Yesterday we discussed tips for joining the new sharing economy and its many benefits, including a greener business model. While few organizations will reach the heights of Airbnb or Uber, there are general rules for success that apply when starting a business based on sharing everything from car rides to tutoring skills to vacant apartments.
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But some sharing companies have also been criticized. Here are a few pitfalls to avoid:
Compensate fairly: The people who are providing a service through your company deserve to be paid at a reasonable rate and without hassle. Besides, if you’re inordinately cheap, users will react as well. People want to feel good about providing and receiving a service in this new economy.
Research and communicate insurance issues: Know where you and your service providers stand if something goes wrong. Make sure all parties are well informed of their responsibilities.
Know the local laws: Your service may be perfectly acceptable in one region but a problem for another. Stay abreast of legal restrictions as your company expands and as you move into new cities.
Be wary of abusers: Not everyone appreciates the values of sharing, and there will be service abusers. Make your rules clear, and take action when lines are overstepped.
Don’t be wasteful: One of the big benefits of the sharing economy is the prudent and creative use of resources. Make sure your organization keeps to this spirit, especially as it grows. Stay relevant to peoples’ needs, and make good use of the assets that you have.
Manage data: Many sharing businesses rely on apps that manage your customers’ personal data. Make sure you have a system in place to protect your hard-earned customers.
Remember, not every business succeeds in the sharing economy. But if you have a great idea that’s of value, why not share in this bold new way of doing business?