Disruptive Businesses

Shaking Things Up

Disruption for disruption's sake isn't a sustainable business plan. Blowing up an industry without a clear path to a better new way isn't helpful at all. At Herndon, we take a studied approach to our new ventures in this segment. We keep cautionary tales in mind as we craft our plans, we are, after all, looking to build valuable companies.

As an example, look at the aftermath of the breakup of AT&T. The end of their monopoly opened the door for enormous disruption in the communications field. A slew of new companies arose, and the competition drove long distance prices to the bare minimum. It was great news for consumers, but none of those new companies are still around today. They disrupted without a long-term vision of the consequences, and ultimately put themselves out of business along with the old AT&T.

At Herndon, our goal is to disrupt inefficiencies within an industry, not try to remake it from the ground up. We look for better ways to utilize existing business infrastructure, improve processes and create additional profits. Click on the link to read about one of our portfolio companies in the disruptive segment.

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