Crowdsourcing And Your Business

4:53 AM Amer Bekic 0 Comments

Times are hard financially all over the world and everyone has to find some creative ways of keeping their heads above water. This is especially true for entrepreneurs because of the kind of risks that businesses are facing these days and the kind of financial demands there are to start, run and expand a business. This has called for creative measures in terms of sourcing for capital.

Crowdsourcing is often associated with finding a variety of services or ideas online as opposed to going the usual route of hiring employees or service providers. This has major advantages with regard to variety and cost effectiveness. When you go online, you have a wider variety to choose from and a wider range of cost implications from which you can select the best fit your budget.

Crowdsourcing and your business

So what does this have to do with your business? Well, enterprising entrepreneurs are now using crowdsourcing to get the capital needed for them to start their businesses or do some upgrading like getting a digital menu board for a restaurant or some other kind of food outlet.

So how does this work? It is really quite simple. All you have to do is: 

1.Get on a popular crowdsourcing site. 
2.Post your ‘cause’ i.e. what you need, when you need it and how much it will cost.
3.Offer incentives for each donation. This could be anything from a branded apron to free meals based on the amount.

What’s the catch?

There really is not one. The only thing you have to remember is that you must give people a reason to want to donate to your cause and that is why we need the incentives. It is important to note though, that if you do not reach your target goal within the set time, then all the donations go back to the various donors. This is usually easy to do because you only get the money once it is all there so you will not have spent anything in case you do not reach your target by the set time.

Nothing for free

Speaking of incentives, it should be obvious by know that this venture will not work free. It is therefore important for you to be prepared to spend the money needed to make these incentives. You could include the costs of your incentives within the cost of the project so that you are not in trouble at the end of your ‘campaign’.

One more thing…

Along with getting the money for your business or your upgrade, crowdsourcing creates a loyal client base for your business. People who have contributed to your business will feel a sense of attachment and loyalty to it and become faithful patrons because they want to see the business succeed.

In addition, you could get them even more involved in the said project. For instance, if you were setting up restaurant or an eatery of some sort, you could have them contribute by suggesting the specials for a particular day and having that special named after them or anything else you could think of to keep them participating in the progress of your business.