Even after business funding is secured, business bookkeeping is sorted, and a target customer is acquired, even the most seemingly secure business can fail. When faced with the harsh reality that only 50% of new businesses will survive beyond five years, how does an aspiring tech entrepreneur set up for success amidst a fiercely competitive landscape? Creating a disruptive business model might just be the answer.
While most market focus on sustaining innovation (making incremental improvements on existing products or services), this only satisfies customers’ current demands. On the other hand, companies that have disruptive business models, focus on disruptive innovations, which create an entirely new or different product or way of doing things and ultimately meet customers’ future needs better. By shattering existing paradigms and instead creating new markets or reshaping existing ones, once-established market leaders are ultimately displaced. A prime example of this is the success of Netflix vs. the bankruptcy of Blockbuster.
For actionable tips on setting your business up to be disruptive, see the infographic from Fundera below.