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 | 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]]. | |||