Pop-Up Businesses

In the February 25th issue of Businessweek, futurist David Zach discusses his prediction of an emerging trend toward "pop-up businesses" in the next 10 years. Pop-up businesses are defined as dynamic groups of people with specific talents who are dedicated to achieving a goal and then disbanding. Think of it as a temporary company. Think of it as a business that uses a temporary staffing agency to fill personnel needs, but where the entire company is temporary. Finally, think of it as an entire company built around a project--a project with a beginning, a deliverable product or service, and an end.

The pop-up business is interesting in that it has the advantage to tap into the vast underutilized resources of retiring baby boomers, other aged and retired executives, skilled personnel now swelling the unemployment lines, and various people--from moms to high school and college students--who just need a little extra income. Yet, it does not have the pressure of most traditional businesses--staying in business. This is a sea-change in the way business trade takes place. The advantages are many:

• Low overhead; simply rent space or office virtually from where ever the employee resides.
• Easy business forecasting; leaders know what they need, how long they need it, and the cost.
• No "bench" expense; a problem with many traditional companies is the need to keep people on the payroll in anticipation of new business. Not so the pop-up company; they only hire what they immediately need.

Of course, there are many disadvantages or a least undefined issues to be addressed:

• Who guarantees product/service? If the company is no longer in existence, who will stand behind the product? This may give rise to yet another emerging business--product guarantors.
• How do they build a business reputation? If you are not in business over the long-term, issues of brand, reputation, and market ownership have no meaning. Who will hire the pop-up business? What will the criteria be for engaging is they are always new? It is in this area that the emerging social networks will play a role. The pop-up business will become organized and institutionalized crowdsourcing and the brand and reputation will reside with the individuals in the pop-up business.
• How will the be engaged? Looking in the yellow pages or on the Internet for a company with given products, services, or attributes will not be possible--the pop-up business does not exist until needed. Therefore, new ways of contracting will be needed. A starting model may be Web sites such as http://elance.com. The pop-up business becomes a social network phenomena where markets are created to bring together business needs with individuals who can meet the need. The difference from Elance will be the emergence of the "general contractor" or leader of the pop-up business who manages the hiring, scheduling, financing, and delivery of product or service.
  

The possibilities boggle the mind. Read more about the original discussion at:

http://images.businessweek.com/ss/09/02/0225_inventions/16.htm

What do you think? We would love to hear your opinion.