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Entrepreneur’s Top Tips for Cashing In on the Sharing Economy

It’s known as the sharing economy, and it’s been gaining traction since the mid-2000s. While a lot of start-ups and more established businesses have been disrupting markets around the world by tapping into the sharing economy, one of the most well-known success stories is Uber.

Nadine Todd

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There are many forms of the sharing economy, but for our purposes let’s focus on one very specific aspect of it: Where consumers (that’s you and me) are paying to access someone else’s goods or services (in Uber’s case, people with cars who want to share their services, for a fee).

Related: 5 Apps Every Entrepreneur Needs to Stay Organised

What’s Uber’s role?

It’s a ride sharing app. They recruit drivers, vet them, add them to their app, and as the consumer you download the app, add your credit card details and find a driver on your smartphone.

For the consumer it couldn’t be simpler. And that’s Uber’s magic. In the most simplistic sense possible, it’s the conduit between people who have cars, and people who need rides. The business matches a need with someone who can fill that need.

Why it’s working

Let’s look at how well this has worked for Uber: What started out as Ubercab five years ago in San Francisco is today a multi-national business that operates in 300 cities across 58 countries. There are more than one million drivers working on the platform, and conservative estimates value the company at US$40 billion.

Uber is the current poster child for a disruptive innovator. The lesson here is that if you want to make a mark in an established industry, you have to be willing to disrupt the market. And that’s certainly what Uber has done.

The textbook definition of disruptive innovation is generally credited to Clayton Christensen, the author of The Innovator’s Dilemma, who says that a disruptive innovation creates a new market and value network that will eventually disrupt an already existing market and replace an existing product.

Related: Apps to Help You Write a Business Plan

The incumbents generally can’t change their business models quickly enough, and so the new guys on the block move up, and eat into the already existing market share. Cue Uber and clashes across the world between the disruptor and established metered taxi drivers.

What we can learn from Uber’s business model

Travis-Kalanick,-C.E.O and co-founder of Uber

Travis Kalanick – CEO and co-founder of Uber – Photograph by Art Streiber

1. Even big companies start small

As we’ve mentioned above, just five years ago this global company was a four-person team in San Francisco. This is not a unique story. Google and Facebook were started from a garage and dorm room respectively.

Innovation and disruptive ideas can take shape anywhere, and they don’t need to be backed by large balance sheets to make waves in the market.

2. Great businesses solve a problem

The most successful start-ups start by zeroing in on a very specific problem, and then fixing it.

One of the founders of Uber wanted to be able to push a button and get a ride to wherever he wanted to go. That’s it. The app and business grew from this seed.

3. Give people a better, cheaper and more convenient option

Consumers are driven by convenience and price. If you can offer both, you have the ideal business model.

Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.

Entrepreneur Today

The Start-up Hatchery And Greater Tygerberg Partnership Launch Innovative Pitch Competition For Bellville Solutions

Entrants are required to submit their ideas in a 30-second WhatsApp video to 082 936 7544 before 24 May 2018.

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The Greater Tygerberg Partnership (GTP) and start-up incubator The Startup Hatchery are launching a pitching competition to surface innovative ideas that, when implemented, could lead to the improvement of Bellville in Cape Town’s northern suburbs. The winning idea will receive a package of business incubation, mentorship, business development support, marketing and branding collateral, legal and intellectual property advice and other prizes, including R5 000 cash.

Launching on 14 May 2018, Innovate Bellville 2.0 is open to new businesses that have been operating for six months or less, who are developing new innovative ideas that could improve public transport, create jobs, create inclusive public spaces, address homelessness, improve health and wellbeing, manage waste, facilitate mobility, attract and retain investment and regenerate the Bellville urban centre.

Related: 3 Actionable Insights To Make Your Investment Pitch Perfect

Innovate Bellville 2.0 forms part of the GTP’s living lab approach to the regeneration of the Bellville CBD, says Warren Hewitt, CEO of the GTP: “We want Bellville to be a test-bed for new ideas that can help us to build a vibrant, prosperous, inclusive city region. Innovate Bellville 2.0 falls directly into that approach. We’re looking forward to seeing the ideas that emerge, and seeing the winning idea implemented in a part of our city that stands on the edge of an exciting future.”

“Innovation starts anywhere,” says Tania Cunningham, Chief Digital and Marketing Officer for The Startup Hatchery, “but we were very excited at the prospect of focusing on finding innovative ideas that could bring about real change to a defined geographical area. Innovate Bellville 2.0 will offer the winning business a solid start in life, with a chance to see their idea become a reality in Bellville.”

Entrants are required to submit their ideas in a 30-second WhatsApp video to 082 936 7544 before 24 May 2018. Twenty semi-finalists will be selected from the WhatsApp pitches, who will each receive training and a pitch deck. From that group, a group of eight finalists will then be selected and invited to pitch their ideas to judges during a pitch event on 7 June.

For more information, contact pitchtank@thestartuphatchery.co.za

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Entrepreneur Today

Silulo Business Incubation Is Changing The Future Of Entrepreneurs

Silulo Business Incubation is a unique incubation aimed at empowering and assisting upcoming entrepreneurs.

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Silulo Business Incubation

Launched in April 2018, the Silulo Business Incubation is a unique incubation aimed at empowering and assisting upcoming entrepreneurs to grow not only their businesses but also their confidence in the business space. The Incubation offers office space, boardrooms, training and conference rooms as well as eighteen shared office space for entrepreneurs in and around Cape Town.

