RandyF's Journal: Business Bootstrap

IDEA - Non-profit Business Association

Purpose - To establish, through monthly dues, a base of capital for investment into new ventures, improving the economy, advancing employment, etc...

Discussion: If a group of 100,000 joes pool their money, via small monthly dues, about $1,000,000 per month will be available to invest into members' ideas. The association will be non-profit, using only 1% of the fees for overhead and salaries.

Basic Rules

1. The association is strictly non-profit and the salaries and expenses will be limited to 1% of the monthly income.
2. Membership is $10.00 per month.
3. Minimum membership level before activation is 100,000 members.
4. Until activation, 99% of all funds go into escrow. The remaining 1% is for salaries and expenses.
5. If activation is not reached within two years, all dues are refunded at a rate of $9.00 per month.
6. If dues are reimbursed, any remaining capital, after expenses, will be donated to charity.
7. Investments will be available to members only.
8. Maximum investment per business plan will be $1 million dollars.
9. The association will retain a 20% stake in the company.
10. Stock buyback will not kick in until 3 positive dividend cycles have completed.
11. Stock buyback will be at a 3 to 1 ratio. (i.e. $1 million investment is paid off with $3 million plus 3 rounds of dividends.)
12. All dividend payments and stock buybacks go directly into the investment pool.
13. Business plans will be submitted by members and made open for discussion and advice.
14. Members may not âoeborrowâ from other members' ideas without permission.
15. Ideas have first-claim status on a first filed, first served basis.
16. Members agree to a binding static NDA for all posted ideas.
17. Member ideas that are preexisting but not first-claim (to be determined by a claim committee) have the right to pursue the idea outside of the association.
18. Business plans will be voted on by members and the highest-voted plan will be funded.
19. As finances increase, voting rounds will increase in frequency.
20. Once the investment pool is large enough, members may vote on adding professional services or larger individual investment caps
21. Member forums and talent pools will be built to improve the employment rate for members not yet funded.
22. No adult-oriented or illegal plan will be allowed.

Post your comments below!

Startup

[turg]

How long do you expect it to take to get to 100,000 members? Are you going to have only 1% spent on admin right from the start? How are you going to get the members without spending a chunk of money first?

Can Canadians participate?

Do I understand that all 100,000 members will be voting on the ideas? Why not an (elected?) panel of specialists? Isn't the evaluation of the ideas something that requires more time than individual members are able to put into it? Also, as I understand it, those who usually make s

Re:Startup

[RandyF]

How long do you expect it to take to get to 100,000 members?

I don't have any idea. First, I've got to get a feel for the interest and check on getting a non-profit status for such a thing.

Are you going to have only 1% spent on admin right from the start?

Yes. However painful that may be. I'm working on a startup company right now and, if I can get it off the ground, I'll donate some space for the web site.

How are you going to get the members without spending a chunk of money first?

Word of mouth