I'm often guilty of overestimating my competitors and over-preparing for battle with them. When the time comes for war, I usually run them over and kick myself for working myself up so much over-preparing.
The internet makes it very very easy to do this. A company can look large and show up alot on the search engines and really appear to have its stuff together.
Get your hands on their customer database and you might see that a company you thought had thousands of customers really only has a few hundred.
It's not that hard. Follow the tips in this article religiously and keep your mouth shut: http://www.nytimes.com/2011/02/13/business/13search.html?pagewanted=all&_r=0
Check out your competitors carefully. Sometimes the ones you thought were the biggest threat to you might be more fragile than you thought.
It's easy to get penis-envy in business. Especially in internet businesses. Maybe you think your competition has a better web site or they have more staff and all their photos and videos make it look like a nice operation, but the internet shields you from the reality. It's quite possible they're working in an abandoned warehouse somewhere and using smoke and mirrors to try to prop themselves up.
Be confident in your business, you just might have more going for you than you thought!