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Dum question from someone who has no business experience but trying to start a company. If my goal is to build something useful for my customers, is there any

Dum question from someone who has no business experience but trying to start a company. If my goal is to build something useful for my customers, is there any harm in converting the company into a co-op or something when I get bored? I have a lot of money (not bragging, because it’s not like millions and millions, but I’m fine) so I’m not motivated by that. Rather I want to solve problems and create an environment where my team can prosper professionally and we are all on the same mission. I’ve worked at companies before where the culture was amazing and it was actually a joy to work. And it’s not like we were some hippie company - I’m talking unicorn status and later an IPO. I want to emulate that sort of environment where people were legitimately happy to be there. Instead of selling to some PE firm to come ruin things, has anyone converted their company into a co-op or is there something better where the remaining employees can be empowered to keep the engine running and steer the ship to new shores?

spiffytech 4y ago
Ghost CMS set the company up as a nonprofit: > We set Ghost up as non-profit foundation so that it would always be true to its users, rather than shareholders or investors. Our legal constitution ensures that the company can never be bought or sold, and one hundred percent of our revenue is reinvested into the product and the community. https://ghost.org/about/ https://ghost.org/about/
- moomoo11 4y ago
  Awesome! Thanks
robocat 4y ago
There are reasons why successful co-ops are uncommon and that most successful organisations are top-down structures. A good way to cheaply and deeply learn the reasons for yourself, would be to join some co-op’s (or perhaps charities) in your area. A little experience within a successful co-op and within at least one unsuccessful co-op would go a long way. Good luck!
- leaflets2 4y ago
  Please tell me more? I've a bit been wondering if a non profit could be better than a Limited Liability Company for some future projects And I work 60h/week already, cannot join two coops to learn more :-( I suppose one problem could be that they'd try to make decisions via consensus or votes -- but there might be one person who is brighter and/or knows more than the others, and leaving most decisions to that one can be an improvement? Imagine the Linux kernel starting to make decisions via consensus or votes, rather than a BDFL? (I'm sbd else)
  - robocat 4y ago
    I have little direct experience, but what I do have all points towards failures of consensus. Look at the most recent company you worked for, and from your colleagues think of: one idiot engineer, one idiot manager, and one idiot admin. Now imagine that they each feel they have equal rights as anyone to share their “input” into that business, and imagine trying to find consensus with you. Now multiply that problem by 10, because it isn’t just idiots that want to have their say, and most people have valid input that needs to be ignored because most businesses need a leader to provide focused power on a few plays. I know of successful co-ops, but those seem to usually have a corporate structure and members have limited power, and I don’t know their internals. Do you feel you have the skills to manage a co-op? Superficially you appear to be somewhat idealistic and innocent of the difficulty: although I think most traditional startup founders have and need those traits! Advice is cheap and experience is expensive: go with whatever works for you.
    - leaflets2 4y ago
      I'm leaning towards an LLC (and not a non profit), even more now. The engineer, admin and manager example sounds frustrating! I can run a company (it seems) but a co-op, then I'm afraid one would need much greater charisma and persuasion skills, and also enjoy that? Otherwise the co-op would be unstable? With equal voting power, then any member with bad ideas and persuasion skills would be an existential threat? But in a company, s/he could just be fired? (Or contract not renewed)
    - 4y ago

spiffytech 4y ago

Ghost CMS set the company up as a nonprofit: > We set Ghost up as non-profit foundation so that it would always be true to its users, rather than shareholders or investors. Our legal constitution ensures that the company can never be bought or sold, and one hundred percent of our revenue is reinvested into the product and the community. https://ghost.org/about/ https://ghost.org/about/

moomoo11 4y ago
Awesome! Thanks

robocat 4y ago

There are reasons why successful co-ops are uncommon and that most successful organisations are top-down structures. A good way to cheaply and deeply learn the reasons for yourself, would be to join some co-op’s (or perhaps charities) in your area. A little experience within a successful co-op and within at least one unsuccessful co-op would go a long way. Good luck!

leaflets2 4y ago
Please tell me more? I've a bit been wondering if a non profit could be better than a Limited Liability Company for some future projects And I work 60h/week already, cannot join two coops to learn more :-( I suppose one problem could be that they'd try to make decisions via consensus or votes -- but there might be one person who is brighter and/or knows more than the others, and leaving most decisions to that one can be an improvement? Imagine the Linux kernel starting to make decisions via consensus or votes, rather than a BDFL? (I'm sbd else)
- robocat 4y ago
  I have little direct experience, but what I do have all points towards failures of consensus. Look at the most recent company you worked for, and from your colleagues think of: one idiot engineer, one idiot manager, and one idiot admin. Now imagine that they each feel they have equal rights as anyone to share their “input” into that business, and imagine trying to find consensus with you. Now multiply that problem by 10, because it isn’t just idiots that want to have their say, and most people have valid input that needs to be ignored because most businesses need a leader to provide focused power on a few plays. I know of successful co-ops, but those seem to usually have a corporate structure and members have limited power, and I don’t know their internals. Do you feel you have the skills to manage a co-op? Superficially you appear to be somewhat idealistic and innocent of the difficulty: although I think most traditional startup founders have and need those traits! Advice is cheap and experience is expensive: go with whatever works for you.
  - leaflets2 4y ago
    I'm leaning towards an LLC (and not a non profit), even more now. The engineer, admin and manager example sounds frustrating! I can run a company (it seems) but a co-op, then I'm afraid one would need much greater charisma and persuasion skills, and also enjoy that? Otherwise the co-op would be unstable? With equal voting power, then any member with bad ideas and persuasion skills would be an existential threat? But in a company, s/he could just be fired? (Or contract not renewed)
  - 4y ago