How Bitcoin May Affect The Worlds Future

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Bitcoin is one of the oldest and most widely-known cryptocurrencies. There are no coins to mint or bills to print. It is decentralized, which means there is no banking institution or government in control. Owners remain anonymous; rather than using names, Social Security numbers, or tax IDs, bitcoin uses encryption keys to connect sellers to buyers. Bitcoin is mined by extremely powerful computers, rather than being issued like conventional currency. It involves math, technology, social dynamics, and economics, and although it has been around since 2009, it’s rapidly gaining traction. In this guide, readers can learn about some of the basic concepts of bitcoin while getting answers to some common questions.

The Effects of Bitcoin on the World Economy

During the last few years, bitcoin has rapidly risen to global prominence. In becoming the world’s leading cryptocurrency and a top performer among currencies overall, it has gained an astounding 35% over the past year. However, attaining this level of recognition hasn’t been easy. Bitcoin’s association with crimes such as the narcotics sales and money laundering that commonly occurred on dark-web sites like Alphabay and Silk Road, as well as its high level of volatility, left conventional financial market participants very wary of its risks.

How Bitcoin Has Changed Banking

skyscrapersBitcoin’s potential impact on the central banking system should not be underestimated. The BIS, or Bank for International Settlements, which is owned and operated by the world’s top central banks, observed that Bitcoin could potentially affect their ability to control the global economy and issue currency. As of the time of this writing, many of the world’s central banks are closely monitoring Bitcoin developments. Others, such as the central banks of Ecuador and Canada, have already taken action by creating proposals for issuance of digital versions of their countries’ fiat currencies.

Bitcoin’s Effects on Industry

Bitcoin has recently brought changes to a range of industries as well. Most industries that accept Bitcoins as payment are run online. For instance, Cheapname, which provides domain registry services, accepts payment in the form of Bitcoin. Other online companies like WordPress, which allows users to set up personal and professional blogs, also accept Bitcoin payments. Finally, Steam, a gaming platform, accepts cryptocurrencies as well. Bitcoin’s success has brought it from the online realm into the brick-and-mortar world. Virgin Galactic, a company with a known preference for state-of-the-art technology, research, and development, somewhat unsurprisingly accepts Bitcoin, as does Elon Musk’s Tesla car company.

Bitcoin’s Political and Societal Effects

Along with its benefits, Bitcoin brings a fair amount of political upheaval. As stated before, it is not controlled by any single government or bank. Because it’s a highly individualized type of wealth, and because of the cryptography involved, no state can take away that individuality. As people begin to understand that cryptocurrencies like Bitcoin are advantageous because they’re governed by code rather than by human bias, the political controversy is likely to continue.

Cryptocurrencies’ effects on society haven’t yet been fully realized, nor will they be felt immediately. Despite the rise of digital currency, it is just now becoming mainstream, and many people are still unsure how Bitcoin works. An increasing number of sellers are accepting cryptocurrency payments, and it’s a matter of time until more follow suit.

How Bitcoin May Affect the World’s Future

Most of today’s international and digital transactions use one type or another of virtual credit or currency. Bitcoin is built to provide the same convenience and security assurance afforded by credit, while bypassing additional processing fees and time requirements. International remittances, or payments sent home by those working abroad, are the area with the biggest growth potential for cryptocurrency. As of now, money sent home must pass through several wire services, banks, and currency exchanges.

According to a recent Businessweek study, the average international remittance fee was 9% of the total transferred, with cash conversion costing an average of 5% more. Companies like Western Union work on profit margins of nearly 16%, and many of their costs are incurred because of the technology involved in moving money from place to place and guaranteeing transactional legitimacy. In short, what these companies spend billions of dollars to accomplish, Bitcoin and other cryptocurrencies can do at no cost.

Which Sectors Will See the Most Significant Changes Because of Bitcoin?

Many of today’s financial experts predict that cryptocurrency and blockchain technology will be the biggest disruption since the Internet was created. With the number of industries that can potentially be affected by this technology, it’s easy to see the truth in these predictions. While the financial sector is testing and using blockchain tech to increase operational efficiency and decrease per-transaction costs, other sectors face potential effects, as listed below.

  • Private transportation: The industry will see potential disruption in two forms; the development of eWallets for in-car use, and the advent of decentralized, blockchain-based, peer-to-peer ridesharing. For instance, companies like Innogy, ZF, and UBS are now developing eWallets that allow auto owners to quickly and seamlessly pay for parking, tolls, and electric car charging with the car’s blockchain-based, built-in eWallet. Ridesharing services are likely to increase as a part of the global sharing economy, and basing these services on blockchain tech takes the control away from central third parties. Here, owners and riders can agree on ridesharing terms and conditions via secure, smart contracts. Startups currently building such services include Israel’s La’Zooz and New Hampshire’s Arcade City.
  • Cybersecurity: This has become a popular topic among corporations and individuals as cybercrime becomes more common around the world. In fact, the World Economic Forum highlighted it as one of the biggest risks in the world. Because of its immutable, decentralized nature, blockchain technology can be utilized to prevent the theft of data, because that data is stored using secure, safe cryptography. Furthermore, blockchain tech can be used to build a more secure Internet that’s less vulnerable to distributed denial of service or DDoS attacks. Startups like Nebulis are developing new blockchain-based domain name systems, which can’t be harmed by DDoS attacks.
  • The distribution of music: Today’s music industry will also be affected as cryptocurrency changes the way things are bought and sold. Several startup companies are using blockchain to change the way music is shared and royalties are paid, further disintermediating an industry that has previously been heavily centralized. These companies are building new ways for artists to sell their albums and singles directly to fans, with no need to go through a record label or other distributor. This will create a more open, fair music industry where artists receive direct payment and are able to form closer relationships with listeners.
  • nurses and doctorsHealthcare: The health sector will greatly benefit from the use of blockchain tech. Hospitals and nursing facilities often struggle to securely warehouse and share data, and they regularly fall victim to cyberattacks. Using the distributed ledger method to safely share and store data will improve the security of that data while allowing for more accurate, faster diagnoses.
  • Storage in the cloud: Most sectors are wholeheartedly embracing the concept of cloud storage. However, with the current condition of the cloud, the sector’s users must trust third parties such as Dropbox and Google to safely handle their important data. However, by combining blockchain and cloud storage, that doesn’t have to be the case. Startup companies are now allowing users to share unused space with others for a low fee. This creates a crowd-sourced, decentralized storage solution that’s less likely to suffer from data loss and cyberattacks.
  • Management of the supply chain: This industry is primed for serious blockchain-related changes as it continues to focus on transactions that must be noted in a transparent but secure manner. There are multiple startups working on blockchain-related supply chain management methods.
  • Voting: One of the most significant areas of societal disruption will be the use of blockchain tech for vote tallying and voter registration. As the world saw during the last US presidential election, a process in which the Russians were alleged to have interfered, a publicly viewable, immutable ledger of votes would be a big step toward fairer, more democratic form of global politics. Several startups are trying to hack the democratic process by creating online identity verification and voting processes that use blockchain technology.

