How to Beat Goliath? Keep Being David

Chances are, you will at some point compete with much larger companies. And, chances are, you will have the upper hand.

I still remember how worried we were when my last company, Udemy, was a tiny education startup and Google announced Course Builder.

It was like the worst-case scenario investors pose when you're fundraising: What if Google takes your idea and launches a competing product? But here's the thing: Course Builder went nowhere.

Then came Google Helpouts, plus several attempts to monetize learning content on YouTube. None of those ever became a significant threat to Udemy.

It's true that the Googles of the world have vast resources. But, as a founder who's built two companies that have taken on enormous incumbents, I have some good news: Giant competitors-the Goliaths to your David-are far more vulnerable than we entrepreneurs assume. In fact, I've learned that we have some advantages against them.

For one thing, it's a good bet your Goliath has already sold out its customers. Big companies spend years establishing market dominance by creating something that customers love. But when they reach the limits of their original customer segment and their growth inevitably slows, they often start doing things that customers don't love-layering on fees, for instance. Everyone knows customers hate fees, but the money is more important to a Goliath.