Entrepreneur Depression or Founder Depression Is A Real Thing Cartoon
Day: July 5, 2019
Is the Subscription-Based Revenue Model the Future?
If you haven’t noticed, subscription services are all the rage. Nearly every business sector has been impacted as the subscription model of revenue has become quite trendy. For a number of reasons, a subscription model can be quite attractive. But are subscriptions services really something that every business should consider? Will everything in the future be “subscriptionized” and affect every product and service we use?
Some seem to believe this will be the case. While the subscription model accounted for only $57 million in revenues in 2011, it climbed to $2.6 billion in 2016. Likewise, more than 40 percent of all retail revenues are acquired via subscription services today. As the Information Age and the Internet have advanced, so has the subscription model. But just how far subscriptions services will extend remains a bit of a guess.
Why is the Subscription Model So Attractive?
Just ask Bold Leader Tien Tzuo, the Founder and CEO of Zuora who coined the term “subscription economy” and authored the book “Subscribed: Why the Subscription Model Will be Your Company’s Future – and What to Do About It.” In contrast to buying a product or service when needed, a subscription model allows ongoing access to these items. Just look at Netflix, Spotify, SalesForce, Amazon, and others who have jumped on this model.
Both consumers and businesses find this type of approach attractive for a few reasons. For consumers, subscription services tend to be more psychologically appealing since a larger upfront payment is not needed. Likewise, the model allows customers to quit anytime. And most subscription models have fewer ads and marketing interactions, which is also preferred.
For businesses, the subscription model also offers attractive benefits. Naturally, subscription services provide more predictable, recurring revenues over time. This is particularly appealing for investors. Likewise, the subscription model allows price diversification strategies based on customer needs. And customers tend to be more engaged in the product or service being provided. Lastly, though costs can be higher initially, subscription services ultimately increase profits and lower costs. These advantages help explain why subscription services have become increasingly popular.
Are All Businesses Suited for the Subscription Model?
For companies like Zuora that specialize in helping businesses adopt subscription models, they foresee this being a universal trend. But others are not so sure. Clearly, businesses that provide content to consumers, such as information, education and entertainment, are ideal candidates for subscription services. Likewise, software programs and other cloud-based services similarly adapt easily to a subscription model. Businesses like Adobe and Netflix have done extremely well in this regard. Even attorneys, dentists and other professional services now offer subscription services as well.
But what about other companies that provide products? Companies like Blue Apron and Dollar Shave Club have proven that subscription services work for products also. But these types of products have unique features. For one, both provide products that are needed on a frequent and recurring basis. Likewise, they address the needs of a specific consumer segment. This does not apply to all companies and products in the marketplace. To suggest that all products might be offered through a subscription model appears to be a stretch.
“People won’t tolerate a world where everything is subscriptionized,” he said. “For the things that you really care about, you’ll definitely subscribe.” – Eddie Yoon, author of Superconsumers
The Bottom Line for Subscription Services
It should be recognized that a subscription model differs from other revenue models. It tends to shift the focus away from new customer acquisition and onto customer retention. Yet, for businesses that have yet to reach adequate scale and size, balancing both pursuits can be challenging. This is especially true when companies provide products and services infrequently since new customer demand will be higher. In these instances, the costs associated with a subscription model may be too high.
An increasing number of businesses will adopt a subscription model in the coming years. In many regards, this makes logical sense from both a revenue and consumer side of things. But for businesses that offer products and services infrequently to customers, a subscription model will not likely work. In these instances, customers will prefer traditional purchasing models. And these types of businesses will realize better profits through traditional approaches as well. While a subscription model is very attractive for many companies, it is not a one-size-fits-all.
Founder Depression: A Side Effect of the Entrepreneurial Bubble
Being an entrepreneur is challenging. It’s not uncommon for startup companies to fail. In fact, about 90 percent of all tech startups never make it off the ground. But increasing evidence is showing that entrepreneurs experience depression more commonly than others. As a result, the condition has even earned its own term: “founder depression”. And like the millions who suffer from routine depression, many entrepreneurs are not even aware they have it.
Much of the problem related to founder depression has something to do with the nature of entrepreneurs themselves. Unable to see past their own limitations and weaknesses, they fail to appreciate the features of entrepreneur depression. Likewise, their innate personalities may actually heighten their risks for these conditions. In addition to understanding the disorder, it is important to know where to turn for help. And given its prevalence, these are essential insights that any entrepreneur should have.
Founder Depression by the Numbers
The statistics regarding entrepreneur depression are not favorable. In a study out of the University of California in San Francisco, a total of 242 entrepreneurs were studied. Based on the data, almost half had experienced some type of mental health issue in their lives. Depression led the list with other conditions like anxiety and attention deficit disorder being close behind. And overall, it was found that about a third suffered from founder depression.
At first, these statistics may be quite shocking. However, it is common for entrepreneurs to experience frequent highs and lows. This has often been compared to a roller coaster of emotions, which heightens the risk for entrepreneur depression. But the ups and downs of business is not the only issue at hand. In fact, entrepreneurs seem uniquely vulnerable to depressive conditions based on their personalities.
Common Ground for Entrepreneur Depression and Euphoria
As it turns out, the same features that make entrepreneurs successful also increase the risk for founder depression. In general, key personality attributes for entrepreneurs include risk-taking, goal achievement, and incessant innovation. These allow opportunities for unique success in the marketplace. But when risk-taking fails, goals are not attained, and progress stagnated, this becomes fertile ground for entrepreneur depression.
