There is definitely an advantage to being an early mover...in any market, particularly in a small market. But if you don't have some kind of patent or product protection, i.e. if you're in a service or retail venture, you run the risk of just waking up your potential rivals. Good ideas don't stay quiet for long.
If you are the first mover, but you lack the horsepower to get to market the way you need to, you have to know that there are others who are ready to "swoop" in, with more experience, talented people, or even more capital.
There's a delicate balance between keeping a low profile, and building your horsepower: infrastructure, people, technology, strategic relationships, and capital in place, so that you're building the traction you need to effectively compete with whomever may try to encroach on your turf. Ideally, you want to project (not just cosmetically, but in reality) that you've got it figured out, and you're there, and you've got enough of a head start to make it difficult to cut into your market dominance.
Truthfully, there is almost always someone who is positioned well, and has better access to capital. So the best you can do is to build the highest quality operation as quickly as you can. Then at least you have a fair shot at being able to compete when the wolves arrive. If you build it right, you can position yourself to be an effective competitor, or an attractive acquisition target to a larger and better capitalized player.
If you're a start-up, and you don't have piles of cash sitting in the corner, you need to make the most of whatever you've got.
Move to the most advanced, money-saving technology you can. There are very inexpensive cloud-based customer relationship management, productivity applications, and industry specific applications. Advances in technology are driving quality and functionality up and price down in software, hardware, telephony, etc. Don't start off in the hole, using legacy technology, where someone else can come in and do the "technology leap-frog" over you. Better technology means more efficient handling of information, production or communications, or operations, and more flexibility and adaptability. All of these contribute long-term to more effective decision-making, and ultimately to higher and more sustainable margins, making you a better competitor.
Get key people in place, internally and externally in the form of strategic partnerships. You're going to need highly motivated and highly adaptable people in strategic positions...this might be strategy and development, or legal, or sales and marketing. If you have a good opportunity, entrepreneurial and driven people will recognize it and will want to be a part of it, and willing to share the risk to build it in the hope of future glory.
Most of all, don't go to sleep. Don't get complacent. The wolves really are at the door.
