Hi all, this is my first post.
I was just sitting down watching a TEDx video when I got an insight that I wished to share. I have been sitting on a couple of ideas for different businesses, but I was comfortable in my job as an investment banker, so the drive and hunger that I think entrepreneurs need just wasn’t as strong (to be honest my motivation is to create the product so I can use it or get a friend to stop complain rather than anything else).
Anyway my insight- I think the most revolutionary ideas just update already existing systems. For instance take Uber, people have been car pooling since cars where invented but someone came up with a way to monetise it and now the world has gone crazy. Similarly, Air BnB, any college student has crashed on a couch of a friends during a vacation so Air BnB is not a long step from there. (Oh I just had an idea a community sharing destination vacation website, a group of strangers pool funds together to rent a penthouse hotel room at a resort or something; yeah there are things about security blah blah but since I am not pursuing it someone else can figure that out…)
Anyway my point is that there is no need to struggle for a revolutionary idea, just observe the world around you and find a way to monetise a simple self sustaining process. And the best place to find ideas that have reduced costs is to take advantage of economics of scale (wait is that the right thing I am trying to say- my economics professor will be so disappointed). What I mean is that aim for $1 from a billion people instead of $1,000,000,000 from one person; spread the business model to reduce cost; and realise that most animals in nature organise themselves as a community for a reason- it is more efficient (hence sharing economy)
The funniest thing is that the early church lived in this sharing economy more than 2000 years ago. They donated all they had to a communal pot and everyone got to draw from it as needed. As an economist, I know that free markets are the best way to organise an economy, there just is too much changing information for any central planning, be it human or machine. However, are all incentives in the world based on self-interest?
The field of behavioural economics has shown how individuals actually behave in opposition to the rational man of traditional economic theory. As for me, my Christian belief gives me a set of ideals to live up to that re-orient my utility function to be centred on The Ultimate Commandment: love God with all you might, soul and power and love your neighbour as yourself. Therefore, I have been in the sharing economy since 1988 at baptism.
Thank you for reading,