Don't worry about competition. It's a good thing. It means you picked a good market. Focus on what makes you different and better.

Sounds like you may be a single founder. If so, find a friend or mentor who can help you work through the ups and downs. You're going to be discouraged a lot starting a business.

I went through a similar situation and solicited advice. Lots of people told me "know when to quit." I didn't, and I'm glad I stuck it out.