Start-ups can accelerate their growth through the effective use of Crowdsourcing.
Crowdsourcing brings on-tap and on-demand resources to your venture bit-time, part-time or full time. Online, flexible to the extreme and round the clock, from student to rocket scientist, 24×7.
It takes the sweat out of developing your idea. But how specifically should you use Crowdsourcing to really make the difference?
Here are 5 ways in which Crowdsourcing can transform start-ups:
1. Crowdfunding: Need to raise money? Crowdfunding sites are particularly effective at helping entrepreneurs connect with smaller amounts of earlier stage funding. Something the VC’s are increasingly failing at. Kiva and Innovatrs are two pioneering examples.
2. Crowdsourced Digital Design: Today digital design is more essential than offices, phones, flyers or business cards. From Website design to iPhone apps, logos, Facebook fan pages or Twitter sites. Also, product design and development. You can buy low cost logos and Websites at 99Designs or fuller, more advanced design services at Crowdsourced agencies such as blur Designs. They are way more cost effective than the big name agencies and more sophisticated than your local graphic wonderkid.
3. Crowdsourced Marketing Services: There is a new crop of start-ups that offer more cost effective and comprehensive marketing services than was possible before. From niche online ad programs at Trada to full service marketing, advertising and PR campaigns from blur Marketing. Suddenly real marketing or advertising programmes and experts are available to the earliest stage start-up – no longer just the preserve of big brands.
4. Crowdsourced blogs and articles: Every modern start-up needs to be expert in social media marketing and digital PR. It’s the most cost effective way to build early stage buzz and word of mouth. But the currency of social media is content. Someone has to write the blogs and articles that will drive your early adopters and influencers. Who’s gonna produce that content? Now you can get help developing your own writing or outsourcing it to Crowdsourced writers agencies.
5. Crowdsourced Hourly Workers: If you need hourly, piece-time workers then forget Monster. A new crop of competitors have taken on the big Web based recruiters and informal job boards with online, Crowdsourced, part time marketplaces for geeks, students, accountants, researchers, testers, packers, warehouse stackers and more. eLance and Freelancer.com lead the pack. They take the sweat out of finding cheap folk for those simple, repetitive tasks.
Crowdsourcing is a trend that no start-up can afford to ignore and investors are starting to demand it. How are you using Crowdsourcing?
20/04/10
ianbentley
Thanks for this … It is contains really sound advice.I have a startup that focuses on providing a unique, cost-effective, broad-application solution to transform sewage and wastewater into PERFECT quality drinking water.
I have managed to stir the interest of some prominent VCs. However they obviously have certain requirements before they will consider funding. Amongst these are a professionally developed business plan.
The business model is unique (at least in this niche) and it brings on board propiety technology that will need to be prototyped and ultimately patented.
Another urgent need is for a website to increase our credibility and to make us look more 'professional'.
We estimate we need seed capital of roughly 45,000 USD to get us to the stage where we can approach the VCs I spoke of earlier with REAL confidenence.
So far we have not found a crowdfunding site that is really a proper 'match' for this project.
Any advice on who to approach and how to take this forward would be greatly appreciated
Many thanks!
Ian
rickcolosimo
Ian, if your solution fits a nonprofit-y model, you might consider social funds of various flavors. If your goal is to make a reasonable amount of return or income, going to a foundation makes sense. If your goal is to get rich, then yes, VCs will want to know that you've put the thought into the business model to sort through the various challenges before they spend time thinking about whether it fits their investment profile.Philip
You should look at http://www.Innovatrs.com and register at http://www.Innovatrs.net. Enjoy it.Ian Bentley
Thanks Phillip!I some how didn't get an alert about your post. I'll certainly try both sites … and give you a feedback on progress
Best
Ian
Rick Colosimo
The crowdfunding idea (http://rickcolosimo.com/2010/05/crowdfunding-a-…) can be a deadly approach for a US startup. Such approaches can trigger the seemingly punitive regulatory requirements for public offerings, throwing massive wrenches into the works. As I note in my post, Kickstarter has a policy against using it for investments.That said, there are other approaches to “crowdfunding,” broadly defined, that make a lot more sense.
Ian Bentley
Thanks very much, Rick. I'd love to hear more.You can email me directly on mwibent@mweb.co.za if you so wish. My need for the financial assistance we seek is dire and immediate.
However, if anybody else reading this is prepared to take the 'risk' of putting that $45,000 up front … we will definitely make it worth their while.
Try us!
From Ian and Darrell in' World Cup Gone Crazy' South Africa