f our idea is good and our business is profitable, best believe that there’s a chance that someone will copy it!
Let’s be honest – it’s in our nature as people and as businesses to want to succeed. So when we see that something is working and there is a demand for it in a specific market, we’re bound to want to implement it as well (at least to a certain degree).
Think about it this way. Many organizations in the entertainment sector opted to invest in digital streaming services when the online streaming market began to demonstrate strong revenue potential. I mean, after Netflix literally drove Blockbuster out of business - many of its competitors started to implement Netflix’s way of doing business.
And that’s how copycats come to life!
But replicating a business is not a new concept. In fact, people have been doing this ever since the Industrial Revolution. However, because of the limited resources back then, it was hard to copy and paste a new idea. And the fact that if you copied a business you saw in America and brought it to Europe - nobody would notice. With the introduction of the internet, now it’s much simpler to copy, share, and transmit ideas from one end of the globe to another, allowing for faster innovation, creativity, and progress.
And as you might expect - it’s easier than ever to build your own startup. Especially if you’re copying someone else’s idea and business model. Sadly, this represents a potential threat to the market and can create unwanted competition for pre-existing businesses. So, make sure that you try as much as possible to try new ideas - because nothing compares to something that you created on your own. But do not get me wrong - taking inspiration from businesses and founders that paved the way for us is not a bad thing - but it should be done in small portions.
We must be mindful not to cross the line between stealing and actually bringing something new to the market. We might also tend to believe that it’s okay to copy someone else’s business model as long as we’re adding new things. Whether it’s new features, new products, or we’re using other processes. Besides that, it’s not really ethical, and it’s also frustrating for the existing companies. Also, the fact that it’s unethical should be the least of your concerns, as in some countries, it’s seen as a felony, depending on the laws. It may be considered copyright infringement or even intellectual property theft. In some situations, this can result in considerable fines or even jail time.
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You know when you’re cooking something, and the first attempt is usually pretty bad?
This can happen in business as well. And, sadly - if you do not see the light at the end of the tunnel but still want to be a founder - there’s a chance that you will turn to copycats. This can be extremely difficult for entrepreneurs that are starting from scratch to create a successful business model that both fits the product, and it’s appealing to the market. Especially when you do not know how to do that. However, if you are ready to put in the effort, the rewards of creating something unique to you may be quite fulfilling.
But copycats are considered dangerous because they already have a foundation. All they have to do to succeed is work on that foundation to optimize it and make it ready for the market. And if they can do that, it creates tough competition for the existing startups that struggled for years to come up with something fresh and innovative.
But why are startup copycats detrimental?
Besides the fact that they create an extra level of frustration for other startups that put in the work, copycats are not wanted because they can heavily disrupt the market. Not only that they make unwanted competition for the pre-existing startups, but they can also harm them, which in some cases might cause their downfall.
Why? Because everyone chooses the better option. And if copycats succeed in making themself seen as “the better option”, they can steal the customers from the pre-existing startup. And do you want to know the worst part? Copycats can steal our customers and even our employees and other stakeholders!
However, let’s be fair. Not all imitators are harmful to entrepreneurs. They may assist in validating a company’s idea or product or raise more awareness for them. Also, copycats can serve as a source of inspiration for new product developments and improvements. After all, if a company similar to yours appears, or even copies some of your key features - you’ll want to innovate even further in order to keep your market share and your customers.
So how can you protect yourself from copycats, the unwanted competition?
Always improve your features, your product, and other processes! Everyone is always looking to grow. And so should you! Constantly innovating will provide your product with a competitive edge and ensure that your consumers remain loyal to you. You may also safeguard your intellectual property by registering a patent or trademark for your product or service. This will provide you with legal protection against competitors who attempt to steal your ideas. It’s a must-do, especially if you feel like you have the “next big thing” idea.
Also, focus on your customers. If your customers trust you, no other competitor will make them leave you - no matter if he’s a copycat or not. Let’s be honest - if you’re doing it right - not even lower prices would turn your loyal customers to other competitors. The quality and history are what make the difference.
Copycats are… something. If you are dealing with them - do not stress it out, focus on making your product the best in your niche. You know that you put in the work - and no start-up made overnight should tell you otherwise.
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