Concept: Subscription plan funds startup and converts to ownership
Small ventures (start up companies, musicians, film directors, etc.) would to sell an ownership “subscription.” On a monthly basis, subscribers are debited an established amount (as little as $20) which goes to the venture to use for monthly cash-flow. As few as 500 subscribers paying $20 a month would generate $10,000 in cash flow. If and when the company is acquired or goes public, the subscriber/owners would get a portion of the proceeds or stock apportioned based on the amount of money they’ve put in.
The challenge, of course, is for the venture owner (business person, musician, director) to market themselves to secure a suitable number of subscribers. This is the business idea: establish a middleman or brokerage-type company that would make the subscription process work. A broker would:
- Manage the subscription process
- Handle the back office operations (billing, collections, payouts, legal issues, insurance, etc.)
- Market concept to the general public
- Maintain credibility and security demanded by people who are giving you their money
There are a host of things that could prevent this working, like legal issues. But assuming those could be overcome, the service could help a lot of people trying to get a venture off the ground – anything from Joe’s donughts (Joe want’s to franchise), to the next Facebook.
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