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What Is A 'Shared Resource'?

A Shared Resource is a durable asset that you create once, and then charge the customers for using it many times.

Classic examples of this form of value are gyms, museums or amusement parks.

It's critical to find a balance in usage levels of the asset: if you have few customers, you won't be able to spread out the costs, but if you have too many the asset will be overcrowded, which will diminish the experience for the user.

Josh Kaufman Explains 'Shared Resources'

A Shared Resource is a durable asset that can be used by many people. Shared resources allow you to create the asset once, then charge your customers for its use.

In order to create a successful shared resource, you must:

1. Create an asset people want to have access to.
2. Serve as many users as you can without affecting the quality of each user’s experience.
3. Charge enough to maintain and improve the shared resource over time.

Gyms and fitness clubs are a classic example of a Shared Resource. A fitness club may purchase forty treadmills, thirty exercise bikes, six sets of free weights, a set of kettlebells, and other useful but expensive equipment that lasts a long time.

The club’s members benefit by being able to access this equipment without having to purchase it themselves—instead, they pay an access fee, which is much easier for an individual to afford. (Most gyms combine access to their Shared Resource with Services and Subscriptions, a common example of Bundling.)

Businesses like museums and amusement parks work in much the same way. Whether it means studying a Monet or sitting on a roller coaster, Shared Resources allow many people to take advantage of experiences that would otherwise be too expensive.

The tricky part about offering a Shared Resource is carefully monitoring usage levels. If you don’t have enough users, you won’t be able to spread out the cost of the asset enough to cover up-front costs and ongoing maintenance.

If you have too many users, overcrowding will diminish the experience so much that they’ll become frustrated, stop using the resource, and advise others not to patronize your business, diminishing your Reputation.

Finding the sweet spot between too few members and too many is the key to making a Shared Resource work.

Questions About 'Shared Resources'

• Does delivering value as a shared resource make sense for your business idea?
• If so, what do you need to plan for to make it successful?

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"The joy that isn't shared dies young."

Anne Sexton, Pulitzer Prize–winning poet

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Share this concept:

https://personalmba.com/shared-resource/

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