In this post we will talk about micro economy or freelancing economy. We will also touch a few things on perspective of position. This post is all about somethings that we need to think about.
We all have witnessed the change internet has brought to the way businesses are started and operated. It has literally been possible to run a million dollar business sitting at home with no employees physically present. Almost everything has been virtualised, from the order processing to payment transactions, from the office desk to customer support emails. Amid of everything else being virtualised there is still one component that can never be virtualised. This is us people, the mass that visit websites to buy, socialise and have fun.
People have always been the crux of any business be it online or offline.
Talking about recent companies that hit the post Billion Dollar mark recently, we could name a few like Uber – the taxi company with no taxis, AirBNB – the largest hotel chain with no single room to their name etc. Wherever there is a gap in the market, people have taken that gap as an opportunity to create a massive businesses for themselves.
People loved video when it first became easily accessible, however with the massive rise in upload of videos to sites like youtube and vimeo, people started to opt for short videos. Then these short videos became the crux of another billion dollar idea where a few twists like self destruction were added and gave birth to a company called SnapChat. You would probably think at least 50 times to ask a girl out for sex, but someone saw an opportunity there and created Tinder.
It makes me think you could literally create a business in any area because of micro economy. The sky is the limit.
But have we ever thought what makes these businesses very successful. I have summed these into two factors. The first one is people and the second one is the desire or a dream .
Lets dive into these based on the companies above so that I can explain what I mean.
If you drive for Uber – A person has to drive for another person and the dream is to make extra money from your personal car.
If you rent your rooms out in AirBNB – A person has to rent it out to a person, the dream is again to make money,
If you use snapchat – A person sends a video message to another , the desire is to have a momentary fun that will have no way to come back to you to bite.
If you use Tinder – A person will get along with another person of same or opposite sex, the desire is to get straight down to business with no BS involved.
You might be saying, all these companies are great, but whats the point of mentioning them? Everyone knows about them. I totally agree, however have you ever looked into these businesses from a different perspective. The perspective of position.
The perspective of position involves three things.
- What is our position?
- What is the business owners position?
- What is the relation between these two positions?
Before we delve into the perspective of position, let me talk about micro economy or freelancing economy. We all must have heard of websites like freelancer and elance ( now upwork) and so on that used to connect us to the outsourcing fleet. Most times the job used to be in western countries and workers in the third world countries. Things changed when people understood the importance of local outsourcing. You outsource your work with the local community. This started helping people make money on their own. Not a very good alternative to jobs but nice addition. Then came companies like uber, airbnb, etc who went into our car and bedroom and what not.
These companies have been successful because they understood the concept of perspective of position. More importantly they understood the role of a customers position and and a business owners position. This is where the sharing economy was born, I make money and you make money as well.
Yeah, that’s right, most of the companies that are trying to leverage the sharing economy have tricked people to work for themselves rather than somebody else however still sell their hours to make money. This is where I remember Robert Kiyosaki, he talks about 4 quadrants in his book Rich Dad poor Dad. The first one and the second one being employee and self employed who only hold 20 percent of the worlds money. What people are happy about is the fake sense of freedom they get by working for themselves.
Yes you could work as many hours as you want, but can you go over 24 hours a day?
Can you give yourself a raise you feel you deserve, without the company agreeing to it?
Is there really no cap in how much you can earn?
What happens if you cannot go and do what you are supposed to do?
Yes the micro economy is good, the sharing economy has brought so many new avenues to make money, but are they really a substitute that we were looking for ? Also according to the perspective of position, can we position ourselves to make money ?
This is something I suggest you ask yourself everyday along with ” Why do you I do what I do everyday? ”
I would love to know what you thinks. Let me know what you think by leaving comments below.