why your business should avoid ownership
TRANSCRIPT
Exploring the benefits of our sharing economy.
WHY YOUR BUSINESS SHOULD AVOID OWNERSHIP
THE PROBLEM
EXPONENTIAL AGE
Things change frequently and rapidly.Businesses need to take notice and respond to
changes quickly and efficiently.
THE SOLUTION
THE GOAL
Stay agile.
Don't chain yourself down to heavy assets or tie it to sluggish regulators.
OWNERSHIP WEIGHS YOU DOWN
Ownership exposes your business to…
● Additional taxation● Additional accounting requirements● Exposure to potentially problematic legislation● Maintenance costs● Insurance costs● Legal liability
HOW
IT GETS EASIER EVERY DAY
More and more products and services are offering on-demand options with easy, low cost access.
KEEP YOUR EYE ON THE RIGHT BALL
It’s not about ownership, it’s about access.
Access to use the product or service when you need it. Nothing more, nothing less.
CLOUD COMPUTING
● Offers the ability to store and manage massive amounts of information with unlimited processing
● On a cost-per-use basis requiring no upfront costs or capital investments
● Also puts small companies on the same footing (or better) than large companies burdened by expensive internal IT operations
MARKETING TOOLS
Growing number of big data analytical tools give you unprecedented insight into your markets and
customers.
NICHE TOOLS
Most industries offer access to tools in other areas.
MANUFACTURING
Use maker shops or cloud-based 3D printing.
Alibaba.com allows you to outsource your entire manufacturing cycle.
OFFICE SPACE
● Starbucks● Dunkin’ Donuts● Coworking space● Public libraries
STARTUP
Use incubators and accelerators for funding, mentoring and networking.
VEHICLES
● Good: Lease, don’t buy● Better: Use shared vehicles● Best: Driverless on-demand
sustainablemobility.ei.columbia.edu/files/2012/12/Transforming-Personal-Mobility-Jan-27-20132.pdf
STAFF
Use temp workers and/or freelancers instead of full-time salaried.
ADVANTAGES
SCALABILITY
Near limitless access to resources. And easy contraction during lean times.
EXPERTISE
Ownership of assets, even if mission-critical, is better handled by experts.
Your time is best spent on growing your business.
EXAMPLES
APPLE
Rents manufacturing capabilities from Foxconn.
● Selling Boston Dynamics to avoid hardware?● Licensing self-driving tech vs. building cars?
UBER
Going from a simple app company to owning a global fleet of vehicles.
Potentially opening themselves up to:
● Higher taxes● Regulatory constraints● Legal liability
AIRLINES
Airline operators used to build their own engines.Today, engine manufacturers offer leasing programs that allow airlines
to pay for engines by the number of hours flown.
Something as expensive and complex as an aircraft engine has now become a rented, pay-as-you-go asset, rather than an expensive
internal business unit.
WRAPPING IT UP
WHAT ARE YOUR THOUGHTS?
Use shared assets and services instead of acquiring them for maximum agility and flexibility.
UNLEASH YOUR BUSINESSEMBRACE EXPONENTIAL
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