The three most important questions I ask myself when tossing a new business idea around in my head are:

1. Will the potential customers find the product or service really helpful?
2. Can we do such a good job providing it that the potential customers find it more helpful than their other options?
3. Can we inform potential customers about our helpful product or service in a cost-effective way?

This post relates to question #2. Since there is so much competition out there, it helps a great deal to have some unfair advantages, especially in the early years of a startup.

By unfair advantages I mean existing core competencies, relationships with key people in the market, synergies with other businesses, etc. Why compete on a level playing field when you can compete on the part of the field where you have the biggest advantages?

Here’s a personal example. When we started ATS Rentals, a nationwide online audio, video, and projection equipment rental company, we had the following unfair advantages:

• I had previous college work and job experience in a/v and broadcasting technology. I could do my own equipment repairs during the startup phase.
• My most senior employee at my existing business had a degree in video and film production, and tons of gear knowledge.
• I had experience from a previous business of mine that specialized in e-commerce web site development. I could develop the software to run the web site, booking, and shipping system for just the cost of my time.
• We had an existing customer service staff, warehouse, and shipping infrastructure in place that we could share with the new startup. We had everything in place to test-market the concept without hiring a single employee or building out any facilities.
• I had my own capital to fund the startup, avoiding the cost of obtaining financing and carrying the insurance, etc that would be required by the bank or investors.

My point is not that I or my companies are special. My point is I picked a business that fit what we had and were good at, so we would be starting with some unfair advantages.

You have unfair advantages too. Everyone does. I encourage you to know what they are and work them into your plans. Be unfair to your competition on purpose.