If you have an internet business which is exclusively online, there is always a lot of competition since the entry barriers are low. One of the things to track is the costs which other companies who could compete with you have, so I found this post (and comments ) on startup costs interesting.
In India the infrastructure is very poor , electricity goes off up to eight times in an hour where I stay (and it is worse in other places) and internet connections are often very slow, so the only way you can compete with other companies worldwide is by keeping your costs very low. Most start ups founders wish to maintain the lifestyle they lead when they had a job, but if you need a minimum of 10 lakh a year for your start up, your chances of success are much lower.
If you lead a frugal lifestyle and optimize your web hosting costs, you can easily manage an online business with even a few lakhs a year. The advantage of having a low cost set up, is that you can reinvest a much larger amount on productive business assets, experiment more with new ideas and also be very selective while choosing both your customers and vendors.