Founder and Director, Mr Luvuyo Rani says: “We have always had a vision for this type of centre – a one-stop-shop where all entrepreneurial needs are catered for but our problem was always funding. With hard-work and dedication, we were able to make our vision a reality, which is exactly what we want to teach and instil for our entrepreneurs.”

The incubation will also offer networking sessions for aspiring entrepreneurs twice a month for two hours. This idea is to offer business insights as well as networking opportunities for entrepreneurs in and around Cape Town. Entrepreneurs will have the option to become members of the SBI Network where they are able to attend networking sessions of their choice. All networking sessions will cover different topics and training manuals will be offered after each session.

Related: Silulo Ulutho Technologies: Luvuyo Rani

Rani continues:

“The main challenge when it comes to this type of business is infrastructure and funding. Silulo is a pioneer and it can go anywhere, there are no boundaries in business. This is a flagship store. We want to replicate this in every province. Silulo’s success lies in partnerships and our business has a passion for empowering.”

Rani, a former teacher, together with his brother Lonwabo Rani started selling computers from the boot of a car more than ten years ago. Silulo Technologies now has 42 branches in three provinces: the Western Cape, Eastern Cape and Kwa-Zulu Natal and 22 franchise stores, some of which are owned by former Silulo employees.

Director and Co-founder, Lonwabo Rani says: “My brother always tells us to think about the bigger picture. It was that bigger picture that kept us going. Back in 2006, what you see today is exactly how it was when we envisioned it.”

About Silulo:

In 2017 Silulo reached a total of 35 000 students trained since inception. It trained 65 students through MIC SETA in both the Eastern and Western Cape.

Related: 10 Young Entrepreneurs Under 30 Share Their Start-Up Secrets

Rani and his two directors remodelled the business in 2017 by offering a walk in cellphone repair service (including the service of leading brands such as Apple, Samsung and Huawei) at one of the Silulo branches in Khayelitsha.

Rani, who was part of the Team South Africa to attend the World Economic Forum in Davos Switzerland in 2018, has received numerous accolades for his social impact business.

He was also awarded a Schwab Foundation Social Entrepreneur of the Year award in 2016 among his many accolades.

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Entrepreneur Today

DJ Sbu Opens Academy To Develop Hustlers

DJ Sbu also known as Sbusiso Leope has partnered with the 3Sixty Financial Services Group (360 FSG) to positively impact thousands of young lives and families in South Africa with his own school, a learning academy. Aptly titled The Hustlers Academy.

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DJ Sbu also known as Sbusiso Leope has partnered with the 3Sixty Financial Services Group (360 FSG) to positively impact thousands of young lives and families in South Africa with his own school, a learning academy. Aptly titled The Hustlers Academy. Leope intends to develop the minds and the ability of thousands of young hustlers in the country and change lives.

The Hustlers Academy is an independent privately funded economic empowerment project spearheaded by Leope to address the overwhelming lack of jobs and incumbent graduates into the system on an annual basis. The 360 FSG is a well-established financial services company with a disruptive strategy that offers clients more benefits for their rand. The partnership represents a meeting of the minds and the hearts for the development of opportunities for young South Africans.

“We will train and educate young hustlers to either be entrepreneurs or corporate hustlers. Our training programme and academy curriculum will produce the best sales force this country has seen and develop the minds of Hustlers to understand how the world works and how to stand out. In partnership with 360 FSG we will develop entrepreneurs who start businesses and employ teams of hustlers within an 18-month period. ‘The Hustlers Academy’ will take in Hustlers for training nationally in multiple provinces providing a practical and theoretical intervention in the lives of those who are skilled and restless.” Said Leope.

Group CEO and Chairman of 360 FSG, Mr. Khandani Msibi is confident that ‘The Hustlers Academy’ will play a game-changing role in developing and changing the way corporates are structured in providing a ceiling for employees as far as earnings are concerned.

Related: 3 Start-up Funding Tips To Help Launch Your Company

“Our approach to empowerment is based on sustainability for the Hustlers who make it through the academy. We will develop people mentally as well as financially and make a serious change in their socio economic position. DJ Sbu has the potential to influence a generation and he shows this on a daily basis with his determination to succeed. We are matching his determination and passion for economic empowerment with our backing of the ‘The Hustlers Academy’project. We look forward to changing thousands of lives with a long term impact.” Said Mr. Msibi

‘The Hustlers Academy’ is active and running a pilot group of Hustlers through its programme in Johannesburg. The academy welcomes registrations on its webapp www.hustlersacademy.co.za. Starting from 1st June 2018 The Hustlers Academy will be taking in 50 – 100 hustlers per month.

Leope goes on to say. “In 2013 we started an educational company called Leadership 2020 which was designed to develop Africa’s richest asset – its people. I’m excited that we are able to realise our vision before the year 2020 with the launch of this initiative. ‘The Hustlers Academy’ will grow to add multiple courses, mentorship, and accreditations and even lead people to formal education if they so wish. This academy will make a tangible socio – economic difference in young South African lives. ‘The Hustlers Academy’ has no registration fees and requires no learning fees. It requires you, your time, your commitment and there’s #NOVILAPHING  – Lazy people will not make it.”

Registrations are online at: www.hustlersacademy.co.za

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