This is part of our Frequently-Asked Questions series. Be sure to also check out Raising Venture Capital, Do I Need a Co-Founder and Finding a Technical Co-Founder.

Who to research depends on the industry you’re entering. One common mistake across the board, however, is focusing only on the most direct competitors and drawing hasty conclusions without accounting for the broader competitive landscape that consumers actually consider.

A more helpful approach is to define competitors from the customer’s perspective. In addition to asking who operates in your space, ask what customers see as alternatives and how they are meeting their needs today.

This can include:

• Existing companies, both established and emerging;
• Manual “pen-and-paper” and spreadsheet solutions that act as substitutes;
• Other tools customers have modified for their use case, even if they weren’t purpose-built.

When customers spend time adapting other products, it often signals real demand.

Look Beyond Direct Competitors

Once you have a sense of how customers currently behave, it helps to zoom out and look beyond surface-level Google research. Exploring Product Hunt launches, startup awards, trade shows and accelerator cohorts like Y Combinator can offer insight into what other early-stage teams in your industry are building.

Reaching out to founders whose startups attempted, and failed, to solve similar challenges can also be valuable, as their experiences often surface lessons that aren’t obvious from the outside.

Assess and Identify Your Unique Advantage

After identifying businesses that offer similar solutions, consider how strategically important those offerings are. Is the product core to their business, or more of an afterthought? Companies sometimes launch responses to competitors without fully resourcing them. If a solution isn’t part of a competitor’s strategic focus, that gap may represent an opportunity. If it is a clear priority backed by significant resources, it’s worth recognizing that the path forward may be more challenging.

As a general rule of thumb, try not to compare where you hope to be in a year with where competitors are today. A more useful approach is to focus on what your team brings to the table right now — where you can execute more effectively and what matters most to your customer. In many cases, differentiation comes from focus, insight and resources, not novelty alone.

Treat Competitive Research as an Ongoing Process

Make competitive research a regular part of your startup journey. Markets evolve, companies pivot and new players emerge. Keeping an eye on changes in competitors’ products, messaging, hiring and customer focus can help you stay prepared and adapt as the landscape shifts. Reviewing job postings can also provide clues about where competitors are investing and what they are building next.

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