The growing popularity of the sharing economy is no secret. This socio-economic model, where one can rent or borrow other people’s physical or intellectual resources, offers many advantages for end consumers, including convenience, low-cost, and a strong sense of community.
In fact, PWC reports that 72% of individuals who tried the sharing economy say they could see themselves being consumers in it in the next two years.
This model’s benefits aren’t exclusive to consumers. Entrepreneurs tapping into the peer-to-peer economy enjoy easier access to basic entrepreneurial needs.
Here are some challenges the sharing economy eases for entrepreneurs who want to make it big.
Finding the Right Mentor
People who want success understand a mentor is necessary for educational and professional support while their business is growing. A survey done by USPS showed that 70% of mentored small businesses had a survival rate double that of small,
But connecting with a potential mentor is no small task. Approaching people with the right words to inspire help and not seem needy is challenging. Also, when you do ask, successful businesspeople don’t always have spare time for mentoring.
Collaborative platforms like MicroMentor remove the discomfort and the need to deliberate over how to approach someone, since they pair young entrepreneurs with mentors who are already willing to help.
Cutting Down Operational Costs
Unless someone lives under a very large rock, it’s well-known that money isn’t free-flowing for startups and budget tricks are always welcome.
Enter some economical sharing platforms. WeWork provides shared workspace and office services for startups, small businesses, and freelancers, and helps entrepreneurs realize their dreams without the cost of renting an entire office. These collaborative workspaces offer a major plus by providing an environment filled with like-minded self-starters, where entrepreneurs can easily network and make necessary connections to grow their business.
Outsourcing platforms like UpWork and Freelancer allow you to connect and collaborate with independent professionals without the expenses associated with a full-time employee. These platforms grant you access to global talent, and free you to focus on developing your key products.
Other popular platforms, such as Floow2 enable organizations to save money by renting essential office equipment instead of buying it. Conversely, businesses can rent out their unused assets and generate extra revenue.
All startups need capital to operate. However, securing funds is challenging and stressful.
Crowdfunding platforms like Kickstarter, Peerbackers, and Indiegogo allow businesses to fund a project or venture by raising monetary contributions from many people. Crowdfunding allows you to get necessary funding while providing market exposure with target audiences at the same time. Additionally, there are no loans to repay, removing a huge burden from entrepreneurs’ shoulders.
Entrepreneurs can benefit highly from the sharing economy. It enables you to cut costs and save energy to focus on what you are good at, making success a bit easier.
Are you an entrepreneur that benefited from the sharing economy? Let us know how in the comments below!