Crowdsourcing is the new buzzword in the business world. Entrepreneurs operating small businesses and corporate enterprises are using this popular practice to come up with viable solutions to the problems they face when it comes to conducting activities. However, research show it is still unclear to many people. Industry experts explain that it refers to the process of asking a group of individuals with diverse skills to contribute money, offer their services or providing valuable information to such businessmen. Generally, they use such popular online platforms to conduct their campaigns. Many high-tech companies and startup establishments from the Silicon Valley have been using various kinds of crowdsourcing platforms for years.
3 Key reasons a suitable crowdsourcing platform can bring to your business
These experts go on to say that at some point in your life, you have probably come across terms like ‘wisdom of the crowd’ and ‘two heads are better than one’. They clarify that you could compare crowdsourcing to participating in a discussion to find an agreeable solution to a particular problem. They point out the following 3 reasons why upcoming entrepreneurs should serious consider using a suitable crowdsourcing platform to overcome the obstacles they face in running their organizations:
- Brainstorming to come up with new ideas and product lines
The people who are in charge of managing large corporate enterprises are aware brainstorming to come up with innovative processes and products can be time-consuming. If such discussions do not produce the results they desire, it can be a waste of valuable resources. This is something entrepreneurs operating small businesses cannot afford to do. On the other hand, crowdsourcing is an effective way for them to understand what people who constitute their target audience expect from them. This enables them to focus their activities on satisfying the wants of such individuals in the marketplace.
- An alternative way to obtain finance
Many startup entrepreneurs use such popular online platforms such as FundRazr to raise the money from small investors they need to establish and run their establishments. Experts say you can associate with the way non-profit making organizations use to generate similar resources from the public to carry on their activities via microfinancing. They refer to this form of alternative financing as ‘crowdfunding’. They go on to explain that it is a more cost-effective method in comparison to applying for a loan from the bank or inviting people to buy shares.
- Boost efficiency
Crowdsourcing enables upcoming entrepreneurs to outsource specific tasks such designing business logos to a large number of people with diverse skill sets and expertise. For them, this is cheaper option than to hire a professional with a good reputation in the market for the job. Moreover, they are a position to choose the best one from a wide range of options and it is possible for to receive the finished product within a short time. This goes a long way in enhancing the efficiency of their establishments as they can focus their attention on other areas.
Entrepreneurs of startup concerns need to look for viable ways to finance and operate their organizations in order to stand out in the market. A popular and suitable crowdsourcing platform enables them to tap into the creative talents and skills of large number of people as the above 3 reasons show. This can turn out to be a win-win situation for them.