Entrepreneurs have to be confident in their abilities, otherwise, they’d never take the risk of starting a business. However, this confidence can backfire if it’s adopted as a company strategy. If you think you’re smarter or more hard-working than your competitors, your competitors are also thinking the same.
Competitive advantage arises out of true and exclusive advantages that give you an edge over competitors. Believing you’re the best or the most hard-working is probably neither true nor exclusive to you. Invest in actually building some real, hard-to-copy advantages in your business.
Remember: assume that your competitors are smart, hard-working, and hell-bent on growing their business. Only then you’ll do what’s needed to build a defensible business.
This essay is part of my book on mental models for startup founders.