Anyone that has done a little competition research on Google, or a keyword suggestion tool might be a little overwhelmed at first.  The reality of Internet business though is that very few people running these (Internet businesses) actually know how to market their web site online, which eliminates 95% of the competition right from the start (in my opinion).

You may get a little worried when you Google something and find 25 million results come back, and you start to think; "How am I ever going to compete against 25 million people?"  Am I right?  I know it has crossed your mind at some point in time during the setting up of your Internet business in order to work from home.  Here is what you have to realize - Out of that 25 million, how many of those results are actually competition?  How many of those results are an article, or a paper somewhere and have your keyword in the content somewhere, and are showing up as a result just based on that?   Google is doing a pretty good job lately at serving us up a list of pretty relevant results on the top of the SERPs, and if you have a site that is actually selling something (and relevant content) then you will be above most of the 25 million worthless pages that come back as results. 

Narrow down the competition by using the tools that Google freely gives away, and do an "allintitle" search for your keywords. If you go to Google and type in the search bar - allintitle:your keyword here .... (obviously typing in your keyword or phrase instead) you will get a list of sites that are using "your keyword here" in the title of their page.  You will notice how this dramatically reduces the number of websites that come back as results.  This is not a perfect number, but does give you a better idea of how many people you are actually going up against.  Now, you take that number and there is a very small percentage of people that actually know how to market their site online, and that is your true competition.  If you are a brand new site and have no Internet marketing experience, then I would suggest not going after a market niche that brings back more then 20k results when using the "allintitle".  Remember, the lower the number (allintitle) the easier it is to obtain a higher ranking on the search engines.

I am involved in industries that one would think are highly competitive just through basic searches on Google, but when really taking a deep look into the competition there are usually 4-5 sites that I am going up against that really know what they are doing (and this is out of millions of results with the first Google Search).  Finding this information out helps me know (and could give others the courage) that I (or they) am not wasting my time, there is not to much people doing what I want to do, and that my Internet business actually has a chance to survive and thrive.