Cashflow: Difference between revisions

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    '''Cashflow''' is key to a [[self-funding]] system.
    '''Cashflow''' is key to the [[revenue model]], especially of a [[self-funding]] system that will require revenue to balance every expenditure, and will not rely on [[donation]] or heroic volunteers to bail it out of problems:


    To qualify as self-funding, a system must take in [[financial capital]] (not quite the same thing as [[money]]) before it must pay it out.  A [[nonprofit]] relies on donations and a [[line of credit]] based on the assumption that donations are coming, to meet its cashflow requirements usually.
    To qualify as self-funding, a system must take in [[financial capital]] (not quite the same thing as [[money]]) before it must pay it out.  A [[nonprofit]] relies on donations and a [[line of credit]] based on the assumption that donations are coming, to meet its cashflow requirements usually.
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    However, it is also allowed to sell things, hold property or receive royalties, and often does this for [[fundraising]] purposes.  Usually to maintain [[charitable status]] in most countries, it can't actually develop anything to sell directly, but it can accept things that are saleable, and do the selling.
    However, it is also allowed to sell things, hold property or receive royalties, and often does this for [[fundraising]] purposes.  Usually to maintain [[charitable status]] in most countries, it can't actually develop anything to sell directly, but it can accept things that are saleable, and do the selling.


    Ways [[Consumerium Governance Organization]] could handle cashflow are discussed at [[Consumerium:cashflow]].  Although some [[Consumerium Services]] like [[spot audit]] may generate cash through arrangements with other [[essential projects]] and [[governance organization]]s supervising these, it seems unlikely that a [[healthy buying infrastructure]] can generate cashflow on its own sufficient to support [[Consumerium maintenance]], and allaying all [[worst cases]] and unanticipated [[threats]].  For these reasons it might well be necessary to work to create a larger [[healthy signal infrastructure]] with others, and work closely with them on [[hardware requirements]] all can rely on.
    Ways [[Consumerium Governance Organization]] could handle cashflow are discussed at [[Consumerium:cashflow]].  Although some [[Consumerium Services]] like [[spot audit]] may generate cash through arrangements with other [[essential projects]] and [[governance organization]]s supervising these, it seems unlikely that a [[healthy buying infrastructure]] can generate cashflow on its own sufficient to support [[Consumerium maintenance]], and allaying all [[worst cases]] and unanticipated [[threats]].   
     
    For these reasons it might well be necessary to work to create a [[healthy signal infrastructure]] with others, and work closely with them on [[hardware requirements]] all can rely on.  That frees [[Consumerium developers]] to focus more directly on [[best cases]], and lets the [[CGO]] focus on [[visions]] and finding [[direct financial support]] from those only with [[common values]].

    Latest revision as of 21:50, 25 November 2003

    Cashflow is key to the revenue model, especially of a self-funding system that will require revenue to balance every expenditure, and will not rely on donation or heroic volunteers to bail it out of problems:

    To qualify as self-funding, a system must take in financial capital (not quite the same thing as money) before it must pay it out. A nonprofit relies on donations and a line of credit based on the assumption that donations are coming, to meet its cashflow requirements usually.

    However, it is also allowed to sell things, hold property or receive royalties, and often does this for fundraising purposes. Usually to maintain charitable status in most countries, it can't actually develop anything to sell directly, but it can accept things that are saleable, and do the selling.

    Ways Consumerium Governance Organization could handle cashflow are discussed at Consumerium:cashflow. Although some Consumerium Services like spot audit may generate cash through arrangements with other essential projects and governance organizations supervising these, it seems unlikely that a healthy buying infrastructure can generate cashflow on its own sufficient to support Consumerium maintenance, and allaying all worst cases and unanticipated threats.

    For these reasons it might well be necessary to work to create a healthy signal infrastructure with others, and work closely with them on hardware requirements all can rely on. That frees Consumerium developers to focus more directly on best cases, and lets the CGO focus on visions and finding direct financial support from those only with common values.