Why Competition Doesn’t Matter in SaaS (And What Actually Does)

Markets evolve, and there’s always room for something better.

The real challenge isn’t competitors—it’s execution.

Most people overthink and never start. The ones who do, win.

Let’s break this down and see why competition doesn’t matter.

• Every new founder worries about competition.

• “Someone already built this,” they say. “The market is crowded.”

• But competition doesn’t matter. Execution does.

1. The Myth of the “Perfect, Untapped Idea”

• No idea is truly original. Almost everything has been done before.

• Success isn’t about being first—it’s about being better.

• If being first mattered, Yahoo would still dominate search, and MySpace would rule social media.

Example:

• Google came after Yahoo and AltaVista → Won by improving search.

• Facebook came after MySpace → Won by focusing on real identities.

• Slack came after HipChat → Won by making team communication effortless.

💡 Lesson: It’s not about inventing something new—it’s about refining and executing better than the rest.

2. Markets Are Bigger Than You Think

• Most people underestimate how massive markets are.

• Just because a tool exists doesn’t mean it serves every user well.

• Different users have different needs—there’s always room for variation.

Example:

• Notion entered when Evernote was huge → Won with a better UI & flexibility.

• Zoom entered a crowded video call space → Won by making calls simple & stable.

• ConvertKit took on Mailchimp → Won by catering to creators instead of businesses.

💡 Lesson: Even in “crowded” spaces, small differences create new opportunities.

3. Execution Beats Ideas Every Time

• A B+ idea with A+ execution will always outperform an A+ idea with B- execution.

• Speed, adaptability, and listening to users matter more than uniqueness.

What great execution looks like:
✔ Shipping fast & iterating based on feedback.
✔ Obsessing over real user problems.
✔ Making something just 10% better than alternatives.

Example:

• Airbnb wasn’t a new idea (people already rented rooms), but they executed flawlessly.

• Uber didn’t invent taxis; it just made hailing one effortless.

• Shopify didn’t invent eCommerce; it made online stores easy to set up.

💡 Lesson: Ideas don’t win—execution does.

4. What Actually Sets You Apart?

• If competitors exist, good—it proves there’s demand.

• Instead of fearing them, ask:

  • How can I make this easier?

  • How can I make this faster?

  • How can I focus on a specific group that’s underserved?

Example:

• Basecamp didn’t try to replace all project management tools—they simplified it for small teams.

• Substack didn’t compete with full blogging platforms—it focused on paid newsletters.

• Figma didn’t try to beat Photoshop—it made design collaborative.

💡 Lesson: Focus on what makes you different, not what makes you the first.

5. New Problems Create New SaaS Opportunities

• Technology evolves → New inefficiencies appear → New SaaS solutions are needed.

• Every shift in tech opens doors for new startups.

Examples of new problems creating opportunities:

• AI content tools → Companies now need AI content detection tools.

• Remote work → Tools for async collaboration exploded.

• Creator economy → More demand for better monetization platforms.

💡 Lesson: You don’t have to disrupt an old industry—you can ride the wave of a new one.

6. People Don’t Switch Unless the Difference Is Clear

• Most users don’t care about more features—they care about less friction.

• You don’t have to be completely different—just meaningfully better.

What makes people switch?
✔ A much simpler UI (Notion vs. Evernote).
✔ A dramatically faster workflow (Superhuman vs. Gmail).
✔ A solution built for their specific use case (ConvertKit vs. Mailchimp).

💡 Lesson: You don’t need a groundbreaking idea—just make an existing solution smoother and easier to use.

7. Competition Is a Distraction—Just Start

• Every successful SaaS had competitors when it started.

• The real risk isn’t competition—it’s waiting too long.

3 things matter more than competitors:
1️⃣ Execution – Fast shipping & constant iteration.
2️⃣ User Understanding – Solving pain points better than anyone else.
3️⃣ Unique Angle – A slight edge in UX, workflow, or focus.

Final Thought:
There are already 1,000+ CRMs. Yet new ones still succeed.
There are dozens of Twitter growth tools. Yet some hit $1M ARR.
There are 10+ AI podcast tools. Yet one will dominate.

Why not yours?

If this resonated with you, I share more insights on SaaS, execution, and building in public.

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