Some of the world’s biggest cryptocurrency skeptics are starting to accept that blockchain will play a substantial role in various industries by storing, recording, and sending data in a low-cost, secure manner.

Tips for Investing in Bitcoin

Bitcoin’s exploding popularity has created a significant buzz among investors, traders, and consumers. Low fees, high transaction speeds, increasing values, and other factors have convinced millions to adopt the cryptocurrency as a primary method of exchange. Large trading groups have capitalized on the Bitcoin boom, but in this turbulent environment, dedication and discipline are two requirements for success. Below are several tips to help investors turn that volatility into an advantage.

  • Become a technical analysis expert: Bitcoin’s nature makes it much different from other currencies. As there’s no governing body to affect its value, it’s highly susceptible to effects from outside sources such as news event. Bitcoin’s value model is highly speculative, and it disregards a large portion of conventional financial theory. Understanding how to perform technical analysis is an important prerequisite for entry into the cryptocurrency market.
  • Set a pace that’s sustainable for the long term: As in conventional financial markets, trading isn’t a sprint, but a marathon. One of the most vital steps cryptocurrency market participants must take is to establish a schedule that can be kept over weeks, months, or even years. No one can do their best trading at all hours of the day and night, and the ideal practice is to set a manageable timeline by focusing on optimal trading times.
  • Stay updated: Bitcoin and other cryptocurrencies are unique in that most news events’ effects on the market can’t be predicted. There are no inventory reports or GDP releases to influence pricing and increase participation. However, unexpected happenings can significantly affect the price of Bitcoin, and it’s a good idea to keep an eye on the news feed, just in case.
  • Implement a stop-loss policy: Long-term volatility is a Bitcoin attribute that’s especially compelling to active investors and traders. Valuations can fluctuate by up to 10% each day, which creates ample opportunities for traders who are willing to take a few chances. Whether a trader works in the Bitcoin futures, CFD, or cash markets, a stop-loss policy is essential. It’s important to use a stop-loss somewhere in the market to protect open positions.
  • Use leverage wisely when trading or investing in Bitcoin: While it seems cliché, leverage really is a double-edged sword. It magnifies one’s gains, but it substantially increases their losses as well. If leverage is excessive, an investor is more likely to mismanage their money and lose everything. However, too little leverage can inhibit performance because trades may not always perform to their full potential. In the end, effective management of leverage is a delicate balancing act, but it’s an important one for Bitcoin investors to perform.

An easy way to define a position’s size is to use the 3% rule. Under this guideline, only three percent of the trading account’s total is assignable to each trade. This ensures that the risk matches the reward in regards to stop-loss location and position sizing.

In Conclusion

The world is quickly approaching the ten-year anniversary of Bitcoin, and cryptocurrency, decentralization, and blockchain are continuing to evolve. Cryptocurrency is in a bit of a bubble right now, and like others, the bubble will burst eventually. Surviving currencies such as Bitcoin will become the Amazon, Facebook, Goldman Sachs, and JP Morgan of the next few years, and they may even form the basis of future governments.

As existing players enter the system, they will leverage their power to protect the system from outsiders. Decentralized currencies will become a parallel economic OS for the world, especially in countries that saw the most significant effects of the US dollar’s dominance. However, to accomplish these goals, Bitcoin and other cryptocurrencies have to become indispensable.

Laptop and email interface

Etiquette Basics for Business Emails

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Five years ago, analysts with technology research firm, The Radicati Group, Inc. predicted more than 130 billion business emails would be sent and received each day by the end of last year. Current figures indicate we’ve met those expectations in full force. This form of communication has not only inundated the business world but transformed it. In light of this development, understanding proper business email etiquette is the key to conveying professionalism and authority in today’s online landscape.

Building a Winning Email Strategy

Email has certainly become the norm these days, leaving some a bit lax on the finer points of the game. As a result, many formal emails fall short of delivering on their intended purposes. To carry a professional image, business etiquette dictates certain elements should be included.

  • Straightforward Subject Line: Subject lines are our first, and possibly our only, opportunities to grab recipients’ attention and convince them reading further is worth their time. These shouldn’t, under any circumstances, be left blank. Of course, a vague generic description, like “read this now” reeks of spam and could be equally ineffective. Be direct and concise regarding the email’s contents, such as “End-of-Year Marketing Report Attached”. Specificity greatly increases the chances of an email being opened and read through.
  • Appropriate Salutation: Salutations are also crucial components of business etiquette. Openings like “Dear”, “Good Day”, “Greetings”, “Hello” and “Hi” all serve nicely in a professional environment. These should be followed by the recipient’s name. While “To Whom It May Concern” and “Dear Sir or Madame” once ruled the world of formal salutations, they’re both considered somewhat off-putting in the modern-day sense.
  • Writing a business emailFull Signature: Be sure to add your signature to business emails as well. Though these shouldn’t drone on beyond five or six lines, they should definitely contain your name, email, company designation and phone number. All these give recipients ample ways of contacting you directly in the email, so they don’t have to spend extra time looking up your information elsewhere.
  • Be Thorough: Regardless of how many past exchanges you’ve had with a recipient, it’s important to provide details. Compose each email as if it were the first communication between the two of you, briefly but fully covering the subject at hand. This helps avoid confusion and prevents recipients from having to scroll through previous conversations to remind themselves of what you’re talking about.
  • Follow the Rules of Writing: Though the world has become fairly lenient when it comes to the ins and outs of written communication, business email etiquette places great emphasis on them. Write in complete sentences with proper punctuation and capitalization in all the right places; otherwise, you’ll appear sloppy or even uneducated in the eyes of others.

After all is said and done, be sure to proofread before sending. Walk away for a few minutes and come back to it, so you’ll read what you wrote rather than what you meant to say. With all these elements in place and careful attention to detail, you’ll build a well-crafted formal email strategy sure to draw the attention of coworkers, clients and prospects.

What to Avoid in Business Emails

Just as certain components should be part of your winning email approach, some things should be left out of the mix. Allowing anger or frustration to sway your good judgement could be considered the most vital point on this end of the spectrum. Other factors to sidestep include:

  • Sharing Private Info on Group Emails: This may seem like common sense, but it’s easy to forget who and what are involved in a hasty moment. Never share private contact information or files in group chats unless you have explicit permission. Doing so compromises security and trust, and it could get you into quite a bit of legal trouble if the breached individual decides to take the situation that far.
  • Five guys jumping in the air

    Humour is suitable for the working atmosphere, but not in a professional email.

    Using Humor: Humor is a wonderful gift when used in face-to-face exchanges, but it tends to lose something in digital translation. Statements that might be hilarious in person could be taken as outright offensive via email, so just don’t make the attempt. It’s better to come off bland than boorish.

  • Inserting Informal Features: Casual acronyms certainly have their places, and emoticons are capable of brightening people’s days, but there’s no room for them in business emails. Smiley faces, LOLs, excessive exclamation points and other non-essentials tend to detract from professionalism, so leave them out of the mix.

Last but not least, don’t leave an email sitting in your inbox unless it’s the definitive end of a conversation. If a recipient took the time to read an email from you and respond to it, return the courtesy.

