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Everything You Need to Know About Disruptive Startups

Everything You Need to Know About Disruptive Startups

Starting any business is a challenging endeavor. But starting a business that goes against the norm to disrupt an entire market comes with an extra set of challenges. Only a few entrepreneurs are ready for those challenges.They are the industry disruptors.

Disruptive startups act as catalysts in the market by addressing consumer demands that have been ignored by the leading providers of the industry that have failed to deliver or are incompetent to provide.

These disruptive business models create a new niche within an existing market or sometimes create a new market altogether. These breakthrough companies create, refine, reengineer or optimize a product/service to stand out and dominate the market. As a result, these new or innovative methods get a lot of attention. However, true disruptive startups gain momentum slowly, unnoticed by current industry leaders who aren’t aware they’ll soon be replaced.

You’ll see the roots of most successful companies right now stems from disruptive innovation. This separates them from the other players who aren’t meeting the demands of sharp and savvy consumers today.

For example, Airbnb reinvented the hospitality industry allowing travelers to rent a room, home, or condo directly from a person instead of a hotel. This was a disruptive model which reinvented the wheel.

Key traits disruptive companies have in common:

  • Refine the business model before developing the product
  • Low gross margins 
  • Understand consumer trends before they become peak
  • Focus on smaller target markets first
  • Build raving fans first that takes them into the mainstream

Benefits of Disruption

Improved Agility 

Disruptive companies are known for being flexible, innovative, and agile. These disruptors have flat business structures with a shorter chain of command, making them more prepared for what’s to come in the future. Businesses that embrace the principles of disruption will see similar benefits.

Increased Growth Opportunities

You’ll likely spot additional growth opportunities when you’re on the lookout for disruption. Even if the innovation doesn’t qualify as truly disruptive, the new channels, products, or markets can help you scale your business and take it to the next level.

Higher Customer Satisfaction

Every business should have the goal of creating a following of raving fans, aka loyal customers. Dedicated customers are more likely to tell you what they want because they truly love the brand and want more. When a company listens to what their customers want, they create happier customers and discover additional opportunities for disruption.

Developing a Disruptive Business Model

Keep in mind, most of the time, consumers don’t even know what they need or want until it’s presented to them. As a result, disruption requires a lot of research and strategic planning. First, you need to learn and have a deep understanding of the opportunities which the current market providers have been ignoring. And, more importantly, whether consumers would jump on your solution or not.

Once this is done, you’ll need a foolproof strategy to take over the market and crush your competitors. It’s best to take your time putting together the best approach and developing the product or service that will knock the market's socks off without fail.  

Repressed Market Demands

Knowing repressed market demands will help you develop the best disruptive business. Repressed market demands are the needs of consumers who are already using a product or service but are not fully satisfied with it, or it lacks the features to make their life easier.

Innovation is Key

Disruptive business models only exist if there is an innovative idea supporting them. It takes an innovation that can make people’s lives easier at a justified cost to form the base of a disruptive business model.

Take Uber, for example--they came up with a disruptive business model that allows people to find a nearby car using Uber's mobile app when they need a ride. Uber uses the GPS already existing on people’s phones to find them and sends a car to pick them up in minutes. And the trip cost plus tip is charged to the credit card Uber conveniently stores on file.

Get Crazy and Create an Entirely New Market

There’s no denying that creating a new market by reinventing the wheel completely to provide products or services that are new and unheard-of isn’t easy. But when you iron out the kinks and develop the right business model, it’s easier to gain the public’s attention and get the word spreading like wildfire, which plays an essential role in marketing a disruptive startup.

Look for Opportunities in Existing Structures

Rather than completely starting from scratch, you can look for opportunities in existing structures that could make a product easier to use or more affordable. Maybe it’s an idea to streamline the process to decrease the efforts – this will take some creative thinking but can pay off big time.

Leveraging Business Disruption

Creating a business disruption strategy requires a well-thought-through plan of attack. When you’re developing your strategy, be sure to anticipate disruptive forces that will come into your industry so you can plan for and benefit from them. Here are some tips for leveraging your business of disruption:

Identify Your X Factor

When you establish your X factor, you’ll be setting yourself up for incredible growth and stand out like a sore thumb in a good way. By anticipating the changing needs of consumers, innovation and disruption will sometimes just occur naturally. When your focus is on solving problems many may not even know exist, you will always head in the right direction without putting attention on disruption.

Constantly Improve

Always looking for ways to improve or enhance your products or services is crucial to stay in the game. Look for innovation and improvement at every turn because if not, you may eventually be left in the dust. The way to retain your customers is always to do more and provide more than other players in the market.

Customer service and support is another area to keep a close eye on to ensure it stacks up with your business goals or if it needs some fine-tuning or further training. Having the right attitude and culture relatable for your customers will keep them excited to do business with your organization.  

Pay Attention to Business Disruption

When an industry is filled with inflexible businesses, they’re vulnerable to startup disruptions to come in and take over the market by providing more value. So keeping an eye out on changes or shifts in the market is essential to stay in the game and avoid being disrupted.

Scale Carefully 

When you have a well-thought-out plan and vision, you can begin to scale. It’s important not to get ahead of yourself and grow too quickly too soon as it could make you sink fast. Instead of engaging in disruption blindly, start slow, analyze, survey, and get feedback to ensure you’re on the right path. Once you fix any issues, fine-tune your process and have a handle on things, then it’s safe to hit the ground running.  

Don’t Force It

Many companies attempt to have a disruptive style right from the get-go. But the truth is not every successful business needs to be labeled as disrupted right away. To create sustainable growth and a successful company, truly get to know your business identity. When you have a clear understanding of what drives your company, you’re better prepared to take it to the next level. If your product or service is innovative, people will naturally start talking, becoming disruptive naturally.

Optimize Internally

In business, there are always lessons to be learned. If you want to engage in disruption, you must work from within your company. To effectively prepare your business for real growth, it’s important to start disruption internally by analyzing your existing structure.

The Takeaway 

There’s no denying the popularity of business disruption today. Business disruptive innovation has become synonymous with modern technology and progression. Unless you’re constantly innovating and in a way that customers want, you’re going to be in the dust. The stakes are high when starting a disruptive business, with high risk but potentially with high rewards. 

For your disruptive startup to be successful, it takes a powerful vision with a well-thought-out strategic plan. It’s nothing to rush into. Instead, start slow to ensure a smooth process that’s working, then get the buzz out there to get people talking and watch your business take off! 

Do you need help getting your disruptive startup off the ground and in the limelight? Then, contact Awesome CX today, and we’ll show you the way! 



What Is Disruptive Innovation? | Harvard Business Review

9 Disruptive Business Models For 2021 – New Opportunities For Companies |

14 disruptive U.S.-based startups to watch in 2021 |