How to Successfully Launch a Business in the Sharing Economy
The workforce as we know it is changing. America is now home to over 27 million business owners, a record high for entrepreneurship in the nation. Much of this entrepreneurial trend is being driven by the millennial generation. Millennials are “starting more companies, managing bigger staffs, and targeting higher profits” than their parents’ generations, according to one study cited in Fortune magazine, which has dubbed them the “Millennipreneur” generation.
Business ownership aligns itself with the Millennial generation’s values of freedom and success. By starting businesses earlier, this generation is setting itself up for financial success. Modern technology is making it easier than ever to start a business from the comfort of your own home. This has led to something that experts have dubbed “the sharing economy” — or, as defined in Information Age, the act of “sharing products, goods, ideas, and services, usually online.”
The sharing economy has led to the emergence of new business models. People are now able to earn money by renting their homes to strangers on Airbnb, for instance, or by offering a service, such as pet sitting and in-home boarding. The options are endless for finding creative new ways to make money. It’s no wonder research has shown that most people who are aware of the sharing economy feel optimistic about its future!
Here’s some expert advice from marketing pros Stokhaus Media to those entering the small business world via the sharing economy.
Do Your Research
You’re eager to dive into running your new business — and you should be — but first things first. If you already have an idea for your business, it’s important to research its viability, and this involves market research. Understanding the market for your product or service before moving forward is important. Some questions to be answered during the market research phase include:
Who is the intended audience for your product or service?
About how large is the intended audience? What percentage of the audience is already served by another business?
What are the demographics of your intended audience, including income level and employment rate? Where do your customers live?
Does your product or service provide customer benefits or solve a problem?
Do other companies already offer similar products or services? How much do they charge?
What competitive advantage can your business provide over similar companies?
Getting answers to these questions will help you now and in the future when it comes time to draft a business plan.
Creating an At-Home Workspace
Before you start a business, it’s important to make sure you have the right equipment and an optimal home office setup. This includes a computer with any required software that you might need to successfully run your business. For example, invoicing, project management, and accounting software can save you time and money when you’re first starting out.
The layout and design of your office is also important, including essential items like a desk, a filing system, shelving, and a comfortable chair. If you anticipate having clients or customers coming to your office, be sure you allow space that’s adequate for a meeting area, which will also require at least one chair and a coffee table. You’ll be spending most of your working day in your home office, so be sure to make it inviting and inspiring; paint the walls with your favorite color and, if possible, bring in as much natural light as possible. Accent available spaces with indoor plants, too, which can actually improve your concentration and productivity.
Finally, you’ll want to establish some firm boundaries for yourself, such as setting strict office hours and avoiding distractions while you’re working from home. Having a set schedule helps hold you accountable (and keeps others in the household from distracting you while you’re working).
Consider setting up your home office in a separate room to allow for more privacy and focus while working. Better yet, set up shop in your basement with a renovation. A basement project is usually a big undertaking, which makes upfront planning essential, planning that should address the purpose of the upgrade. Hiring an experienced contractor is essential, and you’ll want to include them in the earliest planning phases to ensure you both are on the same page and that they adhere to your terms during the process, preventing potential headaches during and after the remodel. Remember to save all receipts and invoices to quantify the renovation, as such upgrades can boost your home’s value.
How to Grow Your Business
Once you’ve set everything up, created your home office, and determined your strategy for success, it’s time to focus on serving your clients. The first step in this process is finding clients and the second step is growing your business.
Finding Clients. There are many places to look for clients as a new business owner. A few options include asking your friends and family, joining local networking groups or Facebook groups, or placing affordable advertisements on Google and social media.
Growing Your Business. Once you’ve gathered a few clients, you can grow your business through referral incentives, sales and promotions, and email campaigns. Proper marketing is essential for growth, so team up with professionals like CoGrow Marketing to get your name and message out there.
Mistakes to Avoid
Of course, no business article would be complete if we didn’t tell you a few common mistakes to avoid. When building your business, it’s important to have a plan. Business plans are tedious and not fun to write -- but they exist for a reason. Things will run smoother if you’re focused on your end goals and have an action plan for getting there. You will also want to put together a business budget. If you ever want to look for a business partner or apply for grants, these documents will be invaluable.
As you begin your journey, make sure you understand the various aspects of your business obligations. For instance, if you’ve only been on the receiving end of payroll, processing the other side of things can leave you with a lot of questions. Defining payroll involves things like figuring net pay, handling withholding, and reporting taxes. Even if you have a solo venture, ensuring you understand your responsibilities is the best way to avoid problems down the road.
One crucial mistake is overlooking the creation of a business website. Especially given that the sharing economy relies on the internet, your website makes it easy for prospective clients to find you amidst the sea of competitors. Best of all, DIY services like Squarespace and Wix allow you to build a website without paying an expensive designer.
So, what are you waiting for? It’s time to launch that business idea. Follow the above tips to help you get started, and call on Stokhaus Media for all your digital marketing needs.