Article written by: Bernhard Schroeder
If you seriously want to be an entrepreneur, quit trying to think of random ideas, and instead, focus on large markets of people and several industries that are ripe for disruption. It’s not an idea that will disrupt these industries. It’s about solving problems consumers are having that current companies can’t or won’t address. You think Gillette wanted to reduce the price of its razors? No. So, Dollar Shave Club did it for them and now Gillette is scrambling and Dollar Shave Club is exploding.
Here are seven industries you should investigate.
1. Financial services
Many aspects of this industry need to change so that investing becomes a more inclusive, transparent and a straightforward process for all of us. Millennials have no clue about investing even though they are beginning to save more. Startups like Acorn, Robin Hood and others are trying to figure it out while traditional brands like Morgan Stanley are trying to figure out how to connect with Millennials before they become irrelevant.
The healthcare industry is an industry that is certainly ripe for disruption. Do we really need Urgent Care clinics provided by big hospitals for little things like a sore throat, stuffy nose or upset stomach? With the further proliferation of video communication, the ability to “bridge the gap” between patients and doctors has become so much easier and efficient with nurse practitioners. CVS is already offering their 10-minute clinics for simple health care needs. What could Target oNer in the future?
3. Fashion clothing
Fashion clothing will always be a disruptive industry as styles and tastes change. However, there is always an opportunity for new businesses and startups to create and bring in disruptive solutions that minimize customer effort. We have unlimited sources to buy fashion products but it’s not always easy. What if someone “digitized us” and knew exactly what our size was? Could we then, for example, have clothes brought to us by an online service that “knows” which clothes will Kt us well across all If fashion brands? Could we move seamlessly across websites and see highlighted clothes that matches our exact dimensions? Whoever solves this problem will build an amazingly powerful company. And they may not even have clothes. Think Zappos.
Every business and human needs insurance. However, the rising generation of Millennials don’t really understand insurance. They definitely have no brand loyalty. But they have started researching and comparing more options online for buying insurance directly from the companies rather than contacting traditional agents. The online-instant-directcheap policies can surely bring a revolution in Insurance, especially among the Millennials. Do you really need an office, an agent and an annual customer calendar to create insurance products or services?
5. Legal services
The legal industry remains ripe for disruption. Continuing to find better, more cost-sensitive ways to provide legal services to individuals and business owners is going to be a huge industry disruptor. Even though Legal Zoom has offered their services online for years, they have not built their brand effectively with Millennials. The opportunity in this industry is for niche services that can be simplified which can greatly reduce the cost.
6. Moving industry
This $12 billion industry is overdue for disruption. With over 65% of moves staying in the local county, what local or national brand do Millennials trust? None. No real brand awareness, service, and prices that are all over the place. There is an opportunity here for a company to come in, professionalize the industry, provide standard prices, high-quality service and utilize reviews to demonstrate their brand value. Who will disrupt this industry?
7. Home furnishings
This industry is already being disrupted. As furniture shopping moves online, consumers are less interested in “furniture companies” and more interested in quality commodity products like mattresses. Casper is an online mattress company that has literally exploded in sales. Even though Amazon and Wayfair seem like formidable furniture competitors, online consumers seek the best and will move directly to the brands that give them high quality and a fair price. If you want to create a company, just look to large industries that seem to be stuck in the mud in terms of innovation and services and compare that to large customer segments who are frustrated. Solve that frustration and you just might create something amazing. … Read more about what Bernhard has to say on his website and follow him here on his LinkedIn.
Read more about what Bernhard has to say on his website.