How to Use the Power of the Crowd to Build Your Next Business
27 April 2015 ,Monday
You’re a business owner, an entrepreneur. You know to how to connect with people and use your growing network to put deals together. Maybe you simply know how to sell ideas or form stellar teams of people who connect with customers. Knowing those things doesn’t mean you always have a new business idea waiting in the wings. You might even know what you want to sell or offer are blank on the specifics.
There’s no doubt you’ve heard that two heads are better than one. In this day and age of global connectivity, you can bring together groups of people to help build your next business.
The Crowd as a Source of Fresh Ideas
Crowdsourcing allows you to get work done from a crowd of people, typically online. Wikipedia is a well-known site that’s built on crowdsourcing – other people’s time, knowledge, and research skills have gone into creating a living, breathing encyclopedia you can access online. And it’s free.
Businesses can use this technique as well. Mattel recently partnered with Quirky, an internet hub for inventors, to find new toys designs and ideas. People from around the world will be able to submit their best ideas, and those that are selected with be developed and potentially distributed and sold by Mattel. Mattel can keep running it’s business without using additional resources to come up with new ideas, while someone who may never have the chance to work for such a large company can see their idea developed. It’s a great way to get fresh ideas from different sources.
Using the Crowd to Find Funding
Crowdsourcing doesn’t end with product ideas. Once you have a new idea in place, you’ll need to create a business plan and develop a strategy for funding. Here again is where the crowd can help. Crowdfunding, as of the 2012 JOBS Act, is one way to obtain the cash you need to build your business.
You have two choices: rewards-based or equity crowdfunding.
- Rewards-based is exactly as it sounds. For everyone who gives you money, they receive a reward based on the amount they donate. They have no financial stake in your company, only the expectation that they’ll receive what they were promised. This can be a great way to sell pre-orders of a new product.
- Equity crowdfunding is a way to find multiple investors who will have a share of your business, but don’t have to invest large amounts of money to do it.
Either way you go, you’re funded by many people that you would normally never be able to reach without the internet. You never know who will be interested in your project and be willing to buy in.
Using the power of the crowd to develop and fund your next business idea is great way to build a network, develop your brand, and use the internet to grow your business before you even have a product ready.
If you want to determine if your business idea is a viable one or if you need help crafting a strategy for business success, work with the experts who’ve helped countless people make their business dream into a reality. Contact us and let’s take your next business idea to a new level.