Peter contacted me three years ago for creating a custom software or as he called it, a bespoke software. He said he had a fantastic idea with a very high probability of success and very little competition. He didn't tell me what it was about because he wanted us to sign a Non-Disclosure Agreement (NDA) first. We normally don't do custom software if it is not related to our existing products, so I turned down the work.
He did keep in touch and over the years even bought some of our regular products.
A few days back Peter emailed again asking a question about his site and how he can do better than a competitor of his. This time he included his and his competitor's site URLs. He also told me how he was late to market his idea because he couldn't get the software developed fast enough.
Before offering him any suggestions, I decided to do a simple historical research.

The Internet Archive spiders and archives the websites on the Internet. This is the best place to see how various websites evolved over the years. We checked Peter's site as well his main competitor's site.
Here is what I saw...
2005, January
Peter comes up with the idea and contacts me. He is looking for some one to convert his idea into a software. He registered the domain name a month before, but no website yet!
2005, June
A competitor launches a site. The site has a single page with 4 short paragraphs on the subject. There is an email link to contact him for more information.
Peter's domain is parked at the registrar.
2005, August
The competitor's site has now grown to 4 pages. There is a newsletter sign-up form. A couple of articles and a free PDF report. The report is is given as a bonus when some one signs up for the newsletter.
Peter's domain is still parked.
2005, November
The competitor's site has now grown to about 15 pages. He is now offering more free reports and also selling a package on a CD. The CD appears to be a collection of reports and some tools compiled after obtaining permission from various shareware and freeware sites.
Peter's domain is still parked.
2006, December
Peter launches his site. He is now selling the software for about $50. The site looks professional and well created. There is a user guide and more details about how to use the software with all the features well explained.
2007, February
The competitor's site has grown. It now has a large number of articles, free and paid reports, multiple newsletters and yes, he is now selling a software similar to that offered by Peter but at double the price! There is also an announcement that more advanced versions will be released soon!
2008, April
Peter's site is not doing that well, while his competitor is huge. They have a very popular forum and blog that attracts a lot of comments. They are selling multiple versions of the software in different price ranges.
So, What happened here?
Peter had almost 5 months head-start but didn't do anything because he thought he should have everything perfect before the launch. He could have launched his site even after the competitor created the one page site. He didn't!
He waited almost an year to get started! Meanwhile, his competitor who had no software and very little content got started and then slowly entrenched himself. By the time Peter was ready with the software, the competitor had a commanding position in the search engines, had a mailing list and even had paying customers!
Even after Peter launched his software, it took his competitor just a couple of months to create a competing product!
One of the best advantages of having a website is that at least some visitors will interact with you and tell you what they are looking for. Our own products have improved over the years because of customer feedback. When Peter's competitor saw the new software, he could create a better one in no time because he had the experience and the expertise he had acquired during the time.
Get Started Today!
If you have an idea, start working on it. The best thing about the Internet is that you can add and modify things almost on a daily basis and you can interact with your target market. Your end user simply wants to solve his problem now! So all you have to do is give him an opportunity to tell you the problem. If you have a solution give it to him immediately!
Many people are worried about some one else stealing their idea if they discuss the product. If you are worried about this you should talk to an IP lawyer and start the patenting process. Then launch your product as early as possible! Even If you don't get a patent you will still have the product!
The real truth is that ideas are dime a dozen! In 99% of the cases, the ideas are never really unique and there will be so many others toying with the same idea. The winner is the one who takes action!
It doesn't matter if your final product is not ready! You should still be out there with a website. Get enough people interested so that there will be an eager group of people waiting to buy your product the moment it is ready! Otherwise some one else will walk away with the trophy!