Will your small business be the next digital disruptor?

The digital world today makes it an exciting time to be a small business. Digital has put the power of the global marketplace into the hands of almost any small business or entrepreneur – if they understand the business models of disruption.

Even if you have only the most basic web and digital skills, don’t be deterred (if you still feel you are, you might like my recent post: Think your business isn’t the digital type? Think again!)

If your business is in its early stages, carefully crafting the right business model is a good place to start being disruptive. Here are my picks of the most exciting digital business models that are taking even basic ideas to market in a big way.

On-Demand Business Model

This is just what it sounds like – giving customers exactly what they want, where and when they want it. It’s the ultimate in delivering on a marketing promise. Our mobile lifestyles have almost made this a standard. This is the model of companies like Uber and Deliveroo, a UK start-up that delivers food to customers from any restaurant they choose in about 30 minutes.

In Spain, we have companies like Wifivox and EasyMifi that deliver short-use wifi devices to travellers – booked online, then delivered directly to their hotel or rental property.

The On-Demand model really relies on matching superb logistics with an unmet need. Consider the value your start-up or small business provides and if matching it with superb logistics can take your business to a disruptive level.

Freemium Business Model

We all experience this: the chance to try a digital product and then after a certain time sampling, you have to choose to buy or subscribe. Many apps follow this model – last year, Freemium apps drove 71% of Apple AppStore revenue, up from 50% in 2012.

The app Headspace is one example. It’s a mindfulness and meditation app whose developers have been clever enough to recognise that meditation is a habit that takes a little time to build. So they give their users 10 sessions for free before the user has to subscribe.

In the Freemium model, it’s important that your digital experience is seamless and easy, delivering real value in those sampling stages, so your user will want to come back for more.

I’m sure we could all name a dozen other apps that work the same way. Dropbox and Spotify are two common ones. Did you know that 80% of Spotify’s paying users started as Freemium customers? Have you had good experiences with any others? Share with us below!

The Sharing Economy Model – or “Access Over Ownership”

Our world has become completely connected thanks to broadband internet and mobile technology. Connectedness is normal, which means that businesses which leverage sharing and pooling to create a more economical offering are going to do well.

AirBnb is an example of Access Over Ownership, but others are emerging. Uber now offers pooling, letting its riders travel for a cheaper fare if they ride with others.

The currency exchange service TransferWise enables individuals in one country to trade currency with an individual in another, thus saving the bank exchange rate fees. They also offer a service to help businesses expand globally and avoid the burden of exchange rate loss.

According to a report by PwC, this business model is set to explode in the coming decade: from $15 billion in revenues last year to $335 billion by 2025. Does your small business have something to share?

Share your business model challenges and ideas on disruption with me below and follow the chatter on Twitter this week with me, @santiagosolanas