As we at bemoko are in the process of getting a new company off the ground, I have been reading a number of books on this subject – some good, some bad!

One of the subjects that pops up in these books quite frequently, is ‘market disruption’.  All the books say that the best business ideas are the ones which turn the market on its head and do something radically different to the competition.

One famous example is the Ford Mustang.  In the early 1960s, Ford General Manager Lee Iacocca insisted his engineers built a sports car that would retail for less than $2500.  Many thought this could not be done without cutting too many corners.  No decent sports car retailed for that sort of price. Iacocca stuck to his guns and in early 1964, the first Mustang rolled off the production line with a retail price of $2320.  It became one of Fords most popular cars ever.

Another, more recent, example is ZOPA.  This is a site which bills itself as a ‘social lending’ site.  It disrupts the normal pattern of borrowing money from banks and other financial institutions.  Members of the public offer to lend money for others to borrow, cutting out the middleman.  This is one of those ideas where you kick yourself for not thinking of it – and they are generally the best ideas….  I’ve been a ZOPA lender now for over a year and can’t fault it – it’s these sort of things the internet is ideal for.

On a blatant advertising note, if you like the look of ZOPA and want to join, then please use my recommend a friend link – it means we both get £50 – so is a win-win!

I’m off to the pub where I find most market disrupting ideas seem to come quite easily….