Professionalism is vital when it comes to online correspondence where facial expressions, vocal indications and other communication tools don’t apply. Follow these rules of email etiquette, and you’ll be all set to impress. Attention to detail takes a little extra time and effort, but it pays off in the grand scheme of things.

The Arrival of Automation: Will a Robot Take Your Job?

The Arrival of Automation: Will a Robot Take Your Job?

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The Arrival of Automation: Will a Robot Take Your Job?Job automation has arrived and it’s already saving manufacturing businesses a good deal of money. But with tech masterminds like Mark Zuckerberg and Elon Musk celebrating the rapid rise of artificial intelligence and automated labor, there’s reason for some workers to be worried about their jobs.

How Artificial Intelligence and Robots Save Money and Put Jobs in Jeopardy

How Artificial Intelligence and Robots Save Money

Human workers have a lot of needs. Sick days, paid holidays, minimum wage, government-mandated lunch breaks and other hallmarks of a humane employment situation can attract talented workers. But these perks aren’t necessarily good for the bottom line, especially when it comes to menial jobs with high turnover. Robot workers, on the other hand, don’t really need much other than some routine maintenance and the occasional big fix for an equipment malfunction or software bug.

It’s no surprise, then, that some businesses are bringing in robots to take the place of their low-level employees. With high rates of productivity and no need to worry about everyday HR concerns like salary and performance reviews, robots are proving a worthwhile investment. It’s an attractive prospect that has many business leaders wondering how they can replace some of their human laborers with computers, machines, and robotics that operate autonomously and perform the same work for less than a human employee.

As it stands now, we’re still in the early phases of the predicted robopocalypse of job automation, but if recent innovations are any indication, the robot job takeover could happen sooner rather than later. In particular, open-source artificial intelligence (AI) efforts such as Elon Musk’s OpenAI make the source code for AI programs available to anyone who wants to use it. This could make it much more efficient for developers to write code for computerized bots and other artificial intelligence, even at smaller companies and startups.

Which Jobs are at Risk?

Which Jobs are at Risk?

This all means that skilled and unskilled labor jobs, particularly those focused on tasks that involve repetitive gestures and the creation of identical items in an assembly-line fashion are at high-risk for robot replacement. Many laborers, especially those in automotive manufacturing, are already seeing large-scale job loss as manufacturing bots move onto the factory floor. Construction may be next as robots prove their worth in manufacturing and, in March 2017, the CEO of Taco Bell and KFC’s parent company indicated that he sees a big future for automated food prep in the fast food industry.

Even some menial office jobs, particularly those fulfilled by receptionists and assistants, are considered prime targets for automation. Paralegals, whose jobs are largely based on fact-finding, could also see themselves made obsolete by the right artificial intelligence (AI) program on their lawyer boss’ computer. But some higher-level jobs may also be at risk. The senior VP of digital marketing could feel the squeeze when marketing automation makes the human involvement in everything from social media posts to email blasts all but unnecessary. A manager may be needed to monitor feeds and other such oversight tasks, but the menial labor will likely be taken over by a specially coded computer program. And as more and more jobs get taken over by robots, recruiters, temp agency workers, HR professionals and others who deal with the human side of labor may also feel the squeeze.

However, there are plenty of jobs that aren’t considered to be vulnerable to job automation. For example, we aren’t at the point of letting the robots program or design themselves, so anyone who wants a secure career future may want to start learning how to program AI and engineer robotic machines. It’s highly likely that robots will be used to service and repair other robots, though, which means that a displaced factory worker who hopes to a robot mechanic isn’t exactly setting a realistic long-term career trajectory.

History and the Robot Uprising

History and the Robot Uprising

So will a robot take your job? If you’re a low-level worker in fast food, automotive manufacturing, bookkeeping, financial analysis or other industries in which menial, repetitive tasks are the name of the game, you have good reason to be worried. However, that doesn’t necessarily spell a future of widespread poverty. After all, if a significant percentage of wage earners are completely displaced by automation, the economic impact could do immense financial damage to the companies investing in robot workers in the first place. If no one can afford to buy cars, what’s the point of having robots build them in the first place? Job automation allows for high levels of productivity, but that productivity isn’t worth the investment if it isn’t actually driving revenue gains.

There’s also a question of the human touch. Job roles such as bank teller, financial advisor, and even movie star are said to be on the chopping block, but nuance and emotional awareness are notoriously difficult tasks for AI to master. Anyone who’s become frustrated by Alexa or Siri’s inability to understand pronunciation subtleties knows this firsthand. AI will likely get better at human-style interaction with time, but will that really mean that the benefits of social interaction itself become obsolete?

The point is that future jobs will likely look different than the jobs of the present day, but that doesn’t mean there won’t be any jobs for humans. This false assumption dates all the way back in the 16th century when Queen Elizabeth I of England denied a patent to a man who’d invented the automatic knitting machine. The queen was afraid that such a machine would make it impossible for poor women and girls to earn money with their knitting skills. Hundreds of years later, textile factory jobs ended up being a boon to many, especially after the introduction of safe labor practices and fair wage laws.

Even the 20th century had its fair share of unfounded hand wringing over the prospect of new technologies. Economists in the 1960s raised the alarm about computers taking jobs and destroying the economy, but they actually facilitated the creation of dozens of new career paths. Job automation may be the end of work as we know it, but likely not the end of work altogether. So, while robots in the future may take all or part of your job, historical context tells us that there will likely be another opportunity waiting for you in the brave new automated future. What will the future and technology hold? Self-driving cars, 100% person-free labor market with humanoid robots doing everything people once did? Though a robot takeover seems a little farfetched right now, who knows what the future skills of robots will bring.

smart contract

Useful Etiquette Rules For Business Meetings

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Many assume that proper etiquette is all about sending thank-you notes, using the right fork at mealtime and dressing appropriately. However, where the professional world is concerned, a person’s behavior and planning processes speak to their professionalism, and the smallest misstep can damage one’s career. Below are several business meeting etiquette rules to know and abide by.

Use Full Names During Pre-Meeting Introductions

Many people have difficulty associating names with faces, especially in the conference- and convention-filled business world where introductions are a daily occurrence. During business meetings, it’s important to use full names when making introductions. When clients know a person’s last name, it’s easier for them to make connections on LinkedIn and other professional-oriented social media sites.

Don’t Fidget

It’s natural to become a bit uncomfortable when sitting through a long meeting. However, crossing and uncrossing one’s legs can be distracting. Rather than fidgeting and shifting in a seat, meeting attendees should find a comfortable position and stick with it as long as possible.

Refrain From Eating or Chewing Gum

Every office worker has dealt with the smell of someone else’s food, which can make it hard to concentrate during a long meeting. Unless a business meeting is to be held over the course of a meal, attendees should avoid eating during that time.

Keep Questions Short and to the Point

Business meetings are the perfect time to bring up concerns and questions, and when the right people are there, good answers are more likely. However, if one’s inquiries have made the meeting run late, they’re wasting everyone’s time. Try to save important questions for the meeting and, if necessary, follow up with a post-meeting email.

