Your bootstrapping equity model
You are committing to
#financial sustainability#work equity#transparency#talent opportunity#a team without borders#philanthropy
Equity per task done
start with 0 (zero) capital and make your bootstrapped startup value grow with every task done.
initiated by www.groupntravel.com
5-Star Planet model is a guide.
Please consult a legal adviser before setting up your legal company in your country.
Change of perspective
From Classic Model: cutting and re-cutting a 100% equity pie, made out of shareholders who are investing capital,
To "5-Star Planet" Model: we commence with zero capital, and the value of the contribution will escalate with the completion of each task, quantified by a predetermined sum, and subsequently assigned to the relevant department or team. In this manner, the tally of current shares expands, facilitating a straightforward and transparent assessment of the startup's valuation.
It's a functional Joint Venture between Contributors. Because one of the biggest challenges for a startup is having a round table of professional people aligned to responsibilities.
You can also look at this model as a form of normalization and decentralization of the shares of a private company. In IT, "normalization" is the process by which a relational table, composed of a set of attributes, is decomposed into two or more tables, which will form the database. In our case, we will reassemble the startup and investors' table into new tables where contributions are pooled, based on departments, responsibilities, teams, or even other projects.
The Vision
Let's simplify the economy! We do it with a responsible contract that guides startups throughout their journey, for their entire life, and for the planet.
#Talent opportunity
◾ Transform anyone with talent and professional skills into an investor via “Equity for Task done”. A founding contributor is like a “know-how” investor, who puts on the table his time and his skills, valued as invested money.
#Work equity
◾ To share the revenues in an equitable and transparent distribution with the working team, each month, based on worked hours.
◾ Benefit plan for each task done.
#A team without borders
◾ Joint Venture between Team members, no matter their location.
#Financial sustainability
◾ Future profit does not belong only to shareholders, so we are limiting the shareholders to 30% of the business value.
◾ 30% for the PAST, Shareholders = Founding Contributors
◾ 30% for the PRESENT, Monthly Working Team
◾ 30% for the FUTURE, Nonprofits
#Philanthropy
◾ The model is sharing the profit with the nonprofits. Embed into the business DNA the rule of sharing the profit with the nonprofits and social causes, chosen by each individual contributor.
◾ Each contributor selects a Nonprofit as beneficiary for a percentage of their contribution from the total work provided.
#Transparency
◾ One set of rules that apply to all.
Switch to Contributors
Build your team around your company culture
By emphasizing the company's mission and adopting a collaborative approach
◾ with ambitious persons who want to add their know-how and become investors
◾ with people who want to be fairly and transparently rewarded for the amount of work done
◾ with all those who want to have a direct impact on the social causes they support
Two types of contributions
1. Unlimited
◾ Agreement based on the hours/week and tasks to do
◾ Periodically re-evaluated
◾ Equity proofs signed off when tasks are completed
2. Limited
◾ Agreement just for a task or costs estimation
◾ Equity proof is signed off when task is completed
Equity per task done
How to calculate:
1. Unlimited agreement (example)
◾ Contributor assigned with 12h/week to one or multiple departments/teams
◾ 12 hours per week = 360€ per week, invested and distributed across the respective departments (assuming the agreement with that Contributor is, for example, 1 hour = 30€ by department)
2. Limited agreement (example)
◾ Task needed on a specific department. Let's suppose the task is estimated at 6000€.
◾ 6000€ will be considered as an investment in that department for the Contributor
What’s in it for me as Contributor?
◾ Before breakeven: Your contribution is saved as 30€ shares. This will give you later access to your share from the future revenues spilled in the Founding Contributors Pool.
◾ Breakeven: when the monthly revenues for the Working Team exceeds the threshold of 30€/share.
◾ After breakeven: Your contribution is paid with the revenues generated within the Contributors Pool.
More money spilled, more gain for everyone
What’s in it for my community?
Each month each Contributor will choose a Nonprofit or a Social Cause where your startup will make a sponsorship, corresponding to the percentage of his Contribution for that month.
Value of the sponsorship = directly proportional to the company profits and with the Contributor's value
Discover the benefits as a business!
1. Cost reduction! A single contract with all contributors and administrative expenses significantly decrease! No employees, no headaches with complicated contracts.
2. Complete transparency! Simple and efficient! With task management, everyone will understand the value of contributions in each department or team.
3. Instant commitment! The plan that provides direction and creates a strong community from the beginning. Let's build the future together as a successful startup!
Profit appropriation
30% - Founding Contributors
30% - Working Team by Department
30% - Contributors favorite Nonprofits
10% - Working Capital
These percentages embody the commitment of GROUPnTRAVEL startup and are showcased for illustrative purposes. Every startup has the flexibility to define its own commitments, based on the industry it operates in and its business plan.
Thanks
Thank you, S.C. Grupul de Presă și Editură Continent SRL, for the support provided in launching this project!
Frequently Asked Questions (FAQ)
What does 5-Star Planet actually represent?
Answer: 5-Star Planet is a firm contract that the established startup signs with all its Contributors. If you have a startup and are considering such commitment, please contact us, and together we will discuss the 5-Star Planet certification process for your company.
What role does this contract play?
Answer: This contract guarantees the commitment of the startup and the adherence to principles of revenue distribution, costs, profits, and contracts between the company and all its contributors.
Let's build a 5–star hotel planet for all living things
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Your commitment 5-star-planet.org