Dear SaaStr: What Should I Do When VCs Ask About The Competition?
Embrace it. This is your chance to shine.
Not Truly Great Founders:
- Hide from the competition and an accurate description of the competition
- Don’t actually know the competition
- Don’t actually know the competition that well
- Say only negative things about the competition
- Say things about the competition that aren’t 100% correct
- Don’t really know the “10x Features” that help them beat the competition
But The Very Best Founders:
- Know the Competition Cold
- Know where and when they win, and when they don’t
- Know why they will win more and more over time
- Know the “10x Features” they have today to win — and the top 3–5 ones they plan on building to win even more
- Respect the competition
Embrace it. VCs know there is competition in every segment, category and industry.
And that new startups disrupt every segment, category and industry, as well. The Best Founders embraced competition and know it cold. And know how to beat it.
In fact, I always do a deep dive here with every founder I meet with. I love to hear how they think about a competitor or two, especially a much bigger ones. The best ones blow you away with their answers. The rest … stumble.
(win image from here)