At Dinner Meetings, the One Who Invites, Pays

No one likes the awkward process of splitting a dinner check, especially when answers come simply. If one invites colleagues or clients to a meeting, they pay for the meal. Regardless of whether it’s a coffee meeting or a full business dinner, the one who does the inviting pays the tab.

Use Email and Chat Functions Wisely

As risky as the function can be, it’s a useful way to relay important information before or after a meeting. For instance, let’s say that a colleague sends a group email asking for pre-meeting details. If one responds to only the original sender, everyone else is left unaware. Conversely, having one’s email inbox filled with useless, irrelevant group emails can be quite annoying. If details are sensitive or specific, be sure to remove those who don’t need such information. You should also follow certain rules on the telephone to ensure professional communication.

Keep Thank-Yous to a Minimum

While showing one’s appreciation is acceptable, excessive gratitude can seem insincere. At the close of a business meeting, one sincere, confident “thanks”, along with a firm handshake, is sufficient.

In Closing

In the business world, politeness and professionalism are about more than dotting I’s and crossing T’s. Proper business meeting etiquette, along with solid planning, can help make meetings more successful. If professionals follow these rules, they will find it easier to get ahead in their careers.

Business Dress Etiquette

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As much as everyone tries not to make judgments based on appearances, the way a person looks plays a crucial role in their business success. In the business world, appearance is often conflated with performance, and those who don’t fit the norm aren’t always accepted. In the workplaces of today, where ‘casual Friday’ has extended to the entire week, it’s hard to understand business dress rules. Below are a few basic dress etiquette rules to follow.

Understand What’s Acceptable for the Industry

Every office’s dress code is different, and to be successful, one must follow along. For instance, in a casual office, one may be allowed to wear shorts, but cutoff jeans may be forbidden. If the company has an explicitly stated business dress code, workers should follow it.

Wear Well-Fitting, Office-Appropriate Clothes

If a person’s clothes are too small or too big, they simply won’t look good. Ensuring proper fit applies to everything a person wears, including accessories, clothing, and shoes. Women should avoid excessively short hemlines, stiletto heels, deep necklines, and exposed undergarments. Men should make sure their ties, coat sleeves, and pants are of the proper length, and they should be sure to wear a belt to keep things where they should be. After all, in the business world, it’s better for one to be remembered for what they said rather than what they wore.

Avoid Strong Fragrances

Not only are strong fragrances distracting, they can cause asthmatic and allergic reactions in sensitive individuals. Anything that someone else can smell isn’t good. To determine whether a particular scent is too strong, one should ask a trusted friend or colleague for advice.

Wear Neat, Polished Shoes

Bosses and recruiters often say that the first thing they notice about a candidate or employee is their shoes. It’s important to keep them polished and in great shape, and women should avoid wearing excessively tall heels in the workplace.

Use Hosiery Wisely

While many women still prefer a bare-legged look, pantyhose have become stylish once more. They give the wearer a more polished, professional look. For men, it’s important not to show any skin when legs are crossed and pants lift up slightly. Prevent these problems by wearing socks of the correct length.

Get a Pedicure

One of the biggest distractions in the office occurs when women wear open-toed dress shoes without getting a pedicure. If one decides to show their toes, those toes should be well-groomed and clean.

Use Accessories Wisely

A person’s accessories are meant to add to their outfit, not overwhelm it. It’s very distracting when someone’s jewelry makes noise when they move, and other pieces, such as watches, should be understated.

Keep Facial Hair Groomed

Regardless of how much a man wants a full beard, it may not work in the office setting. Embarrassing situations could arise, e. g. when eating. Men should think of grooming their beards in the same way they would think of a haircut; not every look works for everyone. Start by determining one’s facial features and shape, and find others with facial hair and similar features. Finally, experiment with cuts and styles until an office-friendly choice is found.

If a man decides to grow a beard or mustache, he should do so over a long weekend or a vacation. That way, the growth will look intentional, rather than giving the impression that one simply hasn’t shaved. Facial hair should be kept neat and tidy for a professional appearance. Scissors are useful for trimming a mustache, while electric razors are great for trimmed, short beards.

Wear Richer Colors to Convey Confidence and Authority

Professionals should pay careful attention to their color choices; darker colors often make a stronger and more memorable impression than lighter hues. If one is giving a speech or presentation, they should ensure the colors they choose don’t blend in with the backdrop against which they are standing.  However, it’s important to be careful with brighter shades. When a person’s clothes are too flashy, they may distract other workers.

Other Dress Tips

Office workers should remember that a business dress code isn’t always synonymous with good style. Adding patterns and colors to one’s work wardrobe is an easy, fun way to exhibit one’s personality while retaining a professional look. Investing in staples such as reversible belts and wrinkle-free clothing can make dressing for work easy and effortless. No matter what one wears to work, it should be pressed, clean, conservative, and stain-free.

In Conclusion

Dressing for corporate success is not just about looking nice. The way a person dresses can have positive or negative effects on how a person is perceived in the professional setting. By following these tips, one can present a polished image that makes them look more credible.

a business telephone

Proper Business Call Etiquette: Saving Face Over the Phone

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Following its invention during the late 1800s, the telephone became an integral component in business operations. Despite all the technological advancements brought about since that time, the phone still holds its own in the business world. Voice-to-voice communication is – such as face-to-face communication – just faster, simpler, and more personable than the alternatives in some cases. Using proper telephone etiquette, though, could make a world of difference in the outcome of a business call.

Send the Right Message

Business calls require a balance of professionalism, amiability, and common courtesy. Finding such a balance isn’t always easy, but it’s essential. As a general rule, the phone shouldn’t ring more than three times before being answered or the person on the other end of the line may feel the call isn’t as important to you as it is to him or her. At the same time, picking up immediately has a way of catching a caller off guard. From there, attitude and technique are everything.

  • Smile before Answeringsmiling woman on the phone

    Though the person to whom you’re speaking can’t see you during a traditional call, he or she can usually sense your disposition. Whether your heart is in the smile or not, it’ll change the tone of your voice to a more pleasant one.

  • Names are Important

    We’re all individuals, and we like to be treated as such rather than just another sale or business opportunity. If the caller or callee doesn’t offer an introduction during initial contact, ask for a name. Remembering this identity for future reference is equally critical.

  • Use Your Voice

    Speak clearly and somewhat slowly while holding the phone approximately two inches from your mouth. Any farther away would leave the other person straining to hear you whereas holding the phone closer tends to make voices more garbled. Speed-talking is equally counterproductive.

  • Give Appropriate Answers

    In the midst of a business call, the phrase “I don’t know” shouldn’t be part of your vocabulary. It’s unprofessional and off-putting to the person on the other side of the conversation. If you don’t have an answer, say something to the effect of “Let me look into it” or “I’ll check on that.“

  • Avoid Lengthy Holding Patterns

    No one likes to be put on hold during a call, but it’s sometimes unavoidable. Should it become necessary, be sure to ask if it’s okay with the other person. If you expect to be otherwise engaged for a considerable amount of time, it’s better to ask for a phone number and call back the other person later. In the event you realize mid-hold you’ll be held up longer than anticipated, check back in to let your conversation partner know you’ve not forgotten about him or her and follow callback protocol.

