Crowdsourcing done the Right Way

For many large projects, crowdsourcing is often a good option to get the work done on time. However, it also presents quite a lot of challenges, such as managing the amount and variety of people working under the project. So how do you pull off a successful venture?

Getting the right kind of people

One of the trickiest things about crowdsourcing is getting the right group for the job. Unlike regular employee searches, you don’t have the liberty of scrutinising the people who join your venture. After all there might be hundreds or thousands who sign up for the project.

As speaker Jan William Alphenaar shows in this presentation, you can save time by having a definite audience group in mind. Ask yourself all the pertinent questions with regards to your target crowd, such as where they can be found and what channels of communication (such as social media) they commonly use. Talking to this crowd and convincing them to sign up is all together another challenge. Your call to action must be clearly directed towards them so that they will immediately spot it among the host of posts that regularly come their way. Speaking in a language familiar to them helps a lot here. You also need to clearly state the nature of the work and what they can expect to gain from it to convince them that this is a worthwhile task to undertake.

Managing your people

Zach Shaw describes aptly the challenge of managing a crowdsourced group for any project:

"Seems easy enough on paper putting up a crowdsourcing campaign. But, it’s not like throwing open your guitar case on the sidewalk, it’s actually a lot of work."Before handing out the tasks that need to be done, test it to ensure that it can be easily grasped by your audience. Unlike the usual work process in many outsourcing projects, you won’t have time to review all of the incoming contributions just to see whether everyone has done it right. Thus, the process must be very clear cut the first time you hand it out. For automated procedures, like surveys for instance, it would be a good idea to test the system on a small group first before making it live.

Another important work to be taken care of is handling the submitted contributions. With the above-mentioned automated submissions you don’t have to worry, since the system you implement will do it for you. But with manual submissions it would be best for you to set up a more efficient means of handling and categorising them. For instance, it would be better for you to set up a different submission point for each task category, rather than having to browse through all of them finding category markers.

Know the legalities

As it is, crowdsourcing is still very much covered by pertinent labor and intellectual property laws. It is best that you familiarise yourself with these to avoid issues. You also need to consult with experts to determine if the method payment of services is secure for the benefit of your outsourced team.

Learn the ins and outs of crowdsourcing projects by contact UFOstart AG, the crowdfunding and crowdsourcing platform ready to assist your venture. Get started now and check out how to start your venture and become an expert or investor in the world of startups. Interested in how you can leverage the power of the crowd for your startup? Like us on facebook and follow us on twitter for daily updates. 

Who is this equity?

You’ve got a great niche idea and the business plan is done. You’ve lined up a crowdsourcing plan for start-up resources. The next step is identifying the people you will entrust with helping you to develop your new business.

As you form your initial compensation plan for new employees, don’t skip the step of creating an equity stock-option-plan for the people who will help your business succeed.

A powerful tool in building your start-up.

Forbes quotes PayPal founder Bill Harris as having said to entrepreneurs that stock options are “the most powerful tool at their disposal in building a successful business.” Harris believes that founders of startups need to seek out people who would want equity because, “You need people who are willing to take risks. And then you need to reward them.”

This is a win-win: your company doesn’t have any cash outlay and employes benefit from the stock’s rising prices while not having to worry about stock market dips. It’s a perfect employee incentive that usually kicks in after a year of employment. Better still, Harris says vesting in four years is the biggest opportunity: “By giving somebody four year options today and the company grows you’ve locked in today’s value for four years.”Harris’s bottom line is for the founder a stock option plan is the key to “recruit, retain and motivate.”

What type of plan is best?

The National Center for Employee Ownership (NCEO) reports, “Broad-based options remain the norm in high-technology companies and have become more widely used in other industries as well. Larger, publicly traded companies such as Starbucks, Southwest Airlines, and Cisco now give stock options to most or all of their employees. Many non-high tech, closely held companies are joining the ranks as well.”

NCEO outlines the key options for broad-based employee ownership:

• An employee stock ownership plan (ESOP)
• A type of tax-qualified employee benefit plan in which most or all of the assets are invested in stock of the employer
• A stock option plan which grants employees the right to buy company stock at a specified price during a specified period once the option has vested
• An employee stock purchase plan (ESPP) which gives employees the chance to buy stock, usually through payroll deductions over a 3- to 27-month "offering period"
• A several other forms of individual equity plans.

The Center adds, “options are still the currency of choice when it comes to attracting and retaining good employees; many high-tech workers won't take a job without options.”

And consider this caution….

NCEO wants to alert founders of startups to consider these points: “how much stock they are willing to make available, who will receive options, and how much employment will grow so that the right number of shares is granted each year.” If a founder grants numerous options too soon, future employees may be left without this incentive. However you approach your equity methods UFOstart AG is a crowdfunding and crowdsourcing platform ready to assist your venture. Get started now and check out how to start your venture and become an expert or investor in the world of startups. Interested in how you can leverage the power of the crowd for your startup? Like us on facebook and follow us on twitter for daily updates. 

A Way To Get Your Venture Funded: Be Ready With A Compelling Pitch For The Catchers

Investors and experts that are willing to support ventures wants to hear only the compelling pitches that don't take up a lot of their time. In order to pitch your idea successfully to get the funding that you need, you will need to show your passion for your idea, first and foremost. Once you can clearly define your idea then you should be able to ask for how much you want and how you will use it. It even helps to show statistics to illustrate the upward success of your idea(s). Envisioning how big your company will become is a successful thought to have, but you must make sense to convey your idea to others clearly.

The biggest mistake we make as business owners is getting so excited when discussing our idea. We begin to talk too long or give too much detail without getting to what is most important. If you are having difficulty explaining, try rehearsing it in front of a mirror, or present it to someone who knows nothing about you business. 

Practicing to communicate your message clearly before throwing it out on a platform can be the saviour of your idea. Investors will be quick to pick it up and experts may want to help you get it up off the ground from the start. However you approach your funding methods UFOstart AG is a crowdfunding and crowdsourcing platform ready to assist with your venture.

Get started now and check out how to participate in crowdsourcing, and how to become an expert or investor in the world of startups. Interested in how you can leverage the power of the crowd for your startup? Like us on facebook and follow us on twitter for daily updates.