Crowd sourcing definition

"Crowdsourcing is a type of participative online activity in which an individual, an institution, a non-profit organization, or company proposes to a group of individuals of varying knowledge, heterogeneity, and number, via a flexible open call, the voluntary undertaking of a task. The undertaking of the task, of variable complexity and modularity, and in which the crowd should participate bringing their work, money, knowledge and/or experience, always entails mutual benefit . The user will receive the satisfaction of a given type of need, be it economic, social recognition, self-esteem, or the development of individual skills, while the crowdsourcer will obtain and utilize to their advantage that what the user has brought to the venture, whose form will depend on the type of activity undertaken".


Creation
Generation of new ideas, Content, Media
Film-making, software Generation, Virtual Choir, Flitto
Voting
Decision and Choice Making
Threadless , FashionStake , "who wants to be a millionare ? ", Netflix
Wisdom
Accessing Knowledge and experience
Goldcorp, "Who wants to be a millionare ? ", Amazon Books, Incentive
Tournaments
Competing for the best Solution
NASA Tournament Lab
Collaboration
Multi-Tasking on a project
Wikipedia, Linux, Virtual Company Design

Crowdsourcing Application Idea Generation --* IDEATION - the creation and augmentation of an original idea * Beware intellectual property risks
May not be suitable at the early stage of a company UNLESS you just want to exploit an idea without building an organization
Examples- Innocentive , Nine sigma, Qmarkets , Mindhive , Board of innovation, AHHHA

Advice
Accessing Experts for Knowledge, Solving Problems, Answering Questions

Hiring /Search
Looking for more permanent employees and consultants
LinkedIn, Monster.com
Market Entry
Accessing first customers / early adopters without large market development
Smoke-screen web-sites, social media, kickstarter


Rewards
Different levels of rewards are promised to project funders, no dilution of equity, "all-or-nothing" and "keep-it-all" structures.

Kickstarter , indiegogo

Donation
More like a charitable contribution to support a person or cause.

Gofundme , Pave.com
Lending
Funders lend small amounts of money to companies , the loans may be collaterized .

Lendingclub , zopa.com, Kiva
Equity
Funders own a small number of shares. Regulatory issues abound. Owners suffer dilution, and may hinder later funding options.

Crowdcube , seedrs , startupvalley
Hybrid
Usually a combination of rewards and equity to match different stages of growth

Fundable.com

Loss of reputation if targets are not met

Promotion to a large audience/customers

Loss of IP protection of ideas

Receiving market feedback/beta testing

Fear of abuse under regulatory uncertainty

Accessing the wisdom of the crowd

Inability to raise further funds from existing donors/investors or institutional investors

Access to funds at the early stage of a company

Low valuation when selling shares

Retention of operating control

Heavy commitment to communication to a large crowd

Platform use provides guidance and reduces legal costs


-EBITDA is the earnings before interest expense, interest income, income taxes, depreciation and amortization. It measures the profitability of a company's operations without the impact of its debt, investments and long-term assets. It is the basic measurement of the day-to-day health of the company's operations.
- A Break-even analysis is the point at which a given output results in neither profit or loss.
-The formula: the price per unit (P) multiplied by the number of units sold (X) is equal to the fixed costs (F) plus the variable costs (V) multiplied by the number of units produced expressed as the following formula:
P( X) = F + V(X)
-A Forecast of Cash Flow is a month to month (or even weekly) projection of receipts and disbursements activity including: 1. Receipts from Sales. The detail from sales, the payment terms the company extends its customers, and the company's collection history 2. Other Receipts. Other receipts include bank loans, equity investments, tax refunds or any other inflows of cash 3 . Disbursements from Expenses. The detail from expenses and the payment terms 4. Other Disbursements. This includes capital equipment acquisitions, payment of debt, royalties, etc.
- The ability to lead an organization on a mission where everyone is involved everyday in moving forward toward clearly defined goals makes the difference between success and failure. * There are 10 leadership attributes that, above all others, should be practiced within companies