  • Break the Vicious Cycle

    Getting the runaround on the phone may very well be the most irritating aspect of calling. Never transfer someone without a courteous explanation, do your best to ensure you’re transferring to the appropriate party, and always be sure the person you’re transferring to is available for conversation.

  • Politeness is Essentialman on the phone

    Always be polite to the person to whom you’re speaking even if he or she isn’t returning the favor. Choose your words carefully. You’ll inevitably run across people who take everything you say as an insult but do your best to keep things on a diplomatic level.

  • Conclusions are Crucial

    End every call with a pleasantry, such as “thank you for your call” or “have a great day.” Don’t hang up until you’re sure the other person has nothing else to say.

As an added hint, keep your purpose in mind. Business is increasingly making its way into the home, and that can be a precarious scenario on occasion. Helping the kids with their homework or yelling at the dog and cat to stop fighting during this type of call isn’t exactly conducive to a business environment. If necessary, find a quiet room away from commotion and distractions to conduct phone calls.

At times, doing business over the phone can be easier and more productive than communicating via text or email. It also brings a more personal touch to an increasingly digital world. Though the benefits of vocal interaction are many, lacking proper phone etiquette could hamper productivity.

Mergers

Mergers And Acquisitions: Past, Present, And Future

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Mergers and acquisitions (M&A) have become a major part of the modern corporate landscape. Under this process, two businesses will either combine to form a single entity (merger) or one will purchase the other (acquisition) and, typically, take over its operations.

With startup culture thriving and businesses needing to think on their feet to stay afloat in the changing financial landscape, the thought of absorbing a potential competitor or bringing in a new asset to revitalize operations is more appealing than ever. A dataroom can be a secure and highly useful solution to support all M&A transactions.

In fact, 2015 and 2016 were the biggest years ever for major M&A transaction acquirers and post-merger integration. The tech industry, in particular, is a focus for M&A activity, but it’s not the only arena in which this can be a smart strategy. Learn more about what companies considering either a merger of assets or an acquisition need to contend with in the digital age.

New Challenges Posted By Digital Acquisition

Acquisition

Digital acquisitions are a driving factor in the prevalence of M&A transactions across the globe, but there have been some notable failures in this arena in the past. Most startups are created with the end goal of being acquired by new parent firms that can boost the brand and provide access to new resources for the continuation of successful innovation.

But not all corporate parents are ready for this kind of responsibility. There are many legal and financial factors to consider in the M&A process, but when it comes to digital businesses, there are a few additional elements to watch out for.

Corporate Culture Differences

Digital businesses operate differently than what most seasoned businessmen and women are used to seeing, and it’s driving major corporate culture changes that pose major challenges for acquiring companies.

From flexible work arrangements to relaxed leadership structures and a focus on innovation over the status quo, tech company employees are often used to management and office environment styles that are much different from what their new bosses are ready to present.

calture

But tech companies often build a culture around the service they provide, meaning their users come to expect a certain ethos and style from the products they love. Sometimes, there’s not enough attention paid to the unique, intangible factors behind a tech company’s success. Initial valuation doesn’t tell the whole story. For example, Condé Nast acquired Reddit in 2006, but its plans for the site weren’t initially clear.

After a couple of years, it became obvious that Condé Nast and its parent company, Advance Publications, simply didn’t know what to do with the Reddit brand. The old-school publication approach wasn’t going to work well with the Wild West style Reddit thrives on.

Reddit was never going to be able to successfully rebrand as a straightforward online publication and it didn’t take long for Advance Publications to cut Reddit loss and restore its independence. However, rather than selling Reddit off entirely, Advance Publications remains a majority shareholder in the company, making its initial investment a bit more worthwhile.

Reddit’s original founders took back over and are steering the site (relatively) smoothly into the future. Replicating the original success of some of these companies’ founders isn’t always an easy prospect, especially if the acquiring company doesn’t have a deep, organic understanding of what the product is all about.

Plans For Integration And Improvement

Ideally, a tech merger or acquisition will benefit both the buyer and the seller in the long term, not just in the temporary sense of jumping stock prices and a sky-high sell out the payday. Companies that buy tech startups really need to think carefully about how they’re going to integrate this new technology into their existing approach and how they can improve this new technology even more.

new technology

Very few tech companies are sold having reached their full potential. Arguably, no tech company will ever truly reach its full potential since there’s so much room to innovate and grow in this area. So the acquiring organization needs to have a game plan in place to justify the purchase and ensure it’ll pay off in the long run. Often, it seems that corporate acquisitions are motivated by a certain degree of cluelessness.

There are a few high-profile examples of this. Fox’s 2006 purchase of MySpace, for example, couldn’t have been more ill timed or poorly managed. Right as Facebook was starting to rise, Fox bought MySpace and made a strange attempt to repurpose the social media site into a music-focused portal, but the shift was abrupt and, most importantly, wasn’t really responding to any particular demonstrated need.

It was a clumsy attempt to leverage one of the more successful elements of MySpace, independent music discovery, into a more profitable model, and it failed miserably. Plus, there didn’t seem to be much, if any, investment in improving the MySpace user experience, which left the stalwart social network vulnerable to the challenge posed by upstart Facebook’s streamlined design. Five years later, Fox sold MySpace for a massive loss. Fox just wasn’t ready to do what needed to be done to make MySpace enduringly successful.

Realistic Cost/Benefit Analysis

Both of these factors point to a broader issue: how will the acquiring company benefit from the presence of this new brand? Due diligence is different on this new frontier. Most tech startups aren’t yet profitable at the time they’re acquired.

The acquisition itself is considered the necessary step in that brand’s road to financial success. Valuation numbers can appear sky-high and a buyer that isn’t savvy enough to really understand tech may think that valuation tells the whole story. But it doesn’t.

Realistic

To successfully integrate a valuable new entity into the fold, the acquiring organization needs to carefully determine how this new tech product will actually bring in revenue. There needs to be a plan in place for helping the digital asset reach its full potential. Simply acquiring a digital company isn’t going to suddenly transform everything.

The acquiring organization has to have a specific reason why this particular entity is a good fit for their mission and needs to be prepared to nurture their new acquisition immediately following the sale and in the future. Post-merger integration isn’t an organic process but a deliberate, well-organized effort. If a corporate parent can’t think of a way to integrate the new brand, chances are they won’t benefit from the purchase very much, if at all.

Why Do M&As Fail?

We’ve just given some examples of failed (or nearly failed) M&A efforts in the tech space, but this isn’t the only area where an acquiring parent can succumb to blind spots and bad analysis. There isn’t a single reason why a merger or acquisition fails; each one presents its own case. However, there are some consistent factors. As indicated above, a failure to properly plan and consider what the new brand will do can really do a lot of damage.

prolonged

Simply seeing that an entity is successful on its own does not provide sufficient evidence that that entity will continue to succeed once acquired or merged. There are examples in other industries of a company that overestimates the value a new asset can add. For example, in the pharmaceutical industry, Teva Pharmaceuticals’ purchase of Allergan’s generics business resulted in claims of gross overpayment from both investors and financial analysts.

