There’s no better time to join the sharing economy than now. Why? It’s a fairly new market so you can get a head start on what is estimated to become a $335 billion dollar industry by 2025. But before you drop everything and set up your lifelong dream of being an entrepreneur, consider these tips by TX Zhuo (@TXZhuo) from Entrepreneur magazine for your business toolkit. I recently read about Alicia Schaffer who rose to fame by making $1 million a year selling her handmade scarves and legwarmers on Etsy, so it’s no wonder many people are following her lead.
1. Establish trust and accountability
When people exchange funds online, they expect accountability. Your job as a business is to not only provide a stellar product or service, but also provide customers with trust. Follow eBay’s example and not Craigslist’s. A transaction has gone south? No worries, eBay’s got you covered with a method of recourse through its resolution center.
A big part of trust is being transparent. Both eBay and Uber offer post-transaction accountability via ratings and reviews. Your customers are your best allies.
2. Help others identify monetization opportunities
Take a lesson from startups like RelayRides. The company guides people on how to rent out their underused vehicles and offers a platform to make it happen.
3. Build friction-free marketplaces
Know that frustrated feeling when a transaction takes forever or doesn’t fall through? Your odds of succeeding drop sharply when consumers hit a knot.
“Part of what makes Uber and AirBnB successful is that they give their customers what they want -- a ride or a place to vacation -- in seconds.”
4. Make the out-of-reach affordable
What used to only be accessible to the elite, such as interior design, is now accessible to all thanks to new technologies. Laurel & Wolf created a platform where users can upload photos of their spaces with living room do-overs or kitchen remodeling, then the company sends the information to designers ready to promote their talent and earn some extra cash.
5. Make the most of available resources
Have access to a space vacationers could rent, or office space for startups? Desks Near Me connects people that need space with companies that can offer it.
“The foundation of the sharing economy is making the most of available resources.”
6. Capitalize on secondary opportunities
The emergence of all these sharing businesses opens up the door for complimentary services such as background checks done by Checkr. It provides companies with background checks so customers can feel at ease knowing that they are dealing with renters and providers that have passed these checks.
Excited yet? The opportunities are endless, but as you move ahead with your business model, take a look at how large entrepreneurs and startups are tackling this path. You can learn from their trials and successes by researching how they got to where they are now. If you do your homework, you can get there too.
