Key Takeaways
- The new world of work has more options for having a side hustle
- A gig can open new opportunities, especially for multiple streams of income
- You can also have fun and a greater sense of satisfaction
- Maybe a gig can turn you into a full-time entrepreneur
In the traditional economy, a person would take a job and hopefully turn it into a lifelong career. This goal is what the conventional dream is all about. You get a steady, long-term income, and you can build your home, own a car (or SUV), raise a family, and get a secure pension.
But that is changing. There is a new economy on the rise, it's called the gig economy. You might be part of it or may find it offers the kind of alternate lifestyle that you might treasure.
What is a gig? This word may have originated in the music industry, maybe in Jazz, where a newly formed band would move nomadically from location to location. They would earn some money (but frequently not much) and, hopefully, one day, a music executive will be in the audience and offer them a record contract. Then they become stars with access to more marketing and production resources to use their talents.
Gig economy
The word gig economy is a new buzzword. It is part of what economists would call the informal economy, meaning it is not included in the GDP figures. People work temporarily, without typical work contracts, but perform jobs frequently for companies that want to outsource some part of their operation to lower their cost or are just looking for some special expertise that they do not possess.
Smaller firms or individuals may also outsource. Think about that IT technician you hired to do some computer work, frequently a young person who is in high school and needs some extra cash to buy the next big software. She is the one who works informally in the shadow economy, with no office or business name. But she performs valuable work, and larger companies should take notice, as there is money at the bottom of the pyramid.
A good example is Uber and Airbnb, they 'hire' people as independent contractors to use their underutilised cars or homes for customers who want a short-term arrangement, a lower-cost alternative. Airbnb hotel suppliers are not part of the formal hotel industry, unlike Hilton and Hyatt. Same for Uber, the poster child of the gig economy, has created a different market space or a blue ocean. In a blue ocean, you avoid the bloodshed of the current players. Change the game instead and compete away from the established firms.
New world of work
Work has changed because of some new drivers. The world is moving to more services, machines and technology (think artificial intelligence and drones). People want things faster and cheaper (think Amazon). This need means the contract of employment has changed. We have more short-term contract employees, temps, on-call employees, independent contractors and people doing PJs (private jobs). Some employees moonlight, afraid that their employers would object on the grounds of a conflict of interest or that it would take away from their full-time jobs. But this does not stop the brave and the entrepreneurial.
On the workers' side, things have also changed. The new worker doesn't want to spend all her time in one company; she wants new challenges. Some Millennials, and especially Generation Z (post-Millennials), have mastered social media and the internet and appreciate the opportunities to reach their full potential. Working for a company is for their fathers and mothers. Their office is their homes, at Rituals, Starbucks or in their cars. The new world of work is 24/7, and work and play are the same.
When work becomes fun, it's when you do something you enjoy, when you can create something new, something that you could be proud of. It's like I created this, 'I was the first to do this, I made a difference here before everyone else'. When you do this, you can reach your highest potential, and your old job could not give you that feeling.
Work in transition
Working as a freelancer might be suitable for the typical professional, but you might have a bigger dream. You might think, "Well, if I can develop my idea further, test the market, and then launch my business." However, you are thinking at a different level. While this may not appeal to the average person, this is for the person who has his sights on being an entrepreneur; someone who has an innovative idea and wants to test a new business model.
Starting as a solo entrepreneur is where it begins. Mr. Solo (or Ms. Solo) may start as a part-time entrepreneur, doing gigs, and then it gets bigger. The feeling of self-sustainability is becoming overwhelming, and an internal debate begins. Should I leave my stable job or stay? Many things can go wrong. Do I need a safety net, as would a circus act?
The short answer will be settled by the mindset that the person has. An entrepreneurial mindset will embrace the uncertainty, but balance that with calculated risk-taking. But it is not so easy to launch out on your own.
Gianpiero Petriglieri et al researched some of the ways independent workers can survive and thrive in the gig economy. Their work, published in Harvard Business Review's March-April 2018 issue, outlines the four types of connections that can help them with the challenges of an unpredictable flow of work and emotional issues that result from being on your own.
The first is place. Place is where these successful soloists have designed so they can work uninterrupted and help reduce the feeling of rootlessness. Working out of a home office with all the amenities of a workplace office can give one the feeling of being at work. These freelancers have the option of designing it their way, a luxury not available in the corporate world. Cubicle life can be toxic.
The second is routines and having a regular pattern of doing tasks, such as a to-do list, a schedule, and making calls at a particular time of the day, gives the solo entrepreneur focus and a performance edge.
The third is a sense of purpose. Purpose is when the entrepreneur takes work that is aligned with their values. This perspective creates a sense of fulfilment, and when the going gets tough, the motivation is there to complete the project.
The last is people. We are all social creatures, and even with all the technologies to connect, face-to-face connections are still the best form of human interaction.
The authors had one last piece of advice: success in making it in the gig economy requires viability (doing productive work) and vitality (feeling alive in one's work). Maybe the gig economy is the opportunity for you.
Sajjad Hamid is an Entrepreneurship Educator who supports entrepreneurs in scaling their ventures. In his spare time in Trinidad and Tobago, he attempts to cultivate organic tropical fruits and vegetables, practising sustainable farming in his home garden.
He is the author of Build Your Legacy Business: Solopreneur To Family Business Hero. Sajjad is a Fellow of the Family Firm Institute. You can contact him at [email protected] or visit www.entrepreneurtnt.com.
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