There are a few reasons why the deal was thought to have failed before it even went through. For one, Teva was somewhat desperately chasing a solution to the potential revenue gap caused by the patent expiration of its most expensive branded medication. But there were also external factors in play, including the prolonged scrutiny from US and EU government regulators responding to growing public anger over drug prices.

This isn’t to say that the acquisition can’t pay off for Teva in the long run. But the ball was already rolling, the deal in progress, when external factors arose to make the deal seem less beneficial. Depending on who you ask, it could be argued that Teva didn’t really have a way of seeing what was coming when they pursued this option. As with all business activities, M&A is a calculated risk.

The key is to actually perform those calculations before taking the risk rather than diving in headfirst without really analyzing all potential outcomes. Focusing on the human element, both in terms of the people who make up the newly combined organization and the consumers who will respond, is an essential part of the process. Numbers alone can’t tell the whole story.

The Current And Future M&A Landscape

There have been a few notable M&A events in 2017 that indicate just how much businesses can benefit from either merging with or acquiring (or being acquired by) another organization. One of the most notable is Amazon’s $15 billion acquisition of Whole Foods, signaling that the e-commerce giant credited with destroying retail may realize that in-person purchases remain highly appealing for many consumers.

Landscape

Amazon’s exact intentions remain a mystery, but it’s safe to say they wouldn’t have spent such a massive sum on an uncertain strategy. Some companies have used M&A as a strategy to sidestep the traditional IPO process, which is exactly what Purple Mattress did in the summer of 2017.

Direct-to-consumer mattress sales are big business and Purple actually merged with a publicly traded shell corporation, which instantly gives Purple public status and secured the mattress manufacturer a $1.1 billion valuation overnight.

Another 2017 M&A, this time the acquisition of a startup, MindMeld, by an established industry leader, Cisco, highlights one reason why M&As have become so common. MindMeld is an AI startup that built a conversation-monitoring bot that can interject useful information in the midst of a conversation.

Their initial use case involved running the program in the background on a mobile device at all times so user conversations could be annotated and supplemented with information. The problem? Not many people are interested in having their private conversations tracked in this manner. But Cisco can certainly make use of this tool to supplement their corporate communications technology.

On its own, MindMeld likely wouldn’t have found its market, but as part of Cisco, it’s got a clear and sensible purpose. Tech is by far the hottest sector for M&A activity; as a whole, tech, media and telecommunications (TMT) made up the lion’s share of deals reflected in Deloitte’s 2017 M&A index.

There’s no reason to assume this won’t continue, especially as startups continue to receive the necessary funding to develop technologies that will be highly appealing to potential parent companies looking for a way to secure relevancy in the coming years.

Startups can continue to expect some sort of corporate interest from large, established companies, though whether this will level out as more and more companies realize they’re not making the best long-term investments remains to be seen.

Healthcare may also be a sector to watch and not just in the space where it overlaps with tech. However, an uncertain legal landscape surrounding the industry in both the US and the EU may lead to more potential disasters like Teva/Allergan. Retail is also an interesting industry for M&A. Will Amazon/Whole Foods go bust or will it result in the retail apocalypse some are predicting?

We’re currently living through a major M&A boom and it’s hard to know what the future holds. It could be that this is just the way it is now, but antitrust watchdogs and competition advocates might not be too happy to see small enterprises slowly get absorbed by larger entities.

2016 did see a slight dip in M&A activity from 2015, but that may have been a result of the wild uncertainty associated with politics and finance last year. This year isn’t necessarily more stable, but it could be that organizations have adjusted sufficiently to bounce back to previous highs. Even if 2017 doesn’t match or top the two previous years, it’s clear that there’s still a lot of interest in M&A. Acting on that interest could be the right move.

Covered table for a business dinner

Business Dinner Etiquette: The Dos and Don’ts of Dining with Colleagues

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Business dinners are ideal means of interacting with associates outside the office environment. Though plenty of opportunity for showing off a well-balanced blend of professional and social skills awaits in such a setting, lacking in either could result in disaster. No doubt your business sense can hold its own, but understanding the conventional dos and don’ts of business dinner etiquette could make all the difference. If you keep these things in mind, you will be able to successfully conclude your business dealings.

First Things First

Entrances tend to set the stage for the entire event. Although a number of people prefer to blend quietly into their surroundings rather than make themselves known, the first order of business is to shake hands with everyone at the table. Introduce yourself to those whose acquaintances you’ve not yet made. From there, the next few elements are largely a matter of watching the host or hostess.

  • Don’t sit until the host or hostess has been seated.
  • Napkins should be placed on your lap but only after the host or hostess has done the same.
  • Discreetly try to overhear his or her order, and choose something similarly priced for yourself. Alternatively, ask the host or hostess for recommendations.
  • Along those same lines, don’t order an appetizer, cocktails, and dessert if your host asks for nothing more than iced tea and a hearty salad.

Simple, polite greetings, introductions, and following the host or hostess’ lead should get you through the first portion of the experience nicely. Having said that, quite a few other rules apply in a scenario like this.

Pay Attention to What’s in Front of You

place setting on a dinner tableDinner at home isn’t generally a formal affair. A plate, spoon, fork, napkin, and drink are all you need to achieve dining success. When in an upscale establishment, though, a few extra pieces work their way into the puzzle and can cause considerable confusion. In general, formal place settings include, from left to right:

  • Salad Fork
  • Dinner Fork
  • Dinner Plate
  • Dinner Knife
  • Salad Knife
  • Soup Spoon

Bread plates and butter knives appear on the left above the forks, and water and wine glasses sit to the right above the knives and spoon. If there are a spoon and fork above your plate, they’re reserved for dessert.

Remembering which piece of flatware serves what purpose can be tricky, but you basically start from the outside edges for salads and appetizers. Work your way inward for the main course. Keep the bread plate and glasses in their respective places to cut down on mix-ups with those seated next to you.

Moving Further along

Since the host or hostess can’t be your guiding light for the duration of the event, having your own level of savvy goes a long way toward making a great impression. This is where the matter gets a bit more involved.

  • Should others arrive at the table after you’ve been seated, stand to greet them.
  • Don’t pull out guests’ chairs for them. This is a nice gesture on a dinner date, but it’s not the norm in a business setting.
  • While asking the server a few questions regarding the menu is acceptable, requesting long explanations about several of the available options leaves everyone at the table waiting and has been known to generate animosity among dinner acquaintances and waitstaff alike.
  • Break off bite-size pieces of bread and butter each individually.bread on a small plate
  • Cut one or two bites of food at a time rather than carving up an entire steak or chicken cutlet in a single session. Cutting salad and pasta into manageable bites helps foster politeness as well.
  • When talking with others around the table, place silverware on your plate rather than slinging it around. Also be sure to swallow the food in your mouth before speaking.
  • Should conversation turn to religion, politics, or other potentially heated topics, politely opt out of the discussion or offer a brief, neutral response if addressed directly.
  • If a sneeze or cough arises during the meal, turn toward your left shoulder and block it with your left hand. Keep in mind, napkins and tissues aren’t interchangeable during a business dinner.
  • In the event you need to excuse yourself from the table for a moment, there’s no need to provide an explanation. Simply place your napkin on your seat and push it under the table.
  • Avoid asking for a take-home box if you don’t finish your food.
  • Convention dictates the host or hostess is responsible for both the check and the tip, so don’t argue when time to pay comes around.
  • Be sure to thank your host or hostess for the meal.