In addition to these issues, many individuals simply do not have an entrepreneurial personality from the start. Despite the fact that two-thirds of all adults want to be startup founders, much fewer have what it takes. A discrepancy between wanting to be an entrepreneur and having the inherent characteristics to support success is also a problem. And similarly, this can predispose someone to founder depression as well.
Recognizing (and Treating) Founder Depression
Like major depressive disorder in other situations, founder depression requires specific criteria to be present. For one, a depressed mood or a loss of interest in pleasurable activities must be present for at least two weeks. In addition, other common features need to also be present to a significant degree. These features can include feelings of exhaustion and fatigue, sleep disturbances, appetite changes, and others. If there is any concern that entrepreneur depression is present, then seeking depression treatment is imperative.
Knowing that founder depression exists, and appreciating its common features, are important steps in the right direction. But at the same time, knowing where to turn next is also important. Experts recommend seeking help from a physician, counselor, or therapist. Likewise, numerous support organizations and hotlines also exist. These include the Anxiety and Depression Association of America, the National Alliance of Mental Health, and others. If any suspicion exists that founder depression may be present, encourage seeking professional help.
Awareness and Expression Remain Important
As greater awareness of founder depression grows, barriers in seeking help and treatment will decline. Unfortunately, the stigma associated with depression does exist, and this can be particularly problematic for entrepreneurs. But failing to identify and manage founder depression will only make things worse while increasing health risks. Entrepreneur depression, like other depressive conditions, reduces concentration, and affects good decision-making. As a result, things can go from bad to worse if not treated. From this perspective, it is therefore essential that the business world and beyond acknowledge that founder depression exists. In turn, this will pave the way for a better future for all.
Multimodal Transport and Transportation Technology Driven by Inevitable Growth
Human civilization is, in many ways, the result of a raucous process of migrations, transformations and transferences. Rapid economic progress, robust international trade and transportation technology have spurred massive increases in trade. It is the same with tourism across international borders. Oceans and continents are no longer barriers but are now avenues. The rapid growth of multimodal transport has also contributed to the increase in trade.
Recent statistics bear witness to the effects of transportation technology. The value of merchandise exports rose to a staggering US$17.73 trillion between 2016 and 2017. It is a sum unimaginable a few decades ago. Tourism also registered an impressive expansion over the same period. It grew by around seven percent as international tourist arrivals reached some $1.32 billion across the globe. This is according to a report issued by the United Nations World Tourism Organization (UNWTO).
Multimodal Transport: The Freedom of Movement
Clearly, transportation technology and multimodal transport have combined to encourage better trade opportunities. It also aims at increasing the mobile populations. Freedom of movement has invigorated both cultural exchange and commercial enterprise. And mobility has become key to any nation’s progress and economic prosperity.
Where shipment is concerned, the capability to combine different means of transport so cargo could be facilitated more efficiently is an innovation embodied by multimodal transport.
The rise of a new development paradigm has directed greater public attention to the need to improve the transportation technology in virtually every corner of the world. In Singapore, for instance, transportation technology has become vital to the continued growth of the local economy. The country’s Mass Rapid Transit (MRT) system has blossomed into one of the most reliable and extensive railway networks in Southeast Asia. Such are the economic benefits that brought by the system that the Singaporean government has embarked on. The public works on the MRT network may last until the end of the coming decade.
Development experts in India, too, have begun to realize the tremendous economic benefits of an efficient, well-maintained national transportation technology. The world’s third largest economy depends on improved public transportation to fuel its progress.
Transportation Technology of Caltrain
The rapid growth of public transport infrastructure throughout much of the world has highlighted the necessity of transparency and well-organized information dissemination. This need is perhaps illustrated best in California’s Caltrain system. It is the fastest and most low-cost way to travel between San Francisco and San Jose. But while the transportation technology is state-of-the-art, long boarding times and service interruptions limit its utility for many would-be commuters. Some Caltrain staff claimed that 66 percent of the railway system’s delays are due to issues like passengers carrying bicycles onto the trains.
Modern communications and transportation technology has begun to provide a solution. Startups are now working to improve transparency for the Caltrain railway network. For now, the goal is to use crowdsourcing data in an effort to move ticketing operations the calculation of fares to the smartphone. In all, the fledgling companies have made remarkable progress. Mobile apps like Interphone LLC’s Caltrain can now automatically plan the most efficient trips possible for commuters along the Caltrain route. More effective mobile communications might even help inform passengers about relevant public transport rules and policies – such as those concerning the transport of bicycles along the system, if so designed.
The Silk Road: Communications and Transparency
Communications and transparency will no doubt play a crucial role in the success of China’s ambitious and much-publicized Belt-and-Road Initiative (BRI). The sprawling vision behind the effort connects Asia, China, and Europe along with several integrated transport systems. The ultimate aim is both formidable and multi-pronged: to boost economic progress, promote sustainable growth, and improve economic relations among contributing nations.
Communications will no doubt perform a critical function in the colossal endeavor, and the world knows it. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has declared that – in order to achieve its objectives — the BRI must make full use of modern information and communications technology (ICT). This will improve transparency and connectivity between participating nations and peoples.
“In addition, ICT contributes directly and indirectly to economic, social and environmental aspects of Sustainable Development Goals (SDG),” reports UNESCAP.
Today, more than ever, geography is an influence rather than a restraint. Communications and transportation technology have therefore stepped onto the center stage. National wealth is ever more derived from the effects of mobility and real-time communications.
True, human culture and economic development may be said to be an impossible blend. But true also is the fact that with national progress comes the building of an identity in progress – one that is, let us hope in most cases, more confident, more optimistic, and more efficiently geared for new ways of doing business, new methods to cross time and distance, new means of communication.
