Keeping afloat in a sea of competition is no small feat for new businesses, especially when facing the harsh reality that only 50% of new businesses will survive beyond five years. While a quick internet search for “how to open a business” will tell you all about setting up a business website, creating a marketing plan, and figuring out funding, an entrepreneur should really be focusing out how to create a disruptive business model.
Companies that use disruptive business models innovate their offerings to serve new markets that have traditionally been neglected by market leaders, no matter the industry. Take the success of Netflix and the failure of Blockbuster, for example. Netflix appealed to customers who didn’t want to stand in line or deal with late fees, and Blockbuster refused to change their model to tap into new markets. Like in this case and so many others, startups that shatter existing paradigms and instead create or reshape markets are successful at disrupting once-established market leaders.
For actionable tips on setting your business up to be disruptive, see the infographic from Fundera below.