You have ample personal and professional knowledge to bring to the table. Combining these attributes with proper business dinner etiquette is the key to successfully interacting with colleagues in a slightly more personal setting. Keep these aspects in mind during your next business dinner, and you’re bound to make a good impression.

Economy

The New Economic Frontier: A Sharing Economy

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Tech tools are disrupting everything. We don’t even say change anymore—we say disrupt. These changes are clearly apparent when it comes to the sharing economy. Just 10 years ago, the idea of staying in a complete stranger’s house on vacation or getting into a stranger’s car would have been considered incredibly risky, but now it’s the norm.

Whether they’re looking for a better price on an expensive item or want to earn some extra cash by providing services or selling your stuff, the sharing economy offers a lot of appeal for the average consumer. And: a secure dataroom solutions offers support within this area of sharing economy. Let’s take a closer look at what the sharing economy is, who its major players are, and how it’s disrupting a variety of different industries.

What Is The Sharing Economy?

The shared economy is based on a concept called collaborative consumption and while digital tools have made this consumer model easier than ever, it’s nothing new. A broad sharing economy definition may include more variety than you think—it’s not always about business in the peer-to-peer marketplace. Any venue that allows consumers to take on both the buyer and the seller role at their discretion can be considered part of a sharing economy.

Sharing EconomyThis means that even old-school concepts like garage sales, flea markets, swap meets, and work trade arrangements are included in the general realm of a sharing economy. Online classified services such as Kijiji and Craigslist are great examples of the ways in which classic collaborative consumption can adapt to the digital era.

However, in most cases, when analysts and experts talk about the sharing economy, they’re thinking about startups and other tech businesses seeking to “disrupt” a specific industry by providing updated tools that make it easier than ever to connect individual service providers or sellers and their customers.

When you use Lyft or Uber to call a car, for example, you’re using that company’s platform to connect to individuals who are willing to “share” their car with you by driving you to and from a destination in exchange for money. In cities where you have to specifically call a cab to show up at your house, this service is a major convenience, and it allows average joes with a car to sign up to drive without having to pass taxi driver tests or join a union.

Often, and especially in the case of profit-driven companies like Airbnb and Uber, “disrupting” can come at a price. Uber, in particular, has been criticized for its aggressive business practices. From potentially abusing the contractor concept for their drivers to violating local taxi regulations and actively silencing protests taxi driver unions, Uber is a great example that “the sharing economy” isn’t always just about sharing.

commercializeMany of the companies in this arena are backed by high-profile venture capital firms and want to become as profitable as possible. Even companies like Lyft, which position themselves as friendlier versions of the Ubers of the world, must find a way to commercialize the concept of sharing.

In this sense, the collaborative consumption concept is only loosely applied to some parts of the sharing economy, but there is still a big market for consumers who want to engage in a traditional collaborative economy but lack to tools to do so. In Latin America, a company called Tem Açúcar has found major success by providing a platform for neighbors to connect and offer or ask for favors from the people who live around them.

Whether it’s borrowing a lawn mower after yours breaks or even borrowing a fancy outfit to wear to an event, this service creates a sense of community that represents the purest and most idealized form of the sharing economy.

Goals And Influence

Clearly there are multiple different ways to whether the motivation is profit for the company, as it is in Uber’s case, or a reduction in rampant consumerism and the building of communities, as in Tem Açúcar’s case, most businesses in the sharing economy ultimately exist to undercut competition and provide their users with the most attractive price on a product or service. This can cause traditional economy businesses to lose business.

economy businesses

The hotel industry, in particular, is feeling significant strain with the advent of online hospitality marketplaces such as Airbnb. A person renting out a room in their house (or the entire house itself) doesn’t have to spend as much money offering that room as a hotel does—a hotel has costs associated with advertising, staffing, and the maintenance of a large property that a homeowner does not. This means that homeowners can undercut hotel pricing almost every time.

It’s hard for a $200-per-night hotel room to compete with an apartment in the same neighborhood offered at $100 a night. Customers looking for a bargain may not even consider looking for a hotel room under the assumption that they’ll find a better deal in the sharing economy. Even the luxury hotel market is feeling some strain, with high-end properties on Airbnb hosting, VRBO, and other rental services offering a glamorous alternative.

According to some projections, Airbnb may overtake major hotel conglomerates like Hilton Worldwide to earn the most market share in the hotel industry, regardless of the fact that Airbnb doesn’t actually own or, technically speaking, operate any hotel properties.

As with other industries, like publishing and entertainment, that has been disrupted by the advent of widespread digital technology, hospitality, transportation and other industries are having to adapt to competition from the sharing economy in order to stay relevant and competitive.

In some cases, businesses compete by copying some of the basic elements that make sharing economy businesses so successful. This allows them to leverage their existing benefits with the tools that often draw people to the sharing economy in the first place.

For example, New York City taxis now use an app that allows you to call a cab to your location. Anyone who’s used both cabs and Uber or Lyft in NYC knows that when cabbies earn that medallion, they learn more about driving around that city than anyone else.

Uber In most cases, taking you a cab is going to get you where you want to go much faster than taking a hired car driven by someone who could have arrived in the city yesterday and is relying on Google maps or the Lyft or Uber platform’s internal navigation to get you where you’re trying to go. Plus, cab drivers are subject to specific laws and regulations, and there’s no such thing as surge pricing (at this point) for NYC taxis.

Overall, taking a cab can actually be a better bet than taking a hired car in NYC. This isn’t the case in all cities, but in cities like London or New York, which require their licensed cab drivers to acquire a huge amount of knowledge about the local roadways, the sharing economy doesn’t necessarily offer a better option than a traditional business that gets savvy about tech.

However, quality alone isn’t necessarily enough of a draw. Luxury hotel chains feel fairly confident that their attention to detail in service will put them over the edge for their customers. After all, your Airbnb probably doesn’t include a concierge, room service, turndown service and valet parking. But those are benefits that are typically available only at the highest echelons of hotel service.

Most travelers would probably be happy to get services like those, but not at the price tag at which they’re currently offered. Participants in the sharing economy tend to be people who don’t have a lot of extra money to throw around. Whether they’re trying to save or earn some extra money, the people who spend money in a collaborative economic system are doing so with a sharp focus on convenience and cost.

Some businesses may be able to compete with that, but others are likely to struggle to survive. The key for those floundering industries or individual business moving forward will be to find ways to out compete for the sharing economy. One thing seems certain, though: Sharing is probably here to stay, in spite of its many drawbacks.

