In the world of startup pitches, discussions about competition often take a backseat, overshadowed by a desire to spotlight our strengths. However, brushing aside the topic only sets us up for a glaring question during the Q&A session: “How do you differentiate from your competitors?” I have seen this scenario in my past pitches as a startup founder and in giving expert feedback during pitch sessions. This prompted me to explore the underlying reasons behind entrepreneurs’ collective reluctance to delve into the competitive landscape. Here are only some of the biases in startup pitches that might be at play:
Optimism Bias: Seeing Through Rose-Tinted Glasses
Optimism Bias, the tendency to view the world through rose-tinted glasses, plays a significant role. It leads us to overestimate our chances of success while conveniently downplaying potential threats. By avoiding discussions about competition, we inadvertently feed into this bias, painting our venture as the undisputed market champion.
Social Desirability Bias: Maintaining the Facade
Social Desirability Bias also comes into play as we strive to present ourselves as the people behind groundbreaking solutions. Admitting the existence of competitors feels like a blow to our egos, so we often choose silence to maintain the facade of uniqueness and innovation.
Confirmation Bias: Reinforcing Preconceptions
Furthermore, Confirmation Bias reinforces our preconceived notions by prompting us to seek out information that aligns with our existing beliefs. By sidestepping discussions about competition, we cherry-pick data that supports our view of an uncontested market landscape.
If you are interested in biases, here’s a great summary from The Decision Lab.
Embracing Competition Is A Strategic Imperative
However, acknowledging and openly addressing competition isn’t a sign of weakness; it’s a strategic move. By understanding the competitive landscape, we gain valuable insights into market trends, consumer preferences, and potential gaps that we can leverage to our advantage.
Indeed, competition will undoubtedly be a question after our pitch presentation, whether we like it or not. Therefore, rather than shying away from it, we should embrace competition as an opportunity for growth, innovation, and ultimately, success.
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