[codegeek]

What is your target market size in general ? I mean are you are going after a specific niche where you expect to get about 1000 paying customers total OR you are looking at a consumer app where you want millions of users ?

I would not worry about too much competition. I would rather look at how much piece of the pie is potentially available (depending on the answer to the question about market size above). For example, you say that there are 5 national competitors for that particular idea you had but locally, there might be opportunity. So why not start local and talk to your potential customers ? Again, depending on what your target audience is and their market size, it could be very likely that there still is a big piece of the pie left for you.

[justin0469]

The target customer are mid to large restaurants and bars. So, it could be a local idea but long term would be national. Seeing the same device/software at whatever restaurant you go to might be important and make it harder for me to have a piece of the pie.

My biggest concern is how important is it to differentiate myself? The competitors have had a working and refined product for months or years so chances are they'd have a better product. They charge monthly with no upfront hardware costs and have small trial contracts with Applebees, Chilis, etc.

I realize there's 100 companies that make toilet paper and most survive, I'm just not sure if that is an appropriate analogy.

[peterxy37]

IMO, without differentiating yourself from competitors, you have very less chance of success. Probably you can provide product/service cheaper with same quality. As you are starting local, you could probably differentiate with better support..

toilet paper industry and software industry works differently . They have very different dynamics. You can not conclude anything in general from traditional industry for software industry.

[justin0469]

I agree and that's the reason for my hesitation. Yes, I have ideas that would make it better than theirs. They just have a lot of time and money in their favor already.

That being said, I know personalized and better support is worth a lot.

Is it OK to flat out say that the plan is to be bought out by competitors because the products are similar?

[AznHisoka]

You are focusing too much on what to tell investors.

Focus instead on your messaging to potential CUSTOMERS instead.