Where To Go From Here?

Where to Go From HereThe companies that hit rough patches in this new economy tend to do so because the world isn’t necessarily built for sharing-focused businesses to operate. Car sharing like Uber drivers and hospitality sharing services are running up against issues like local laws and resulting in legal challenges, competition from newer services that haven’t had time to damage their reputations, customer complaints about problems like surge pricing and the relatively uncontrolled nature of sharing.

As for that relative lack of control, that’s going to be a hard issue for sharing businesses to overcome in terms of goods and service. Craigslist, for example, has rock-solid terms of service that absolve the business from liability in case anything goes wrong with activities facilitated through that site.

If you buy a broken treadmill that was advertised as being in perfect working order, Craigslist probably doesn’t owe you anything. When something even worse happens, the company often finds its hands tied. Uber’s difficulty navigating driver and passenger misconduct issues are a great example of the types of challenges these businesses face going forward.

Because Uber’s drivers aren’t employees, they aren’t really obligated to pre-screen drivers and while they can terminate that driver’s access to the platform, the company has historically been extremely hostile to customers who’ve alleged harassment or abuse from drivers.

The “this isn’t our fault, it’s your fault for trusting a stranger” response isn’t going to work if sharing businesses want to stay on top moving forward. The lack of regulation and relative freedom users enjoy on these platforms might not continue if the sharing businesses themselves can’t find a better way of addressing these issues, which toe or even cross the line of legal liability in many cases.

economyUltimately, trust is a major factor in a user’s comfort with a sharing service. A first-time Airbnb user who ends up renting a nightmare apartment that looks nothing like its photos probably isn’t going to come back for a second round. Better vetting might be a way forward for these businesses, but they operate on such a large scale, often globally, making that kind of attention to detail quite difficult.

If traditional businesses find a way to compete with low sharing business prices, trust and quality could become the major battleground on which market share battles are fought. If that’s what’s at stake, can the sharing economy survive in its present form? We’ll have to wait and see how disruptive these businesses truly are. If they’re able to disrupt their own process and continue staying one step ahead, they’ll likely continue to dominate.

Many yellow bikes standing in a line

7 Legal Issues to Consider in the Sharing Economy

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The sharing economy is an ecosystem where people exchange goods and services over the internet, free or for pay. Today’s sharing economy offers numerous opportunities for drivers, hosts, and customers, but certain safety and legal concerns still haven’t been resolved. Businesses in the sharing economy, such as Uber and Airbnb, operate within a legal gray area simply because the law is still learning how these companies work. Also interesting: how can a dataroom support within the sharing economy?

The new economy poses challenges to housing and traffic laws, and it has resulted in labor disputes in many places. Aside from the legalities, there are concerns that companies aren’t doing enough to ensure driver, host, and customer safety. Below are several legal and safety concerns inherent in the sharing economy.

Rights of Ownership

many people standing in line

Selling your spot in a line?

Can someone share something they don’t own? For instance, the app betrspot lets people sell seats and spots in line. Transactions only transfer occupancy and not ownership, but venues may argue that seats and queue spots are non-assignable licenses and can’t be sold. The earliest ventures into the sharing economy—peer-to-peer file sharing systems—were shut down due to copyright violations. Newer ventures involve lesser questions of ownership, but it’s still worthy of consideration.

Consumer Protection Matters

When someone looks for a pet sitter or a handyman service, how do they know they’ll get the services they pay for? There are understandable fears that an unregulated transaction is a risk to consumer safety. For instance, food exchanged on sites such as LeftoverSwap may have been prepared in an unsanitary manner, which endangers the public health. To solve this problem, companies are implementing two-way rating systems for providers and customers. These systems serve as a self-enforcing protective layer for the consumer and engender a sense of community. Additionally, they’re less expensive than conventional enforcement methods, although research raises concerns that participants may practice discrimination at times.

Taxation Troubles

As far as taxes are concerned, is a rideshare provider such as an UberX driver a franchisee or a small business owner? There’s been little agreement on how to tax participants in the sharing economy simply because there are many different business types. In some instances, a participant may not have to pay certain taxes. For example, it’s not clear whether a host must pay an occupancy tax, but they still have to pay federal and state income taxes. In many situations, it is unclear how transactions could or should be taxed.

Insurance Issues

Who is liable?

When someone uses his or her personal vehicle for ridesharing purposes, are they covered by personal insurance, commercial insurance, neither, or both? If an accident happens, a driver must use their personal insurance policy, but the insurer may deny the claim on the grounds that the vehicle was used for commercial purposes. While ridesharing companies usually provide drivers with a commercial policy, these do not cover vehicle damage. For instance, California companies offer $1 million in liability coverage, which is significantly higher than many states’ minimum coverage level for taxicabs. Additionally, a commercial policy may not offer coverage when a ridesharing driver isn’t in service. Various tragic incidents have highlighted the need for better insurance regulations in the sharing economy, and some ridesharing companies have implemented coverage for any driver who’s logged in and ready to take a fare. Generally speaking, the economy presents an opportunity for insurers to come up with novel solutions for businesses and individuals.

Liability Limits

Take this example. A new skier rents equipment from gearcommons only to injure himself in a tumble down the ski slope. Is the company liable? While companies in the sharing economy face many of the same issues encountered by brick-and-mortar corporations, their presence on the digital platform creates entirely new issues. When something goes wrong, an injured person can argue that the service provider negligently screened goods or participants. However, the company can contend they are only an intermediary that serves to connect businesses and people and have no liability. Companies’ claims often reference the Communications Decency Act, which protects online content providers from content-related liability.

Zoning Problems

If someone lives in a place that’s zoned exclusively for residential dwellings, are they in violation of the law if they rent their condo or apartment in the short term? What about renting a single-family home for a weekend? Today’s zoning codes draw firm lines between different land uses and, depending on the location, do not always make accommodations for flexible uses. Cities’ demographics are rapidly changing, and populations are increasingly becoming single, young, and professional. These shifts have already had an effect on housing availability with the rise of micro-houses. This, combined with concerns over housing affordability and the change from a 9:00-5:00 work day to project or freelance-based jobs means the zoning aspect is in need of a fresh perspective.

Permitting and Licensing

While common sense may dictate that a “pop up” potluck event may not need a business license, one can’t really be sure. Many companies in the sharing economy are by-products of licensed and heavily regulated industries such as restaurants, hotels, and taxi services. It is often unclear whether a sharing model requires the same licenses and permits as a traditional operation.

The Final Word

The modification of traditional laws and legal practices is expected to be an ongoing effort for the foreseeable future. Some countries are further ahead than others in terms of supporting the new economy, which can best be seen as a return to a more primitive and basic way of performing transactions. Because of this, we can anticipate significant difficulties on individual, municipal, state, and federal levels. As this emerging economy grows and develops, the law must change along with it. To remain in compliance, participants should keep up to date with developments and protect themselves from unfair legal rulings. By considering the factors listed above, a buyer or seller in the share-based economy can get the services they need while staying on the right side of the law.