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Important Things to Know About the Revolutionary “Share Economy”

Important Things to Know About the Revolutionary “Share Economy”

When we were kids, one of the first lessons we learned was to share. In a world where business is under increased pressure to be more socially responsible, easier on the environment and take a more active role in social issues, some businesses are getting the message.

The share economy is made up of companies like Airbnb, Elance, VerbalizeIt, Mechanical Turk, co-working spaces and numerous other services that unite those who have available goods and services with the people who need access to them.

The “share economy” is changing the way people access the resources they need. But it’s not all rainbows and puppies, there are downsides. If you are already participating in the new sharing economy or considering it, you need to know these nine things.

1. It requires companies to make better products

When a product is shared by a large number of people instead of just one person or family, a different level of quality is required. It gets passed around more and is subjected to more wear and tear. Cheap, throw-away products are no longer acceptable.

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2. It’s better for the environment

When you aren’t using something you own, you can share it instead of throwing it away. This saves natural resources. For example, we don’t have to manufacture a whole bicycle for each person who uses a bicycle only occasionally. They can use bike sharing to get access to a bike only when they want it.

3. It destroys jobs

St. Louis cab driver and ride-sharing critic Umar Lee, believes that car sharing facilitated by companies like Uber and Lyft hurts people by taking away their jobs. He says:

Driving a cab in St. Louis is a job that has allowed drivers to buy homes, raise families and send their children to college. Its not a plaything for me. I work six or seven days a week on this job (usually 10-12 hours a day) and that’s the money I use to support my children and pay my bills.

4. You can own less

The share economy lets you have access to things instead of owning them. If you want to use something, you don’t need to own it because access is an option. This saves money and resources and gives you the ability to have richer life experiences because the cost of access is reduced.

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5. It’s hard to regulate

In the traditional economy, regulation by the government is how we ensure safety and quality. When the parties providing and receiving the goods and services are distributed individuals, it becomes difficult to regulate. According to Jeremiah Owyang, share economy expert and founder of Crowd Companies, it’s also difficult to stop:

This is powered on mobile and social; the only way you can stop this tech-based movement is to stop the Internet.

The share economy depends on reputation instead of regulation.

6. It brings economic opportunity to everyone

Those who do not have the means to start a business or job opportunities available to them can make money by sharing their skills. Ryan Frankel, share economy enthusiast and co-founder of VerbalizeIt says:

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The shared economy model allows us to disrupt a traditionally broken translation industry, be a driving force for business internationalization and create job opportunities around the globe for those with a proven and tested skill-set.

7. Company growth is driven by reuse

In the legacy economy, company growth came from selling more products. Growth meant getting more people to consume more goods. Companies that facilitate the share economy grow when their customers share more of what they already have.

8. It’s harder to tax

It’s easy to tax hotels, cab companies and industries dominated by large companies, but when the service providers become distributed, as they necessarily do in the share economy, it gets messier, but not impossible. However, San Francisco recently reached an agreement with Airbnb to collect taxes on rentals in the city.

9. It helps people get access to resources they need

Resources that were previously inaccessible due to a higher cost of owning or purchasing them can made be more accessible. For example, entrepreneurs, who would have previously been limited to working out of a spare bedroom, can get access to workspace in a collaborative environment. Jason Deem, founder of Nebula Coworking, says:

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Coworking encourages innovation and experimentation by fostering a collaborative community of entrepreneurs who benefit from the diversity of skills and connections in the coworking environment. It also minimizes the risk of starting a new business by keeping costs low through the use of shared resources.

How to start participating in the share economy

You may find that you can benefit from both being a consumer and provider of shared resources. Begin by looking at things you own, but don’t use as much as you could. Start with your most expensive assets, such as your house, car, boat or other large, expensive items. Then research your options for sharing those things and making some money doing it.

Next, look at resources that you use. Think in terms of access instead of ownership. Research and understand your options for getting access to those things you want instead of owning them. You may find that you would be better off getting rid of things you own and accessing them instead. Or you may find that you can get access to things, like a boat via Boatbound, that you previously thought were inaccessible.

You’ll get the most benefit by participating on both sides of the sharing economy (consuming shared resources and sharing your unused resources). You might find that you can get access to more of the things you want and spend less money.

Give it a shot, it’s the future, so you might as well see if it will help you, right?

Featured photo credit: Ted Manasa via facebook.com

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Last Updated on October 8, 2020

How to Succeed in Business: 10 Skills Every Entrepreneur Needs

How to Succeed in Business: 10 Skills Every Entrepreneur Needs

Learning how to succeed in business used to be a case of being really good at one skill or area and milking it for all its value. Today, we are fast becoming a “skills economy”[1], driving trends in employment and even the way we approach entrepreneurship.

