Half a croissant, on a plate, with a sign in front of it saying '50c'
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Quis custodiet the custard?

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Backward pricing

Imagine a business that didn't have an office, didn't have a warehouse and didn't have anything at all - yet. But has an extremely detailed business plan that says what they will do when an item in the business plan is purchased and if enough people purchase it, it spurns everything into action!
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Take a bakery business plan for example.

A bakery requires a bread oven, a slicing machine, a premises, a location and customers.

The bakery business plan is listed and needs £50,000. People come and see the loaf of bread listed in the business plan and see what they shall get when they buy it: a loaf of bread.

If a loaf of bread is £2 then 12500 people need to buy a unit of the business plan at £4 to receive a loaf of bread.

I calculated the £4 by dividing £50,000 by £2 (the price of a loaf of bread) + £2 fee for loaf of bread)

So if 12500 all commit to buying a loaf of bread for £4, they get a loaf of bread AND a bakery in their local area.

What do you think?

The idea is to completely derisk business formation. You buy a commitment to a product with a mass of other people which raises the capital to execute the next step of the business plan.

The backward priced business plans should be listed on an exchange and should be extremely detailed. Every business activity has a set of steps that shall be followed to fulfil the purchase price.

chronological, Apr 04 2023


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       Isn't this what Kickstarter etc. already does?
pocmloc, Apr 04 2023
  

       By saying it "spurns" everything into action, do you you mean a certain snobbery is also involved? That would appeal to many peeps.
Ander, Jun 16 2023
  


 

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