Today, almost every new technology is being called “disruptive,” and it’s mostly because that specific word has been overused for so long. It became a cliché, but there are situations where it fits perfectly. Some revolutionary companies, like Aereo (the television streaming company) and Uber (the ride-sharing app,) have entered the market and used their potential to disrupt the way their industry operates.
These innovations are known as the “big bang disruptors” and were evident in hypercompetitive markets, such as computing, gaming, and electronics. However, they have moved into other industries as well, and now there isn’t an industry that hasn’t experienced an enormous transformation due to these big bang disruptors.
Have you asked yourself what does it take to be a significant disruptor? Here is what you should know about it.
- Listen to Visionaries
Who should we consider a visionary? Anyone from your employees who have decided to move from one to another successful startup because they see a more promising future, to industry thought leaders like Elon Musk or Steve Jobs, who are persistent in chasing the dream of the future. They are the truth-tellers because their lives depend on it, and they can show us things that are not so obvious. And besides the truth-telling people, future market demand can be indicated by crowdfunding campaigns and today’s enormous data sets.
The most innovative products used to be developed by the companies with the most robust R&D (Research and Development) departments. Today, small tests can be conducted without enormous budgets. Experiments with the potential to grow into disruptive ideas. The risk and cost of experimenting are getting low.
- It’s Also about Timing
No, it’s not a matter of luck because luck plays such a small role. Take Amazon’s Kindle for example. Jeff Bezos has decided to avoid all the problems that other e-readers were encountering with the technology, waiting for it to mature. When it hit the market, it wasn’t the first e-reader out there, but it was the best. That’s how the timing was crucial to the success of a big bang disruptor.
- Handling the Quick Scaling
Once a disruptive product enters the market, it creates an enormous demand. However, such quick success comes as a challenge because you need to be prepared (logistically) for fast business growth. Consider finding partners or outsource ahead of time to get help when needed.
- Stay Competitive
Once you make a disruption, new iancumbents will start flowing into the market, trying to get their piece of the cake. Every product has a saturation point – when the user base peaks and then continue to fall. Give your best to anticipate your product’s saturation point.
- Think What You Can Do Next
At one point, things will start slowing down, but you will be prepared. Plan your next move before the fire starts dying down and sell your assets before they turn into liabilities. Use your money to develop the next product or start reducing your expenses early on. Don’t use all your resources to that one breakthrough product.
In the beginning, you were a disruptor. Later, you will also become susceptible to disruption. Anticipate threats to stay alive, and realize that you’re being slowed down by your product that was once a disruptive innovation. Quit while you’re ahead and avoid ending up spending vast chunks of your profits trying to save an industry in decline.
For a peek into the future and getting a clue about emerging industries and markets where you may enter as a disruptive entrepreneur, there is the Financial Policy Council. To us, America is the land of opportunity, and we want to inform, educate, and empower entrepreneurs by helping them understand, support, and recognize the issues and opportunities of their concern.
Come join us and be part of decisions that will shape the country’s future and the world.
August 4, 2018