[eekosmembers] Re: Money for eekos Gambia options
- From: "Don" <dyates@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx>
- To: <eekosmembers@xxxxxxxxxxxxx>
- Date: Fri, 2 Mar 2007 07:23:15 -0800
I certainly do not disagree with you. I would only think of looking at it if
you had some form of LLC that keeps the money folks out of running the
enterprise. In terms of loans, I think they need to be considered
obligations of the whole organization even though one person secured them.
That means that all decide whether to allow a person to take the loan or
not. Then the repayment of that loan must be in the budget and some amount
paid on it each year. This approach is the only one I can see that is
consistent with the democratic organization you are trying to build.
[Remember that I use the word "organization" to refer to just the human side
of the enterprise, not synonymous with "company", "firm", "enterprise" etc.
They include both the mechanics and the people. ]
By the way. Have I ever sent you a link to the eletters I wrote. I think if
everyone reads them they will understand better where I am coming from. The
also include some basic mechanics that you use in an organization [like
goals].
_____
From: eekosmembers-bounce@xxxxxxxxxxxxx
[mailto:eekosmembers-bounce@xxxxxxxxxxxxx] On Behalf Of Kevin Ison
Sent: Thursday, March 01, 2007 10:39 PM
To: eekosmembers@xxxxxxxxxxxxx
Subject: [eekosmembers] Re: Money for eekos Gambia options
Yes, surely selling equity in a company where all are equal shareholders
would be defeating the whole purpose of the company?
But that is not to discount the use of Angels or other organisations or
persons who will offer us financial support, just that I would be very
reluctant to release equity other than an equal share with the rest of us.
Sure, high interest rate on a loan (well it is a unsecured loan) or other
options, but I think taking equity more than our equal members share would
start to erode the democratic nature of the system.
Too often the financier of a company sets policy and direction. If we make
it clear that they get an equal, but no more, involvement for their money
(we are planning to pay it back anyway) then I think we may just attract
more interest than we think.
Surely when you think of it, money is nothing more than accumulated
resources, and we all are bringing resources and skills to eekos, so
bringing in money should gain no more influence than bringing skills.
In general I am more keen on building from strength and borrowing as little
amount as possible. This way, we build as a solid company.
It will also force us to look carefully at creating cash flow.
A small amount to seed money is needed and I think that we can get this from
our own resources.
I don't have any problem with personal loans as long as there is some sort
of share of responsibility according to members financial situation. If we
are committed to this company, then surely we must put financial responsibly
along with responsibility with tasks and other aspects of running eekos. If
you have nothing to lose if failure occurs, the you will not be as committed
to making the business work.
cheers,
Kev
Hi Don / members,
I think this is a valid suggestion. However, if a capitalist buys into a
cooperative company, is this not likely to compromise the democratic
structure? Or, are you able to exclude them from gaining undue control?
Thanks,
Jamie
Any method that requires personal loans of any form are, to me, absolutely
out! You do not have to add that to everything else on your mind. I think
the only realistic way is Angel money. For this, though, I would go for a
sum that you believe will get the whole business up and running. Angels
[personal investors] understand this approach. However, you do have to think
about an exit strategy for them to make money at some reasonable time. This
in a sense a loan but without any legal obligation unless there is a return.
A similar route would be venture capital. There is a great deal of interest
in the green movement over here. Problem with this is that they absolutely
want to see an exit strategy that will make them a bundle. This is a very
expensive route - I sometimes call them vulture capitalists.
Question is how to reach either group. This might seem a bit of a stretch,
but I would do whatever it takes [and it may not be too much] to get hold of
Al Gore. He is the center of the green world at the moment. I cannot think
that he has not thought a great deal about how people can fund projects. You
would need to show your various products or processes and how much they will
help the greening of our world.
Don
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