What's the Issue with Disruption and Business Models?
Everywhere we look new business models are springing up. Uber is one of the world's biggest taxi services, but doesn't own any taxis. Apple owns no songs but is one of the largest retailers of music. Airbnb owns no hotels but is one of the world's largest lodging companies. But what has made this trend so strong now when it hasn't been a possibility in the past? Disruption!
As our world becomes more connected through digital channels, new opportunities are opening up. Companies that have been industry leaders for decades may be out of business within a matter of years. Over half the Fortune 500 companies in the year 2000 have disappeared, according to the World Economic Forum. New businesses who are taking advantage of this "fourth industrial revolution" and the opportunities it opens up are seeing significant gains.
But what if an entrepreneur has an idea that they would like to see brought to fruition? To take advantage of disrupted markets, it's vital to not only have an original idea, but also a good business plan to put it into action. A business plan provides you with direction when you're first starting out. It also helps keep you on track when other ideas may seem more enticing, but would prove difficult to achieve in the long run.
Business plans also allow you to keep track of your goals. When working in a disrupted market, knowing what you're trying to accomplish can make a big difference in the level of success you see. From knowing where you need to be in terms of finance and profit to marketing your company effectively across digital channels, a sound business plan helps you keep your eye on the prize.
Disruption opens the door of opportunity to a range of business models, but businesses that take action without a strong business plan in place often find it very difficult to keep growing and realize success. But what if you don't have significant experience in creating a business plan or aren't sure how to create one for these new business models? At AccountRely, we provide a wide range of business services beyond accounting and tax preparation, including creating business plans made on these new models. Please feel free to contact us today for more information.