Comment by moomoo11
4 months ago
Most people seem to want to do these models because of “compassion” and whatever else.
Why not just not be greedy af?
Is it really that hard to not raise VC, bootstrap, pay a fair salary, and then give bonuses?
You’d probably get a lot more done as the benevolent dictator (you’re the CEO) and ensure that while you run the business you’re doing something “nice”.
Even if you take VC money you really aren’t fucking anyone over. People join your company voluntarily. You take the biggest risk as the founder early on. Employees stand to make 1x to 50x on their options depending on when they joined and if you’re successful.
Even if you’re not, at least you paid them and it was all voluntary.
Let me know if I’ve totally missed the point. From my pov all this co op stuff is just noise and only works for something like a consultancy.
Your company's product will never be the best version of itself if your only business goal is to lead a VC backed mindless race to an IPO. Your company will almost always have to dilute it's value proposition to make more money to satisfy greater returns for shareholders.
If your only goal as a founder is to eventually sell out and make yourself a billionaire, this is fine. If you want to build something of long lasting quality/consistency, then exploring other business models isn't just noise.
When you're free of outside influence you're enabled to perfect your business offerings, or at least be consistent in what you offer, without worrying about greater and greater shareholder returns.
It's no coincidence that Craigslist looks the same as it did 20 years ago, Arizona Ice Tea is still 99 cents, and Chicfila has the best fast food customer service.