The New Economy and What it Means to You

The New Economy

Economic Graph

Old Economy vs New Economy

Before we get to the New Economy, let’s start with the old economy of, say 20 – 30 years ago. Staring a new business venture was pretty tedious. There were a lot of steps including:

  • Having an idea
  • Writing a business plan
  • Getting funding
    • Usually through a bank – a tough sell
  • Marketing
    • Newspapers – Expensive
    • Magazines – Expensive
    • Television – Very Expensive
  • Production
  • Distribution

… and so much more. Did this work? Of course it did because we have Wal*Marts, Kmarts, Ford, BMW, Apple, etc. Was it the best methodology? At the time, yes, it was simply how you did it.

New Economy

Let’s jump to today – starting a business can consist of:

  • Googling “New Business Ideas” and going through the hundreds if not thousands of ideas that come up
  • Today, there are a lot of supporters for a smaller more concise Business Plan, even a One Page Business Plan.
  • Get your funding. Now we have
    • Crowdfunding
    • Micro Funding (Kiva)
    • Grants (While these have been around for a while, they have grown)
    • Bootstrapping
    • and more
  • Office Space
    • A home office will suffice, even your kitchen table
    • CoWorking
      • Such as we have here at SoBe CoWorking
        • Benefits include: no family interruptions, no strangers (clients) coming to your home, shared information and much more.
    • Standard office space
  • Marketing
    • We now have the internet – basically free marketing
    • A good high end laser printer to print some nice fliers is quite reasonably priced and will give you professional quality printing.
    • Low cost online digital printing from places like Vistaprint.
    • Newspapers, Magazines and Television have all come down in price with the advent of online newspapers, magazines and competing channels for your views and ad dollars.
  • Production
    • With the advent of 3D printing, you can do a lot of prototyping or even manufacturing in-house or your garage.
    • There are shared spaces such as us, SoBe CoWorks, where you can get some great space to work and network with like minded individuals at a fraction of the cost of standard office space.
    • If you produce a physical product, costs have come down as small mills opened up for almost any type of production you may need. Just Google.
  • Distribution
    • Amazon – Amazon will sell anything as long as it’s legal.
    • Some other options are:
      • Etsy
      • Ebay
      • Shopify
      • WordPress
      • and many more

Is this list exhaustive of the new economy, no. What it does is show you that if you have an idea or even an improvement on something that already exists, you can do it if you try. Look at Apple, technically Apple does not “invent” anything. They take already existing objects and improve them/make them better:

  • The iPod – An improvement on the Sony Walkman (although, to be specific the idea came from a british gentleman named Kane Kramer)
  • iTunes is based on SoundJam
  • iPhone is a combination of “borrowing” – FingerWorks (Touchscreen), the idea, name & logo for IOSS came from developer Greg Hughes, Pinch Zoom (Samsung).
  • iPad – MicroSofts MS Tablet (Sold years before the iPad), Roger Fidler claims Apple engineers stole his idea, Fijitsu had a device called an iPad 10 years before Apple.

Apple Ref: