Skip to main content

Read the first part in this series to see the intro to crowdfunding and cooperative workplaces.

http://www.dailykos.com/...

So here is a more concrete example of how we could do this in the real world.
Imagine 100 Daily kos readers borrow $30,000 from lending club. That 30k is borrowed at interest, 10 percent sounds about right. Other daily kos readers fund the loans. Here is the beauty of crowdfudning, no one needs to loan more than $25 dollars, and the note that you receive bears interest. If Kos readers and other regular peer lending investors fund the loans, they will all fund, and they will fund fast.

Now, all of a sudden, we have three million dollars to work with, and that three million dollars can be raised in one week. It's important to remember, this isn't charity, the money people loan will be paid back- with interest, if the business succeeds that is.

So- what to do with that money? first we need to gain community support for a project. Suppose the neighborhood wants a coffee shop, or an co-op food store. well, the people in that community must be willing to shop at that establishment, better yet, they will want to buy into the co-op. Workers will also be able to buyin to the co-op as well. The money that the business earns in profits and in co-op buyins will go towards paying back the original loan.

Profits aren't guaranteed, neither is the business, the only way it is going to succeed is if the local community supports the establishment, and if the business provides something that the local citizens need in their daily lives.

Now here is where it gets interesting, if 1000 member decide to borrow 30k, that is 30million dollars raised. What kind of business co-op could we start with 30 million?

Before the internet, raising cash and awareness were tough. Now, with crowdfudning raising million is the easy part. Getting the community to support a local business with sound ethics might be the harder part.

Always a naysayer in the crowd.
Here is a crystal clear example.

I have lived in neighborhoods in NYC that desperately needed a coffee shop that was kid friendly. Or they needed an organic grocer, or a daycare, or a butcher.

If you can mobilize the locals, and explain that you are going to open a co-op that hires people at livable wages, and that this will be community owned and operated, then you can get it done.

Borrowing a ton of money with the power of crowdfunding is easy. Each person need only invest in 25 dollar increments. Getting people to frequent the business is a different story, and running a profitable business, that is the hard part. If the neighborhood will buy into the co-op, and spend their money there, then it can work.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  I don't know if you're spamming or trolling but... (1+ / 0-)
    Recommended by:
    annan

    ...sure, this is business as usual bu now the scope of people is wider and can be less wealthy. The simple so-called "sub prime loan" that fueled It's A Wonderful Life and the kinds of usury-free community support advised in the Bible has always been the best at lifting communities (rather than real estate) because the investors desire more than merely personal financial gain. Local investors have skin in the game, pick well, and add more than just money to make success. Add in the communication and oversight opportunities of crowdsourcing without diluting the advantages of vested local interest and this is an old idea that deserves new attention.

    For an example of what small investors can accomplish, look at the grand cathedrals and churches throughout the nation built with the $5 donations of low and middle income Americans scrimping from their pay or Social Security checks ever Sunday and the charities they fund.

    •  Always a naysayer in the crowd. (0+ / 0-)

      Here is a crystal clear example.

      I have lived in neighborhoods in NYC that desperately needed a coffee shop that was kid friendly. Or they needed an organic grocer, or a daycare, or a butcher.

      If you can mobilize the locals, and explain that you are going to open a co-op that hires people at livable wages, and that this will be community owned and operated, then you can get it done.

      Borrowing a ton of money with the power of crowdfunding is easy. Each person need only invest in 25 dollar increments. Getting people to frequent the business is a different story, and running a profitable business, that is the hard part. If the neighborhood will buy into the co-op, and spend their money there, then it can work.

      •  Naysayer? I'm in complete agreement with you! (0+ / 0-)

        I suppose the title of my comment was unnecessarily negative. I thought you might have been selling a service. But yes, we're in total agreement.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site