The old economy was anyway under pressure but the pandemic is amplifying the changes and the brutality of the new generation will definitively transform our world.
Why the new generation is so brutal?
- They were educated under the belief that without an MBA it would be difficult to obtain a nice salary, so they were lied to from the early beginning, with an MBA their salaries are remaining low and the opportunities too little.
- They are the first victims of the UBERIZATION of the economy, victims of what they are using/promoting and victims of what they serve to earn little money, the slaves of a system.
- Academic studies are immediately outdated; if a marketing teacher is really good at online marketing he would be the proud owner of few e-commerce websites instead of a being a low paid teacher.
- They dislike traditional medias, they don’t trust governments, the Facts-checking approach is revealing the lies they (we all) are surrounded by.
- They understand that they can access information, learn, find someone whom knows better, hire freelancers, partner with others … all this in a span of few clicks. Avoiding their own weaknesses became their main strength.
- Individual freedom has been impacted, less to say, by the pandemic situation and economic prospects are again lowered. They rightfully feel prisoners of a situation which doesn’t really concern them.
When a tutorial on YouTube is bringing you more than hours on a University chair, your life is derailed and disruption is your only tool, how will the brutality of their actions translate?
- Mobility is the KEY.
When your clients are in Paris, your suppliers in China, your media buyer in Israel, your developers in Philippines and your CRM in Morocco there are no reasons to setup a company in a high tax environment and to face the administrative burden of your country of nationality.
If you dropship or sell services over internet you better do it from a cool location, enjoying life at the maximum, your government will not like it, you will LOVE IT.
Right after covid related travel constraints a bright generation of entrepreneurs will flight out from their countries of residences, so the dense efforts on VAT regimes from governments knowing the ineluctable … at least the clients will pay taxes in lieu of the entrepreneurs.
Finding everything on the Net also means that pricing is crucial, with less interactions and less opportunities to protect high margins, competitors leaving in the poorest countries and a multiplication of offers and short circuits from factories to clients, the right price is a low price.
The price war is brutal, leaving few wounded and many dead. To survive you have to adopt a sort a regular pricing (i.e like in the “old” shops), as logistic and media buying costs could be compared to commercial rents.
3. Close it or scale it up
A mono-product website launched in 3 days, 3 days of traffic from Facebooks and others; if you are making money you scale it up, if not you close it.
It’s brutal, especially for the ones whom did invest 3 weeks instead of 3 days for the setup of their website.
What about the bright sides of this new generation of entrepreneurs?
- They are using the system, often promoting useless products and services, the system is dying of its overconsumption and they fight it from inside – transforming the world and in the same time extracting their own, and due, benefits.
- They are in the process of reinventing the future with Artificial Intelligence, blockchain, e-commerce and digitalization of the entire economy.
- They are bringing simplification, automatization, fighting painfulness of work and caring more about environment.
Could a 40+ years old advisor contributes and partner with this new generation of entrepreneurs?
- If you are proud of what you did: chances are low, if you are sufficiently unsecure and so open to new solutions and concepts there is a small window of opportunities.
- 20 years of professionals’ mistakes is an invaluable asset, in a fast economy avoiding troubles is very effective.
- Interpersonal skills are not outdated and the new generation, exchanging more by WhatsApp and Zoom, is formatted to straight answers and direct questions. They need to mitigate their risks of not obtaining the support they deserve from older guys, so having an old chap on board is a good idea.