Is there any reason to scrap a start-up, when you find out there is more competition then originally thought?

This answer might be somewhat counter-intuitive, but I'd say that an increase in competition should encourage you to pursue your start-up even more. Here's why:

• Your market has been validated. A lot of startups exist in a vacuum, trying to solve a problem that no one really cares about. Whenever your product is the first one in a market, there's always a huge risk that the market for that product isn't mature or doesn't exist. However, the presence of other companies in this market indicates that there is potential to connect with buyers. Consumers seem to care about what you do, and that's always a good sign.

• It's now easier to define your product. If there are only a small number of other business in your industry, then consumers might not understand what you do or why it's important. But if you're in an industry where there are many other competitors, it's more likely that consumers will have already heard about your type of product and understand what you do in a broad sense. This will make it easier for you to focus on what your product does specifically. Your competitors also give you points of differentiation and comparison. For example "we do X, and we do it faster than company Y". Use your competitors as references.

• You can learn from their mistakes without having to make them yourself. You don't have to take as many risks by developing and testing every new feature you can think of. Keep a close eye on what your competitors are working on and use their mistakes to your advantage.

• You'll stay vigilant and focused Without any real competition, it's easy to get lazy. If you're the only company in your market, your customers can't leave to go anywhere else, so you don't pay as much attention to their needs. But if you have many other competitors just waiting to scoop up your customers if they leave, that'll light a fire under you to always strive for the best possible product. It'll give your team motivation and force you to focus more intently on your customers, making you a better company.

A lot of people would ideally like to run companies that have no competitors so that they could be care free and lazy, but I'd argue that the presence of a few similar-sized competitors creates a more exciting and rewarding environment for a startup.