Hello Alexander, Why the solution adds, not reduces people value I wholeheartedly agree that people need wages today rather than jam tomorrow - and this solution is not intended to undermine the mainstream paid job market. From the three pilots that we have carried out, I don't believe that it will either. The vast majority of individuals and businesses that we have spoken to have rightly said that they only work on a paid basis, however, a number of the more forward thinking ones have been open to the idea of selling their spare time on a part or fully deferred payment basis because our solution allows us to help them create both potential income and opportunities. Our web site states that it should be 'spare' time that is used and that is reinforced here - [https://www.piefinance.com/RegisterHumanResourceProvider.aspx#jobs] https://www.piefinance.com/RegisterHumanResourceProvider.aspx#jobs. In my own opinion, I think the thing that undermines the value of ordinary people's time and effort are: (1) At present, reduced demand in the marketplace. I have met lots of people who are forced into doing unpaid internships and pro bono work to try and create a demand for their services. Having secured orders for my own businesses and contract work for myself in the past. They are the victims of the downturn. If instead of the minimum wage or publicly funded placements (such as the Future Jobs Fund which are used as free labour), the government encouraged business start up and expansion with an INITIAL working basis using our web based infrastructure to collect revenues and distribute payments (to suppliers, the entrepreneurs and tax for themselves), then that really would unlock everyone's potential. (2) More generally, the concept of a "safe job". Many "ordinary people" who I know, including my own brother, work for a fraction of what they could charge because they are risk averse. This keeps them where they are and prevents them from exploring any opportunities that might allow them to improve their circumstances. I do believe that the employer who is likely to have taken lots of risks themselves to get their business started should keep the lions share of the value that the company produces, but that ordinary individuals should also be given the opportunity to better their circumstances - especially with the looming pensions black hole and most of us facing the prospect of working up until we're 7r years old. Now and even later when the economy has improved, our solution will hopefully give these individuals a stepping stone to not just working for an adequate wage, but also perhaps creating more value and taking a larger share of it than they are allocated in their employment. If it works, it would increase incomes backed up by real wealth creation in the form of new products and services - thereby not leading to inflation. Reducing the risk of business failure According to general figures quoted by the UK banks, 90 to 95% of new businesses fail within the first five years. According to the "Siding with Angels" report on the NESTA web site, 54% of investor ready, high growth ventures that attracted angel investment failed. To improve on the fact that value of spare time and resource drops to zero if their not used (thereby minimising losses anyway), the raison d'etre of our platform is risk reduction. One of the many ways in which our platform protects collaborative time and resource suppliers - as well as finance providers - is to guide the entrepreneur and potential stakeholders to guide them through a logical process of defining a detail plan to unlock all possible revenue streams - not just for interested parties to read - but to form the basis of collaborative due diligence (gap analysis and resolution) by the technical and commercial suppliers who are likely to have up to date knowledge to help them foresee problems. This plan is then used to constrain the management team to prevent the misuse of resources and capital with transparency enabled by online ERP system based actuals.v.plan reporting. Maximising returns when a business fails Our platform guides everyone to define a "reverse royalty structure" as part of the plan before anyone goes on to supply time, resource or finance. Under this structure, if the venture under performs against plan, depending on a number of factors including the degree of under performance, the reasons for it and the stage of the business, anyone - not just the creditors and investors - would be able to use the value created (such as a licence to the brand and IP, technical and commercial know how, loan of prototypes, copy of web sites) in the ways agreed to try and generate revenue - on payment of a royalty back to all of the stakeholders still owed money. An example is given below: Stage of business Level of under performance (%) Royalty to be paid to Likely beneficiaries (when work is undertaken) stakeholders owed money (%) (original business creditors and investors) by commercialing party --------------------------------------- --------------------------------------------- -------------------------------------------- -------------------------------------------------------------------------------------------------------------------------- 1. Unproven concept 100% (concept unfeasible) 5% (As little value has been created) Business planner, financial planner, market researcher, seed investor 2. Researched concept 25% (minor technical issues - 50% (As it's low risk, but still quite Prototype builders more resource required to fix) early stage) 3. Pre-break even trading 20% (low demand, competition) 90% (as the venture mostly works) All outstanding creditors and investors 4. Pre-break even trading 80% (very low demand, 10% (as the venture is very risky) All outstanding creditors and investors serious competition)
Until it has resulted in successes or failure, it's difficult to say whether the measures detailed above will work or fail, but when few seem to have the answers as to how we can ramp up the creation in the face of looming public sector cuts with a forecast 3000,000 job losses, a lack of finance idea-to-market finance and the end of the academic year resulting in even more out of work, this is a possible solution. If you have the time and inclination, I would welcome a critique of the above. Best regards Senake -----Original Message----- From: "Alexander Harrowell" <[email protected]> Sent: Wednesday, June 16, 2010 11:27am To: "mySociety public, general purpose discussion list" <[email protected]> Subject: Re: [mySociety:public] Views wanted - on our sustainable solution enterprise and employment creation solution _______________________________________________ Mailing list [email protected] Archive, settings, or unsubscribe: https://secure.mysociety.org/admin/lists/mailman/listinfo/developers-publicIt's a horrible idea, it hugely undervalues ordinary people's time and effort, it takes absolutely no account of the fact the people involved need not promises of jam tomorrow but wages, now, to pay things like rent, and it reinforces the unpleasant tendency of jobs in quite a lot of sectors to be monopolised by rich kids who can live off the Bank of Mum & Dad while working for free in order to make a start. Also, given that some huge percentage of startups crash and burn, what happens to my wages? It's an awful idea and it's advertising on the list.
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