It has been well documented that it is easier now more than ever to start a business. I hope you get as excited as I do when I read that sentence. The ease of starting a business now is due to the evolution of technology, its efficiency and effectiveness, increased reach, and affordability. Think about all the apps and websites out there that offer business management tools and creative interfaces that are user-friendly and very affordable, sometimes even FREE. Moreover, the quality of these services and products are getting closer and closer to what a professional accountant or graphic designer would charge premium dollars to execute. So what does that mean? Start a business NOW!? Well not exactly, as the barriers of entry fall, the more competitors enter the market, the lower the profit margins become, the more a company has to innovate and disrupt.
Disruption and innovation have always been essential for new companies entering an established market place with many competitors and industry leaders. The only difference now is that everyone and anyone can start a business and enter a market place; no matter the location, access to capital, or industry experience. However, just because it is easy to start a business does not mean you should, or for that matter, if you do it will be successful, make you rich, etc. I believe it is the opposite. Yes it's easier, and you can start and run a global business from the comfort of your own home, but that just means there are more people doing it and most likely failing at it.
When you enter an established market place it is more important, now more than ever, to come in and make a splash, shake things up, and make a name for yourself as quickly as possible. Disruption is, in my opinion, the most important attribute any SMB or Start-up should posses. By definition disruption is a disturbance or problems that interrupt an event, activity, or process. Therefore, as an entrepreneur that has an idea or wants to launch a business, the first things you should ask yourself is, how can I disturb and/or interrupt the existing market place. How can I get my product/service out into the market place with the least amount of resources (capital, people, infrastructure, etc.)? Without a disruptive plan starting and launching a business can be difficult, far more difficult than with a plan to disrupt the market. Think about it, you want to start a car/ride sharing business but plan on replicating the existing taxi and limo service business models. What do you think your chances are in capturing even a fraction of a percent of market share? I'd say slim to none. These services have been in existence for 50 plus years, and are entrenched in every major city with strong unions and political leverage.
So what do you do? You disrupt the market, interrupt the normal way of doing business. You innovate. You change the way things are done. You let the competition know you are for real. You capture as much market share as you can, and quickly! Look at what Uber and Lyft are doing. They are now approaching the market leaders in this space, with the taxi and limo unions doing everything they can to stop them, or at least slow them down. They leveraged technology to disrupt an inefficient, archaic business model, which is happening across many long established industries: Music, Entertainment, Razors, Higher Education, Business Management Services, Financial, Automotive, etc. Disruption is happening everywhere and it is only going to continue. It is essentially the new economy where entrepreneurs, SMBs, and Multi-Nationals are in a race to see who can shake up the market place, drive revenues, and become/remain market leaders.
With that said, should you start a business? I can't say for sure as that is up to you. However, if you do, make sure you have a disruptive plan in place from the jump. Do not start a business thinking you'll be able to compete using traditional methods, business models, and techniques. Go in and disrupt the market place, shake things up, challenge the norm, innovate, and be unique!
As always, I'd love to hear your comments and thoughts on this topic.
If you are in need of any business and/or marketing consultation, feel free to shoot me a brief introduction note at: modernbizstraetgy@gmail.com.
Cheers,
ModernManTellsAll
No comments:
Post a Comment