Launching A Startup In The Sharing Economy – What You Need To Know

There are those well-known commandments to follow when launching a startup, but within the sharing economy it’s something entirely different.

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  • Human Connection

    Technology has essentially made us ‘lazy’ conversationalists and we tend to interact less. For many, the sharing economy is a saving grace, making the world smaller, more intimate and more about convenience and affordability.

    You could be sharing with your next door neighbor, this is what the sharing economy is all about- bringing back the ‘community’ feeling. Even though many of these types of startups are cheaper and more convenient, the element of human interaction feeds it’s success.

  • Screen and Train

    The sharing economy is all inclusive and positive, not every potential person who applies is a good fit for your company. all your employees and suppliers need to be trained respectively.

    For example, Airbnb offers a number of features that help build trust and grow a transparent community marketplace, including our secure messaging system, user reviews, the Host Guarantee, and Verified ID.

  • Encourage Trust

    Trust is often earned and it’s not easy to gain it using an online platform. But there are ways to encourage reliance via positive reviews and ratings. It works like the domino effect, if you have a good reputation online it’s likely that you’ll gain trust from your consumers which will generate leads. The sharing economy only works because of transparency.

  • Boost your Brand

    A sharing economy startup is nothing without its community, and if they aren’t engaging and talking about it they can forget about achieving success. Smart entrepreneurs should take hold of the energy amongst the community and create a more steady brand, strengthened by irresistible content. Create content that speaks to your audience on a personable and relatable level.

    As a startup in the making, funds may be limited and the cheapest form of brand building is through your words. Content becomes your vehicle to convey your brand’s message. If your content is not clear and message not well-formulated, you will undoubtedly struggle to succeed.

 

There are profitable paths and businesses that can be gained through collaborative consumption, even though the new trend will mean challenging old revenue streams and business models. Are you ready to take on the sharing economy?

 

This article has been edited and condensed.

Amiad Soto is the CEO and co-founder of Guesty. He loves travelling and extreme sports and working on cool ideas. Connect with @guesty on Twitter.

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