If that is your dream than you should go after it.
If you work hard on your SEO you can get on top of Google, but I would rather suggest you to come up with something new to offer, and mybe put a little cheaper price 49.99 works better than 50

with only 2 competitors in your field you have chance to beat and outsmart them, and if it's really your dream to do it, i believe it's possible.
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You'll need a unique selling point to differentiate you from your competitors and a significant budget for marketing.

I'd do more research and really try to justify why it would work using nothing but pure hard facts.

Have a go at analyzing the competition to see whether there really is space for your business too. I'm sure there would be as long as you're better / cheaper than the are.

I would agree with both the comments above. If you really want to do it then you can make it happen. Try to be original though and don't just do something that's already out there. If you give your directory a string USP and work hard on the SEO, there's no reason why you can't succeed.
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Hmmmm, sorry but I’m going to disagree to the above posts as I think differently; You have doubt already in your mind hence your need to come on this site and ask for advice and a simple response of follow your dream is not a good enough reason in my opinion to start a new venture when you are already threatened by some new competition, doesn’t bode well for the future.

It is in fact irrespective of the type of business you are starting but like has already been stated above it is what you are selling that is important.

Your idea is to compete with an already established business offering exactly the same product for the same price, would you see any point in paying someone to do exactly the same thing for the same money especially if they were new to the game? I know I wouldn't, more than likely the other companies will drop their price to out market you. Would you be ready for that.. to enter some mindless price war of dropping pence at a time?..

You are going to have to think of something quite dramatic, I know you have sat there and looked at how much money you could make i.e. 600 signups.. £30,000.. forget that concept as it doesn't work you are looking for sustainability and a way of getting those customers to join you instead of the competition.

I would look at what over heads you actually have.. .are you building a £500 website just to make huge profits? Is this your only drive? if so.. why not charge each business £30 off new signups.. offering them a first year deal of £19.99. While 600 customers would only give you £12,000 return you have more chance of getting those customers than you would if you tried to sell something that is not established for the same price. Obviously come year 2 you could increase your cost but offer more for the site, but it would give you a year to think how you are going to improve.

Anyway, don't want to dis-hearten you as I think in essence competition is a good thing, just think what would make you leave your current supplier for some other random company that you have never heard of or trust.. that’s were you will succeed.

Take care

Christopher

Hi

Sorry but my view is this is a very sensitive area for a new directory unless you have contacts within the business. All I can read into your post is £££££ signs and not what you can offer people at a very sad time. You yourself say that you can bring nothing different to the table that the others have already got. For me it is a total non starter just from your post, step back and read it and I think you will see you have the wrong approach, sorry.