In Episode 4 we had put out a framework for ‘How to Evaluate a Startup’. Episodes 6 and 7 discussed ‘How to Evaluate the Market’ and ‘How to Evaluate the Team’, respectively. In this episode, we continue the discussion on how to evaluate a startup. Today we discuss how to evaluate competition.
Highlights of this episode:
- Status quo, or how customers currently solve their problem, is always a competitor (often the main competitor)
- Good competitors improve one of three things for their customers:
- they are lower cost,
- they are higher performance or,
- they are more convenient.
- Talking to customers or industry experts is one of the best ways to learn about competition.