases that always hits the alert button – "we don't have any competitors".

The alert sounds at this phrase because it's rarely true for two reasons – it's very rare to come up with something that is brand-spanking new – if it is true, perhaps it's because nobody cares about the problem being solved!

When I got back to the office I fired up the browser, thought about a couple of short descriptions of the core product idea and used them as search terms via Google. Back came a number of hits including some from well-known companies with products that clearly competed with the entrepreneur's idea.

Google is not the start and end all of diligence and research into a company but it's certainly a fast and simple way to see what else is in the same or similar space.

So, before pitching to a VC or trying to raise money from friends/angel investors, use the resources available and drill down into the space you are about to attack. At the least it will save time and avoid a credibility hit.

So remember…

Don't forget your homework!

 

Comments

[Jason Vu]

Agreed, search extensively to find out where you can stand.