Most entrepreneurs take for granted the entrepreneurial systems and strategies that have been passed on to them for centuries with an average close-up rate of 80% in five years of operation.
80% of entrepreneurs close-up and end up going back to work for the 20% open-up who than tell others how to follow systems and strategies that are extremely difficult to execute and will result in 80% close-up, creating a vicious circle of capital/enterprise/power concentration.
The common strategy is to accept status quo rules, laser focus on one product or service (commodity or incremental innovation, never a radical innovation), risk all necessary capital on a 20% gamble that may pay off in five years. 80% close-up and move to something else if they still have capital or go work for someone else.
Here are 10 start-up strategies/systems for 100% sustainable always open-up enterprises, allowing them to always operate in low to high profits, averaging 20% profit rate, creating a virtuous circle of capital/enterprise/power deconcentration and democratization:
1)Global 24 hour internet operations with 3-4-6 hour shifts: 1 to 8 founding entrepreneurs can work part time on a new business while working part time on an established business as employees, independent contractors or partners, earning income to pay for the fixed internet-based ultra low cost of the business.
2)Financial revenues to cover fixed costs: at least 50% of cash capital must be invested in high yield bonds/stocks to generate monthly interest/dividend revenue to cover fixed costs and monthly dividends for shareholders, including all worker-investors that must receive functional shares for intellectual capital. The enterprise and individual worker financial portfolio can be used as collateral to temporarily day trade 1 to 2 hours on the opening and close of markets, while there is high volatility because of lack of distribution of profits as monthly dividends and liquidity at book value.
3)Progressive and conservative products/services: enterprise need at least two products and/or services to create a Cash Cow (conservative, commodity or mature product/service with an established market) and a Cash Bull (progressive, differentiated or innovative product/service with a new market). Cash Cow will produce in the short term cash flow to help pay for fixed costs shared with Cash Bull that can generate higher revenues/profits in the long term.
4)Institutional Marketing: everyone is a potential buyer, supplier, investor, worker and citizen with capacity to increase or decrease enterprise progress. Marketing strategy must maximize exposure to all opportunities within the organization, treating all individuals equally as money making opportunities for themselves and for the enterprise.
5)Zero labor: an all supplier-investor and/or worker-investor system with no labor fixed costs (wages/benefits/taxes), receiving functional shares for their intellectual capital, earning monthly dividends from 100% distribution of profits, with escrow investment/reinvestment plans for asset acquisition and distinctive additional share accumulation and portfolio diversification to provide financial independence and motivated work choice freedom.
6)Zero tax: minimize or eliminate all taxes choosing temporary or permanent tax free economic zones or programs. Provide sustainable solutions for any social or environmental problem. Actively support governments to only coordinate/catalyze free enterprise to provide sustainable solutions for any problems, with tax/fine only for irrational anti-social, short-sited behavior, instead of imposing taxation barriers of entry and inefficient regulatory cost burden on all economic agents.
7)Zero law: minimize or eliminate all regulations choosing temporary or permanent regulation free zones or programs with no artificial bureaucratic barrier of entry. Always operate at the highest technical level and never cause damage to others. Actively support states to offer technical guidelines and only prosecute the agents that cause damage instead of imposing barriers of entry and inefficient regulatory cost burden on all economic agents.
8)Join Global Incubator Universities ( www.unig.org): Art, Entrepreneurship and Innovation project/enterprise development infra-structure, such as workshops, office/production/research space, theory knowledge base/certification and other fixed cost sharing/reducing systems.
9)Join Direct Global Exchange (www.globolsa.com ): sell/buy shares/products/services directly to all active investors/buyers/suppliers/workers, cutting costly middlemen, with investor direct vote over key enterprise decisions, investment/reinvestment escrow plan with clear disclosure/verification of authorized asset acquisitions, all worker-investors, with no fixed cost wages/benefits/taxes and labor/capital conflict of interest, receiving income from monthly dividends from mandatory 100% profit distribution, book value liquidity from enterprise and reserve counter-cycle market maker, with monetary system/expansion based on production capacity expansion tied to share subscription.
10)Join Global Ocean Aerospace Federation and Global Direct Judicial System (www.globocean.org - www.jusistem.com ): no tax/law/labor federation with no unproductive/inefficient fixed costs or barriers of entry, protection against damage, damage premeditation and damage danger, in economic international waters, air space, outer space, land (Antarctic) and current nations special zones (water, air or land) that eliminate tax/law/labor. Entrepreneurs must never take economic/political behavior and institutions as given but actively participate in developing them. Passive/negative behavior sustains inefficient institutions and behaviors. Active/positive behavior creates efficient institutions and behaviors that support productive, profitable and sustainable enterprise development.
START-UP STRATEGIES AND SYSTEMS