Crowdsourcing is a model where a group of people come together to support a business or project. Whether financial, creatively, or as a think tank for problem solving, crowdsourcing is an effective tool for businesses especially during tough economic times.

Financial Crowdsourcing (Crowdfunding): While the purse strings are starting to loosen for traditional small business funding, the majority of businesses seeking funds still do not qualify. That’s where the laws of supply and demand come into play.

The market is demanding small business funding. Traditional funding is in low supply. The marketplace – the crowd – creates a market for funding. Many people building businesses and projects that may not have otherwise been funded.

The most popular source for funding is called Kickstarter where creative projects are funded, however there are several websites that have come on the scene in this space.  In short, the crowdsourcing model allows entrepreneurs to pre-sell a product or a service at a discount by allowing participation in the business at various levels. Everyone wins as the company raises needed funds, and the purchasers get quality products or services, usually through a company they have a relationship with or were referred to as many of these campaigns take on a viral nature and are widely spread via social media.

Creative Crowdsourcing: As small businesses are being created we’re seeing more innovations in how we do business – and how businesses interact with each other. Creative Crowdsourcing is a collaborative effort to solve a specific problem or get feedback for a variety of business activities. From designing logos to solving staffing problems small businesses are sounding boards and learning from each other.

The biggest advantage is the low cost. Gone are the days of hiring focus groups to pick a logo or tagline. Just bring it to your crowd – your resources of other small business owners – and ask them to provide feedback – for free!

Solopreneurs can remain solo now that they have financial and creative backing from other like-minded business owners. It’s pretty amazing and we can’t wait to see how small businesses develop as a result of the collaboration.

If you are a growing business and have not yet looked at the possibilities of how a collaborative approach can help your business, give us a call and we’d be happy to strategize with you.