Many people use websites to find potential suppliers.
The internet does a great job of leveling the playing field. So a new competitor with limited funds can be very visible on the internet. If your organisation is not there, then the competitor may be the only visible supplier.
Provided what the website offers meets the customer's need, then the competitor gets the business.
It's also important not to allow the competitor to be the first one with a website. It takes some time for a website to establish itself on the internet with the search engines. If your competitor steals a lead on you, then you may find it difficult to catch up.