To succeed in today’s business landscape, business owners and executives need to possess a mix of skills that enable them to stay ahead and adapt to change.

What do you need to do to learn how to succeed in business? Here’re 10 important skills that entrepreneurs need to become successful.

1. Digital Savviness

As the adage goes: “If you’re not online, you don’t exist.” Today’s entrepreneurs need to take to the internet to increase their presence to remain relevant in an evolving business landscape.

Being able to quickly adapt to new technology, whether by utilizing cloud applications, organizing websites using content management systems, or collaborating remotely across the internet, is fast becoming the expected norm for executives.

For businesses, discoverability on the web is becoming a quick litmus test for credibility. Potential customers and investors bank on the first page of Google to make up half their minds about making further transactions with a business. GE Capital Retail Bank found that 81% of retail shoppers conduct online research before buying[2].

How to Develop This Skill

For a start, begin by hosting your website and reserving all of your brand’s handles across social media platforms. While hiring a web developer might sound like the next step, consider first hosting your company’s site on more user and budget-friendly options like Squarespace, Wix, or WordPress.

From here, you can start on some simple search engine optimization techniques that will increase your discoverability over time. Through keyword research, organic content creation, and external back-links, your site will slowly but surely garner more traffic.

2. Financial Forecasting

Let’s face it, many business owners feel that time could be better spent on developing and running the business instead of planning for it financially. However, a financial forecast serves as a roadmap for shaping any kind of business, so make this skill a priority when learning how to succeed in business.

Forecasting and planning your financial goals will give you a clearer idea of resources required. It can also provide assurance to investors as a testament to the thorough research and planning you have done.

However, inaccurate forecasts can lead to livid investors and mismanagement of expenses. When creating a detailed financial forecast, a rule of thumb is to always start with your expenses.

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How to Develop This Skill

Generally, it’s easier to calculate and predict your expenses compared to your revenue, so noting down your expenses is a starting point to benchmark how much you might need to generate in sales to turn a profit. It’s a good habit to regularly update and evaluate how close your operations are to what you have forecasted.

Building a precise set of growth forecasting will take time, but, remember, you are an investor in your own business. You must have confidence in the validity of your business concept.

3. Video Production Skills

The rise of visual mediums and the dopamine boosts it gives to users has long been researched and proven as providing an unfair advantage to businesses that leverage it[3].

If you’re a heavy user of social platforms like Facebook, LinkedIn, and even YouTube, you’ll know that it’s pretty hard to stop once you get started on a binge-watching session.

In fact, video marketing is seeing a non-stop rise in popularity and effectiveness when used in conjunction with social media to drive traffic and boost conversions[4]. According to research, after 2019, 80% of global Internet consumption will be video content[5].

With video marketing becoming more ubiquitous, businesses that fail to leverage the power of video are almost certain to lose out.

How to Develop This Skill

Some ways to get started using videos for your business would be:

  • Creating a series of educational videos that cover useful information for your audiences
  • Live videos interacting with your community at large (these can be shot on your smart phone)
  • Using videos on landing pages to boost your customer conversions

4. Benchmarking Personal Goals to Business Performance

As far as you get into achieving endeavors on your business bucket list, it’s important to remember that being an entrepreneur is just one facet of your identity. Don’t forget why you started in the first place, even when your focus is learning how to succeed in business.

Ambition usually stems from some lifestyle goals you’ve always wanted for yourself and the people you might be providing for today or in the future. Working 24/7 is a surefire route to burnout.

How to Develop This Skill

Money can’t be your only motivation, but look into the positives of how having more financial freedom and time can impact your life. In the short term, involving your interests in your businesses can make everyday tasks feel less like mundane errands. In the long run, your business may also bring you fruitful rewards, including personal fulfilment.

Set realistic income goals to manage expectations for your performance and your company’s revenue, especially during its earlier stages. See how projected growth can align with your personal goals and make adjustments accordingly.

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5. Leveraging Healthy Competition

Some of the best athletes who have spent their careers neck-and-neck with each other have changed the standards in their respective sports. The notion of healthy competition applies to the business world more than it may seem on the surface.

Innovation has always been a key driver in free markets, which were intended to boost economies and provide customers with more choices. Just like the biggest sporting rivals that build on each others’ game, you can use your biggest competitors to hone your strategies.

How to Develop This Skill

Turn a competitive market landscape into an advantageous one by leveraging on long-established systems your business proposes an alternative to. Learn from the mistakes of predecessors once you discover their product or service loopholes.

For example, the Dollar Shave Club’s viral video[6] became a big hit because it aimed at consumers tired of purchasing expensive but low quality shavers from retail giants. Going in second meant they could fill a gap competitors might not even have been aware of.

Solidify your place with your business’ advantage — whether you’re tapping into a new geographical region or unexplored market sector, or introducing a business model that is more viable than others.

