Collaborative Startup Development Scheme Based on a Profit-Sharing Model
You are committing to
#financial sustainability#work equity#partnership and transparency#talent opportunity#a team without borders#philanthropy
Profit-Share for each Contribution Made
start with 0 (zero) capital and make your startup's value grow with each contributor's input
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 startup will grow with each contribution made, quantified by a fixed amount, and allocated to the department or team it belongs to. Thus, the startup's progress can be evaluated easily and transparently at any time.
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 “Profit-Share for each Contribution Made”. A 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 profit in an equitable and transparent way with all contributors, based on everyone's added value.
◾ 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 a percentage of the business value.
◾ 33% for the PAST, Founding Contributors (all contributions made before Break-even)
◾ 33% for the PRESENT, Startup Collective (founders + employees)
◾ 34% 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.
#Partnership and transparency
◾ A single set of rules that applies to everyone in the same way.
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
What’s in it for me as Contributor?
◾ Before breakeven: The values of your task based contributions are see like investments. They will reflect your profit-share.
◾ After breakeven: Your contribution is paid according to your profit-shares.
More money spilled, more gain for everyone
What’s in it for my community?
Each Contributor will choose a Nonprofit or a Social Cause where your startup will make a sponsorship, corresponding to his profit-share and official engagement.
Value of the sponsorship = directly proportional to the company profits and with the Contributor's added value
Discover the benefits as a business!
1. Cost reduction!
A single contract applicable to everyone will significantly reduce operating costs in the early years of the startup.
2. Transparency and sinergy!
Through the management of contributions by departments, everyone will understand the value of their input and the estimated budget.
3. Profit-Driven for everyone!
Guiding growth and building a contributor community by prioritizing profit over exit from day one.
Profit appropriation
The primary goal of a business is undoubtedly to generate profit.
5-Star Planet embarked on defining enterprises with two major challenges in mind:
◾ firstly, to distribute the profit in an equitable and sustainable manner to everyone who contributed to its realization;
◾ and secondly, to allocate a percentage of the profit to non-profit organizations, chosen by each contributor.
We focus on startups, as they are the future companies and corporations. The way they grow is crucial and will define the trajectory of the enterprise even in its mature phase.
It is also essential for an enterprise to establish through a contractual commitment the distinction between the founding members and the recovery of the investment, that is, the PAST, versus what the company can offer in the PRESENT and its contribution to the community it is part of, namely the FUTURE.
Therefore, we are considering a joint commitment of all business participants in these directions.
33% - To Founding Contributors Collective (before Break-even)
33% - To Startup Collective (founders + employees)
34% - To the preferred NGOs of each individual
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.
Documents
Get for free, your Legal and Financial guiding templates, for your startup entire lifetime:
− One unique universal excel for your contribution management and profit-share rules.
− One size fits all transparent contract for the legal administration of all contributors, including founders, investors, mentors, programmers, testers, or any other individuals involved in the project.
Task management
An excel file with pre-filled formulas to help you manage your Contributor's participations and review how the profit-share is calculated
Sheet 1. Add your main startup commitment
◾ the percentage for the Founding Contributors Collective
◾ the percentage for the Startup Collective
◾ the percentage for the Community and the Planet
Sheet 2. Add the percentages for all your startup departments
Sheet 3. Start adding new lines when tasks are completed
Sheet 4. A list of the profit-share for all contributors, along with the corresponding percentages for the nonprofits earnings
If you provide us with your feedback and consent to store your email address to keep you updated on the latest model updates, we will, in turn, grant you access to the
This Excel template is offered to you for free by the courtesy of Sebastian Popescu Financial Advisor and Auditor.
Furthermore, we are developing aspects related to the revenue distribution for monetized startups, taking into consideration factors such as the break-even point, return on investments (contributions) and benefit plans. We will notify you when it becomes available for download.
Team agreement
A Team Agreement for your Startup and for all the Contributors.
The Team Agreement is provided only upon request, to the startups that wish to certify themselves and thus implement the 5-Star Planet model in their company's organization.
This legal template will be generously provided to your startup for free.
Terms of use
You can use the excel file calculation model for free. However, if you want to mention 5-star-planet.org or groupntravel.com as your startup business model, you must declare at least 10% startup commitment for the planet and community.
Glossary of Terms in the Context of "5-Star Planet"
Compatible Startup = An idea or a project that aims for profit and profit-sharing and requires a collaborative effort.
Contributors = All participants who have contributed to the development of the startup and the achievement of profit.
Profit-Share = In this context, it refers to a profit-share from the profit generated by the startup, as a joint venture.
Tasks and Contributions = Developing a pre-agreed task assigned to a contributor, with a fixed value reflected in a profit-share.
Profit-Share for each Contribution Made = The model does not involve the transfer of shares or social parts; rather, it is a firm contract that ties the future revenues of the startup to the contributors. Each contribution has a fixed value and is accounted for as a percentage share of the profit of a department within the startup.
Break-even = The moment when the startup can cover all its monthly billed costs or salaries from its own revenues.
Recovery of Invested Effort = The moment when the founding contributors manage to recover their initial efforts from the startup's revenues, by earning only from their profit-share.
Founding Contributor = An individual who offers time, expertise, or covers certain costs until reaching the break-even point, in exchange for profit-shares.
Startup Collective = Sum of all founding contributions and employees tasks reflected in a profit-share
Team Agreement = A joint venture contract between the startup and each contributor individually, adhering to the same set of general rules and commitments, applicable to all contributors of the startup as well as the revenue distribution of the startup.
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
⭐⭐⭐⭐⭐
Your commitment 5-star-planet.org