Harvard professor Clayton Christensen coined the term disruptive innovation to describe “a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors.” An example of disruptive innovation is the cell phone (disruptor) displacing fixed line telephony.
There’s never been a better time to be a disruptive innovator. If you have a good idea, the barriers to market entry are shrinking. Business innovations like crowdsourcing and outsourcing provide cheap access to technology development, marketing resources and administrative support. You don’t need massive resources to invest in hiring employees to perform these business functions for you – you can design business graphics, develop an iPhone app or outsource your IT function using the new business models.
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Starting a business nowadays is like playing roulette; your particular brand might hit in just the right spot and become a jackpot or you could lose a lot of your money in an instant. The problem in today’s weakened economy is that very few are willing to invest in a new name. No one wants to take the risk anymore so you end up struggling. However, if your dream really is to run your own business then there is another way; buying into a franchise can give you an already well-known brand name and the chance to get the experience you want.
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