Thursday, July 22, 2010

Model for Entrepreneurial Success

This blog is the first iteration of what has now become www.OneCommunityGlobal.org, please visit that site for all the most current details on this project. 

One Community is a place of opportunity and entrepreneurial expression focused on abundance in all forms: financial, personal, and spiritual as a foundation of its purpose. As such, the distribution of funds is structured to provide maximum incentive and reward for individual effort while still contributing to the investors and environment as a whole that makes One Community what it is.


"Win-Win-Win" is the philosophy of the community.




Business costs are low at One Community, additional manpower is readily available, and business success is increased because of the 3 key principles of success that One Community is built on: fixed overhead (self-sustainability), efficiency (time availability), and talent diversity. Because the community as a whole benefits from the success of businesses within the community, the desire to help new entrepreneurs is much higher. Incentives for reduced time investment (reduced work week hours) also help to motivate skilled people to live even more of the life they want to live by sharing their gifts and helping others to do the same.

We will compare a business built in the current paradigm with one built in One Community in a moment, but first distribution of gross revenues are as follows:

a
75% to entrepreneur(s)

15% to property owner(s)

10% to community



Entrepreneurial Funds:
Entrepreneur funds are monies paid to the business owner and are divided 55% paid directly to the entrepreneur and 20% to a 'slush fund' established to ensure longevity of the business. Entrepreneur(s) divide the 55% amongst themselves as they feel fit based on whatever their current business model is. The 20% goes into a separate account that is actually still the entrepreneurs' but is governed by the community as a whole; keeping a communal creative input to all businesses within the community and building a buffer or 'emergency fund' to guarantee the business' survival. Funds drawn from this account and used for anything related to the business (materials, paying additional help, expansion, etc.) or paid directly to the entrepreneurs if it exceeds business security needs.

Property Owner Funds:
Property owner funds are the 15% of gross revenues paid to the property owner in exchange for the provision of the property in which One Community is located. All One Community accounting practices are open and accessible to the Property Owner(s) for review. Property Owner funds are paid on the 15th of the month based on the prior month's profits.

Community Funds: 
Community funds are 10% of the gross funds paid to the community in gratitude for the environment it provides to grow and thrive. These funds are invested based on consensus for community improvements, investment in individuals, investment in new businesses, other community needs, etc.

The Goal is to Avoid the Uphill Struggle of the Traditional Paradigm and Help Each Other

The most successful corporations and business conglomerations of today understand this concept and apply it effectively, combining like industries and seeking to acquire rather than outsource synergistic aspects of their businesses.  Indeed, the practice is so effective that anti-trust laws are necessary to stem the practice and keep businesses using this approach from eliminating the competition because working against this model is near impossible.

Everyone could benefit from applying this approach if they only knew how. Smaller business owners and startups, however, rarely have the resources and reach to do so. In today's world there are many great ideas but the capital and cohesion necessary to bring a successful team together and bring an idea to market can be a significant roadblock.

One Community brings the pieces of successful business building together through community and an on-going talent outreach program. By maintaining and marketing an environment that people want to be a part of we open up the space for those pieces of the puzzle that fit best and contribute most to the whole.

Building a business with us looks like this: Sara is a massage therapist and she hasn't even considered creating a business. Jae sees a passion and gift worth sharing with the world and talks to Sara, Paul (our video guy), and Dustin (our internet guy) about creating a series of user friendly videos to be marketed on-line and to those appreciating Sara's massages here in the community. The details of profit sharing are discussed and a 5 video series is sketched out to be shared with the community. 

At the next consensus meeting the business model is presented for input, evolution and discussion of who else can help with the project and whether or not hours invested should be inside or outside of community contribution.  Jerry adds that he can do graphic design if needed and Kim offers accounting help.

Once the idea is agreed to be a viable business model and consensus approves the business, availability of contribution time is assessed and the volunteers are properly identified. The community consensus then determines what percentage of hours invested in the project, by everyone involved, is inside and outsides of community contribution hours. Community duties are then shuffled to support the success of the project and the business is launched.

Updates are reported at each community gathering and the project and products are created to the benefit of everyone. If Sara or anyone chooses to leave the community, the business model and revenue distribution continues as established unless someone chooses to purchase the business model and community consensus agrees.