6. Honing Pitches to Investors

Stand out in a broad mix of entrepreneurs by mastering the art and science behind a solid investor pitch. Make this a focus if you want to learn how to succeed in business. Get comfortable talking about your ideas and receiving feedback or questions from peers, partners, and advisors before setting out to make a good impression on potential customers and eventually investors.

The phrase “If you can’t convince them, confuse them,” will certainly never get your business funded, especially in front of seasoned venture capitalists who have seen thousands of startup pitches. You should be able to deliver a quick elevator pitch that summarizes your unique proposition for casual meet-ups[7] because you sometimes only have a few minutes to make a good impression.

How to Develop This Skill

Develop your investor pitch deck by highlighting your business’ strongest points, which will vary for every funding round. Create your deck with the investors’ interests in mind, balancing technical jargon and buzzwords.

You can also introduce your diverse team of experts, some proven traction, or the current state of the market to demonstrate profitability and the attractiveness of the opportunity to investors.

Ensure each slide flows into the other to develop a persuasive narrative, utilizing consistent and intelligent design principles to support your content.

7. Developing a Strong Brand Identity

In a world of saturated content and numerous emerging businesses that offer similar service lines, developing a unique brand identity will help you cut through the noise and stand out from your competition[8].

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Define your personal brand to succeed in business.

    Evaluating your brand identity is linked to identifying your target customers, your business goals, a proposed promised land your solution achieves, and identifying values that are aligned with these components. Brand identity serves as a guide to maintaining consistency and creating an image you want your business to be associated with.

    How to Develop This Skill

    Efforts to strengthen your brand identity are closely tied to giving marketing strategies a direction.  By knowing what makes your target customers tick, you will be able to elevate your business from simply being a service or product to a projected brand customers and partners would be happy to identify with.

    8. Automating to Your Advantage

    The need for efficiency is often a general problem new businesses aim to resolve. As you’re learning how to succeed in business, assure that your proposed solution is more efficient than what’s readily available in the market to inspire the need for it.

    Efficiency is often achieved nowadays through digitalization and new technologies. While your product or service may not necessarily be the most innovative out there, you can apply the same automation concept across your business’ daily operations.

    How to Develop This Skill

    Shorten turnaround times and conversion rates by investing in small tools for automation where you deem fit. While it may come out of your pocket in the early stages, evaluate the advantages and benefits of automating certain processes. At our office, we’ve tried using collaborative apps like Workplace by Facebook, Slack, Asana and a few other popular apps to reduce human error and friction.

    9. Managing Millennials

    Your team plays an integral part in whether your business will accelerate at breakneck speeds or be dragged down by dead weight. Hence, it is imperative to be selective and strategic when choosing your team.

    In leaner, small business teams, the addition of every new teammate can impact how your organization culture evolves.

    Today, learning to manage millennials has become an increasingly sought after skill as well due to the increasing proportion of them in the workforce[9]. Some brand them as strawberries that are easily bruised, and others loath their need for “meaning” and wearing T-shirts to work.

    How to Develop This Skill

    Naturally, there are many misconceptions surrounding millennials, and various businesses would do well to leverage their unique skills.

    A couple of ways to manage a millennial team include:

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    Encourage a Flat Team Structure With Open Communication

    Maintain clear professional lines between supervisors and subordinates, but keep communication channels open to ensure no negativity festers.

    Offer Constructive Feedback

    Baby boomers are well known for their straightforward approach to delivering feedback. Millennials, on the other hand, don’t always take feedback in a form that could be construed as deep criticism.

    Being constructive with feedback ensures that you don’t coddle millennial workers but also tell them the things they need to hear.

    10. Maintaining a Network of Connectivity

    When learning how to succeed in business, instead of proposing a model that’s disruptive to an industry, build connections with other companies that serve the same target customers, as long as they provide a different service.

    By creating partnerships, both you and other businesses thrive simultaneously.

    Sole market disruption isn’t always the best strategy to take. Not everybody has the opportunity, bandwidth, or financial capacity to dominate and monopolize a marketplace. See your potential for integration into other businesses and services as a good opportunity for co-collaborative marketing efforts with shared campaigns, split costs, and a strengthened customer database for everyone to tap into.

    How to Develop This Skill

    Regardless of the stage your business is in, never stop looking for ways to expand your network. Keep in contact with mentors you can look to for valuable industry advice that can help you avoid pitfalls and costly mistakes. Strengthen brand awareness by attending cross-industry events and casual meet-ups to open your business to reinvention and innovation.

    As the African proverb goes:

    “If you want to go fast, go alone. If you want to go far, go together.”

    Collaborating will get you where you want to go quicker and gear you up for further growth.

    More on How to Succeed in Business

    Featured photo credit: Tyler Franta via unsplash.com

    Reference

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