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Crowdsourcing is an online innovative approach inviting members of a large community to take part in decisions or tasks for a business or organization. Using crowdsourcing for many start-up and development activities can keep costs low for new or smaller businesses when a large number of people tackle very specific tasks within strict parameters. There are many opportunities to apply one or more crowdsourcing techniques to a new or existing business.
Crowdfunding
Crowdfunding is a type of crowdsourcing that uses the basic ideas of micro-finance and online fundraising for nonprofits to raise money for for-profit businesses through the donation of small lump sums from many people. While countries like Hong Kong and Great Britain support these opportunities for small businesses, as of August 2012, companies in the United States face expensive Security and Exchange Commission fees for communicating via internet to raise capital. This will change should The Entrepreneur Access to Capital Act (H.R. 2930) pass, making it easier for small businesses and start-ups to raise money online.
New Product Ideas
Crowdsourcing for the research and development of new products invites individuals to propose ideas and collaborate on developing new products. Invite members of your current client base to suggest new products, or open your invitation to all members of the online community. This is also an excellent way to test usability of new prototypes and services and fine-tune your products based on feedback from members of your community.
Design
Crowdsourcing for design allows input from multiple creative sources. This provides businesses with invaluable information about what people want to see in their product. When using crowdsourcing to help design new products or services, always consider the input from your community carefully. While novice design professionals may come up with innovative and creative design prototypes, existing customers may point out practical issues and requirements with fewer bells and whistles.
Naming and Logos
Businesses seeking to name new products and services or searching for new logos broaden their creative base by requesting input from the online community. While some may choose to allow their user base to vote on the final name, other companies prefer to retain control over their branding by selecting their favorite from the suggestions or narrowing the field down to a select few before allowing an online vote.
Streamline Operations
Incorporate crowdsourcing into your business by using it to complete small or one-time tasks inexpensively. Several websites are appearing online as crowdsourcing bulletin boards to connect sellers and buyers of small services, often for a set fee. Animation and graphic design, short writing assignments and voice-over work are just a few of the popular services available.
Social Media Crowdsourcing
Use your social media accounts as a way to experiment without setting up an account with a dedicated crowdsourcing website or purchasing an app. Businesses use Twitter, Facebook fan pages, Pinterest and other popular social media sites to ask followers for input on all sorts of business decisions via links to surveys or online polls.
Competitions and Contests
Though the phrase may be new, crowdsourcing to come up with new images, logos, mottoes and slogans for businesses has existed for many years through the use of competitions and contests. Running a contest to choose a new slogan not only gives businesses access to the creative ideas of many, it is also an excellent marketing method to increase visibility to consumers.
About the Author
A former financial adviser with more than a decade of experience in personal finance and small business banking, Sarita Harbour is a professional writer specializing in personal finance, small business and content marketing techniques. Her writing appears online at many websites including The Business Finance Store and Zerys.com. Harbour holds a bachelor's degree in psychology from the University of Guelph and the Personal Financial Planning designation from the Institute of Canadian Bankers.
References
- Harvard Business School: 3 Keys to Crowdsourcing
- "Inc." Magazine: How to Crowdsource Your Research and Development
- "Entrepreneur" Magazine: Seven Ways to Incorporate Crowdsourcing Into Your Business
- CNN Money: Kickstarter - How crowdsourcing went mainstream
- "Forbes" Magazine: Crowdfunding Set to Explode With Passage of Entrepreneur Access to Capital Act
- Congressman Patrick McHenry 10th District of North Carolina: Crowdfunding - The Entrepreneur Access to Capital Act
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