“Did you know there are 10 billion mobile phones in the world? I have an idea for an app. If we only get 1% of the 10 billion users out there, I’ll have 100million users and my company will be worth R1billion. Will you give me R10million for 5% equity?”

Is this you?

If so, pay attention:

Market size matters. But competition matters more.

Yes, there are billions of mobile phones in the world. Yes, there are great opportunities to be grasped. Yes, if you grasp them you will be rich.

The question is: How will you avoid competition?

How will you ensure you’re not fighting hundreds of other well-funded, hard-working entrepreneurs?

How are you different from the hundreds of others that chased the same idea and failed without trace?

Assuming that by some miracle you find a niche in which you’re the only player, the next question is: How are you going to let people know about your product?

How will you raise awareness? How will you market?

These are the questions to ask yourself before you ask someone else for investment.

Otherwise you’ll look like a fool and fail.

Or worse, you’ll find a fool investor and you’ll waste two years of your life, at the minimum, chasing an impossible dream and losing other people’s money.