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If you want an edge, instead of facing established competition head on, listen to your own whingeing.
My most successful businesses began with me asking myself why the heck everyone does something a certain way (which irritated me) or why didn't they do such and such (something I wanted). It's not necessary to go out and discover a brand new niche, the way people in online porn often suggest: some small difference is often enough to set you apart.
Otherwise, take on board what Mark T wrote and always be your own most critical customer.
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