How to Do Competitor Research Properly
Founders often panic when they find a competitor. That reaction is backwards — a competitor proves somebody pays. What matters is finding where they fall short.
Last updated 2026-08-17
No competitors is usually bad news
An empty competitive landscape most often means one of three things: the market is too small to sustain a business, the buyer does not actually have a budget, or something structural makes it unworkable. All three are worth knowing before you start.
Finding the gap
- Read their two and three-star reviews, not their marketing site
- Look for the workflow they do not support, not the feature they lack
- Note which customer segment complains most — that segment is your wedge
- Check their pricing floor; being priced out is a gap you can serve
Positioning against an incumbent
You will not beat a funded incumbent on breadth. You beat them by being the obvious choice for one specific case they serve badly — which is exactly what their unhappy reviewers are describing.