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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Photo: Amiad Soto, CEO and co-founder of Guesty; Source: Courtesy Photo
Photo: Amiad Soto, CEO and co-founder of Guesty; Source: Courtesy Photo

Startups are emotional roller coasters. One minute you feel like you’re at the highest point, changing the world and the next, everything seems like it’s falling apart and you’re rapidly going downhill screaming from the 90 degree drop.

From roller coaster rides to bungee jumping, entrepreneurs feel the same rush as adrenaline junkies. They are risk-takers and fearless in the simplest terms.

For every entrepreneur, launching a startup starts by creating something out of nothing. This creation is built on one’s passion, and its conception begins when the individual lists their ideas and prioritizes them in order to stay focused on their goals.

I know one thing for sure—every startup’s success is only promising if they can stand out amongst the crowd, because just like you there are thousands of budding entrepreneurs who believe they are the sole genius of their ideas.

 

Launching in the Sharing Economy

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

In a nutshell, the sharing economy is a socioeconomic ecosystem built around the sharing of physical resources and products. It includes the shared creation, production, distribution, trade and consumption of goods and services by different people and organizations. It is reinventing not just what we consume but how we consume.

Startups such as Airbnb, Uber and Lyft who represent the epitome of the sharing economy, can turn any house into a hotel and any car into a cab, and many entrepreneurs have been hoping to discover the next peer-to-peer market they can leverage to help members monetize their possessions, talents and passions.

According to The Next Web, the sharing economy is here to stay and “taking into account all the buzz about the sharing economy, one cannot argue that this year we’ll see a dramatic change in this industry, how it works and what it means.” Many entrepreneurs are either ‘piggybacking’ onto existing peer-to-peer startups or they’re creating their own following the same trend.

 

Cornering the Peer-to-Peer Market

Whether your startup is building the latest app, walking dogs or a Mr. Fix It the launch of a lucrative business relies upon extensive research into the community, trust, training and efficient distribution. So, if you’re planning on being the next Airbnb, take these important steps into account.

 

  • Supply and Demand

    Many entrepreneurs focus primarily on identifying the demand when launching a collaborative startup and neglect what is also important- to make sure the supply of the product matches the demand it requires. There needs to be a harmony between supply and demand.

    For example, if you have a business that rents owned cars to travelers from the airport, but there isn’t a sufficient amount of vehicles to actually rent out, the concept will fall short. By taking advantage of publicity, press release distribution, social media and by word of mouth one can cultivate the supply that they may need (in this case, cars).

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