I never think it matters if there is strong competition IF you have passion for your business and you provide high quality/ high value products and services to your customer.
I live in a town of 30,000 people and there are probably 10 pizza restaurants. They all seem to be surviving and most seem to be doing well.
Bill Bartmann built a $3.5 B collection agency despite the fact that there were 6000 other collections agencies in America at the time. He started that business with a #14,000 loan working from his kitchen table.
In my opinion, you just need to bring the unique ingredient to the table...that is YOU. Be yourself. Be the best you can be and over-deliver to your clients. You will earn customer loyalty and referrals.
I hope this helps.
If you are able to share more about your business with us, perhaps you will get a wider variety of advice from the good people on this forum