Many small time business people are horrifically scared over the competition.
Many never start a business because someone else in their area is already doing the same thing.
This is a misnomer, as indeed many times it is better to go into a market with competition rather than to be first to market.
Recently someone who felt one of my companies was a competitor emailed me.
He said it is better for us to get together than to steal each other's accounts.
Well this prompted an email reply from me:

Bob, we are not interested in stealing anyone's accounts, besides even if we ended up with some of your accounts in the future or you ended up with ours, that is competition and that makes us both strong, that is a good thing for the customers and for our individual companies.

In fact, a good book to read on this subject is Milton Friedman "Capitalism and Freedom" as it best explains the paradox of competition and successful and strong companies in one of the chapters.
I would advise any new entrepreneur entering the market in any industry sub-sector to not get to paranoid over the competition.
Yes play to win, always, like Vince Lombardi says, but strength comes from practice, strategy and will.
Know your competition and know yourself and in 100 battles, the game is a given.
You should be the best, hire only the best and expect only the best.
Plan for success, know your competition, but do not let the competition scare you.
You are the competition, so start acting like it.
Sincerely, Lance.