Disruption is not stupidity!
New Silicon Valley startups have upturned everything former corporations knew about business. For instance, Warren Buffet’s first rule of business is “Never loose money”. Someone labelled that as the number 1 rule, then added a number 2 rule to be “when in doubt, revert to rule number 1”.
Funny enough, guess what big unicorns like Uber and Snapchat is doing, loosing hundreds of millions of dollars yearly of course!
And even going public on top of it all
They are doing this because the money to burn is there. So they can implement the most absurd of business models and stake everything out in the dark for years. My point is not that they are burning money or anything, its that they represent what a startup should be, ideologically.
A startup should be conscious of disruption informed with data. Not disruption for the sake of disruption which many of us have tried and failed in. A startup is like a team of wise men following a new star because new data has revealed a new truth which large corporations can’t see or unwilling to pursue.
This often turns out to be disruptive.
Disruption is not stupidity. I know a fellow somewhere right now that is trying to build another Uber for X just because Uber is growing.
Yes, Uber can afford to run at a loss for years because money is available to them as a resource. Another startup somewhere may not have that free resources, so copying Uber’s method will result in a new kind of tears and gnashing of teeth.
Technologies constantly advance, governments are constantly changing, everything keeps changing. What worked yesterday may surrender a new opportunity just because some company somewhere released a new version of their product with new features.
I can bet my new Gucci shoes that some successful startups will be born because of the new Microsoft’s visual studio 2017 that has just been released. There are probably hundreds of millions of dollars locked in in some features there.
A startup tries to approach old problems in new ways, or just invent new problems using technology and reap profits solving them. This could make us poor Mr. Co-founder. But this could make us rich Mr. Co-Founder.