How to Launch a Business in the Sharing Economy?

As a tech CEO who often traveled on pleasure and business I’ve been Intrigued by the growing popularity of peer-to-peer platforms like Airbnb and Uber, After seeing how Them can turn any house into a hotel and any car into a cab, many entrepreneurs have been hoping to discover the next peer-to-peer market—one they can leverage to enable members to monetize not just their possessions, but also their resources, talents and passions,

Beth Buczynski, author of Sharing Is Good. How to Save Money, Time and Resources Through Collaborative Consumption, credits the growing popularity of sharing-economy startups to a consumer base that’s fed up with corporate domination and has shifted its values toward more mindful choices.

“We’re choosing to support people-minded companies and products that provide real value, prioritize efficiency, slash waste and cultivate solutions.”

“We’re finding this in peer-to-peer models that cut out the middle man and allow us direct access to each other and the goods or services we need.”

Two essential elements of successful peer-to-peer ventures are community and density. “[These businesses don’t] work without people who care, are committed to the behavior and trust each other,” “And sharing is easiest when the space between us is smallest. That’s why cities like San Francisco and New York have become hotbeds of peer-to-peer sharing.”

Think you know what will be the Airbnb of fill-in-the-blank? Relying on independent contractors to deliver the experience and service you need to succeed takes careful planning and execution—much of it different from that of traditional businesses. Whether it’s dog-sitting or car rental or handyman services, the launch of a successful peer-to-peer platform depends on sharp screening, extensive training and streamlined delivery.

“Take the time to look for real problems that need real solutions—problems that can be best solved by communities themselves,”. “Then provide the infrastructure so they can.”

Here are some factors to consider.

1. Start with supply.
While many entrepreneurs assume that identifying (or creating) robust demand is the first requirement of a viable peer-to-peer launch, it’s equally important to cultivate a ready stable of suppliers.

“You need to get the supply infrastructure in place before you can push the demand side, and make sure the market is in equilibrium,”. A company targets prospective suppliers known as “Taskers” through Facebook and Google advertising focused on the company’s core demographic and ZIP codes.

The same principle applies to scaling. Before TaskRabbit considers expanding into a new city, it ensures that the necessary suppliers are there.

“We typically have hundreds of interested Taskers who have signed up for the service prior to launching in a city, and we make sure in every ZIP code the supply and demand are at an equilibrium,” noting that since TaskRabbit captures email addresses and ZIP codes from interested and potential participants, it’s a fairly easy process.

FlightCar seeks public relations and press opportunities, as well as word-of-mouth through referral programs.
Since launching in 2013 in Boston and raising a total of $20 million in venture capital.

Building the peer-to-peer component is all about understanding different ways to market to people so you can feed the marketplace on both sides.
FlightCar seeks public relations and press opportunities, as well as word-of-mouth through referral programs.

Building the peer-to-peer component is all about understanding different ways to market to people so you can feed the marketplace on both sides

2. Conduct extensive screening and training.
As inclusive and socially positive as the sharing-economy ideology may seem, not everyone who applies will be a good fit for your business. Even though they’re not your employees, your providers are the face of your business, so it’s crucial to train them accordingly.

Once recruited, prospective candidates complete an online application with both written and video components, which are then screened and, if approved, forwarded to company headquarters. There, the candidates are reviewed again and, upon approval, receive a confirmation email asking them to log in and build their profile. After that, they must view 12 online training videos and take tests on what they’ve learned.

“They’re on the front line, so it’s all about integrating your culture and what you expect”

3. Foster trust.

Positive online reviews and ratings are also crucial for gaining consumer trust and generating leads. Indeed, transparency is everything in the peer-to-peer world.

4. Keep payments simple.
It’s all about automation, so you’re going to want to streamline it as much as possible.

do not accept cash. “If we were to take cash, how would we handle that cash, and how would we get it back to the company? All of that paperwork can be mitigated through technology today.”

The entire process is paperless and automated. Use deposit on money debit card.

5. Focus on brand-building.

By nature, a successful peer-to-peer service has a built-in community of people who are engaging with and talking about it. Smart entrepreneurs will harness this momentum to develop a more robust brand, enhanced by the availability of compelling content.

create the best high-quality content that’s motivating and makes people feel inspired,”

To your success

Andres Hurtado Rangel

www.mastermind2020.com

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