Double check my logic here.
How would crowd funding a completely new business from the ground up work using only the bitshares platform?
You'd pay an issuance fee for a new UIA. Create it, and determine the amount that's going to exist.
The value is initially zero. You hold, let's say, 100,000 of this new asset.
Then you create a business plan (a meticulously thought out business plan, covering every possible concern and aspect after consulting a lawyer), spread it around, and get people interested.
Then on launch day, put up a sell order for however many shares you want to sell, lets say, 100,000, and set a price. This is where I'm a bit iffy. If you want to use the proceeds to establish the business, then that might work against you if the people who buy the initial 100,000 sell before you do, right? Is it possible to lock them in the system so that yours is the only sell order? Or do you basically have to hold them, use a website to track who all donate, then distribute when you're ready for them to be traded?
Anyway, say you determine (and I'm pulling a number out of my ass here just for the example, in practice the number would be the exact amount necessary based on research into the expenses) that you need $200,000 to start the business and keep it running long enough to start turning profit. So you set the initial offering at 2 dollars per share. Sell them all, and agree to use... lets say 50% of the businesses future profits to buy back shares every month, at whatever price they may be selling for (presumably, nobody would want to sell unless for more than they purchased for), until they're all bought back. You would give detailed monthly updates on how the business is doing until they're all bought back.
I'm thinking about starting work on a brick and mortar business plan. Does the above sound like a viable way to go about it? Am I missing anything? Is this a terrible idea? What are you thoughts, community?
Topic: Crowdfunding a business? (Read 4795 times)
