[fjabre]

I would say it depends on the type of tech and solution you're dealing with.. If it's an interactive children's book for example then the tech or resources required are minimal and it's more about your unique spin on the product than what's behind it.

If you're talking about creating the next iTunes, something that requires tremendous resources, or bleeding edge tech like Google Wave then you're probably right - you just won't have the resources to compete. Those are the kinds of products that a well funded company will always have a clear and definite advantage in producing.

Somewhere in between the two extremes is a large grey area where with a little bit of luck and determination anything is possible..

I would stay the course unless the financial burden is too great.. It's often the case that when you keep working towards a project goal you find new and interesting ways to tweak your product offering so that it becomes something entirely different and unique in the marketplace..

As long as you think there will be real demand for your product then there is always a chance to spin the marketing in such a way that makes your solution stand out from the rest. Feedback is critical as well.. So don't be shy about asking friends and family.

Your first concern should always be product/market fit not potential competitors.