Bookie Tips: Recognize your Competitors, Including Substitutes
Although you may think that the new idea that you have for your bookie business is unique, the truth is that there are likely other bookmaking agents whom are considering the very same idea for their own sports betting companies.
Here is some information that can come handy when assessing the competition of your bookmaking organization in order to take your idea to the next level by moving through the right path and avoid any unnecessary pitfalls.
Bookie Tips: Acknowledge the Competition
If you happen to be looking for funding from a prospective angel investor for your new idea, acknowledging that you actually have competition is better than saying that what you have in mind is so unique, that there are really no competitors at all.
This is because seasoned angel investors are aware of the fact that no idea is so unique, and they prefer to deal with someone that tells the truth, than with someone that tells them that they have no competitors at all.
In fact, when a bookie entrepreneur tells a prospective angel investor that he has no competitors, this makes the bookmaking agent appear as unprepared, delusional, and instead of increasing the appeal of an idea, it decreases it.
Remember: Even if you are pioneering a new market and your direct competitors are not too obvious at first, the reality is that they are there.
A big mistake that bookie entrepreneurs make when they are in the process of researching their competitors is to overlook substitutes.
And when it comes to the business world (the sports betting industry included), substitutes can really harm a start-up, especially due to a price war.
The case with many bookie entrepreneurs is that they regularly make the mistake of focusing their competitor research on start-ups that are working with a similar business model.
For example, many experts believe that Blockbuster ultimately failed because this movie rental company didn’t do the proper research on a substitute such as Netflix.
If Blockbuster had managed to assess the threat of Netflix on its early stages, Blockbuster could have increased his chances of surviving by implementing a similar DVD-by-mail service.
In sum, it is quite important that you recognize that you have competitors, no matter how unique you believe the new idea for your bookie start-up company is.
Also, avoid thinking about a competitor as a company that offers exactly the same that you are offering to your sports betting clients.
If you do this, it will be easier for you to impress prospective angel investors in order to get the funds that you need, and to actually make your new idea to work the way you want it to work.