yes there are lots of people starting up, business link had a record amount of enquiries the last couple of months, people have thier redundenhcy money and want to start that business they've always promised themselves,
unfortunately not many of them have ever run a business before and wont really know how to market it, so most will sell on price, and if you do that, then your only competition will be the price of others, this will put you out of business fairly fast,
you need to find a usp to make your business stand out from the crowd, with the sheer number starting up, this will be your only hope, keep prices sensible and stand your ground.