Recently I discussed businesses that take advantage of information asymmetry. I defined information asymmetry as the scenario where when two parties are in a deal, one knows more than the other. Thus the more knowledgeable party ends up having an unfair advantage over the other. I went at length in explaining and citing examples of businesses in Zimbabwe that actually capitalize on information asymmetry. You can kindly check out that article if you want to get more detail. In this article, I want to focus on businesses that provide solutions to information asymmetry. In essence, these are information-based businesses.
Online Directories Or Listings
I wrote an article on this recently. This business goes a long way in dealing with information asymmetry. For example, you can have an online directory or listing for rental properties or even resort destinations. Such a platform will enable prospective customers to have access to comprehensive information. This will help them to objectively do comparisons that will help them make informed decisions. This will shield them against scenarios where unscrupulous services providers can dupe or misinform them just so they settle for them.
Content creation comes in many different forms and formats. Some common examples are blogging and vlogging, amongst several other variations. The whole crux is to provide rich, well-researched and up to date information on wide-ranging relevant topics. An example you can relate to is this platform Startupbiz Zimbabwe. This platform employs the use of blogging to provide you with robust business and finance content that can aptly inform you on these areas. So, generally, businesses centred on content creation are well poised to deal with information asymmetry.
In any industry, as I always say, consultancy services are sought after. If you are a guru or expert in a particular discipline you can effectively become a consultant. I have often underscored the importance to not think of consultancy as a fancy high-end thing. If you are an expert in make-up artistry or hairstyling – you can actually become a consultant. The interesting dynamic in consultancy services is that you must be the real deal. You must actually produce tangible results and have a proven track record. Consultancy services thrive when there is concrete proof that you are producing results. This directly or indirectly primes such service providers to do thorough work. They will be objective and full of integrity for them to land customers. In that whole mix, information asymmetry becomes dealt with. This is something that happens at times without the consultants even noticing it.
Tutoring And Specialized Training
Tutoring and specialized training go beyond just general teaching and training. The goal is to provide a richer teaching and training experience than from the general setup. Thus tutors are commonly known for equipping you with superior knowledge. This is easily relatable for anyone who has been under some form of tutelage – whether academically or in any other area. The same goes for specialized training which can come in form of masterclasses, specialized courses, and the like. People wielding premium knowledge in certain areas will bear it all for you under such specialized training. All in all, businesses that focus on these areas provide solutions to the wide gap that tends to exist between those who are knowledgeable and those who are not.
This is a broad cluster of businesses that have a huge role in providing solutions to information asymmetry. What are agencies by the way? An agency is simply a grouping of individuals that collectively work towards performing certain specific tasks or providing certain specialized services. Thus you can find examples such as Marketing Agencies, Travel Agencies, and PR Agencies, just to mention a few. These are entities that provide detailed and well-researched solutions in areas where people ordinarily can be manipulated because of information asymmetries.
Bear in mind that though that in whatever situation you find yourself in it is wise to research the subject matter. Being considerably knowledgeable to a certain degree will help you to safeguard yourself against falling prey to information asymmetry. Love to study up or research on areas that are usually involved in.