This is awesome, but 7:1 ratio is hilariously unacceptable under any coop model, especially in 2024. If you're including expenses and existing ownership of property then maybe? Maybe the landlord is investing free rent and contributing large amounts of venture capital for that. But in the full swing no one should be taking home, in pure profit, more than 2-4x what everyone else is. Coming from someone who has lived and worked around the world in small communes, small businesses, and mega corporations. The entire point of a coop business structure is to ensure no one is eating everyone else's hard work in getting things going and maintaining that momentum, while every single person is busting their ass getting it all moving smoothly. No couching the sweat and taking home 7x. That's the primary reason these business plans don't work.
With very specialized work that 1/2,1/4 ratio isnt going to scale. You simply just wouldn't be able to charge enough to attract the people in a specialized space. I think 7:1 is the upper bound though. Neuro-surgeon with private practice getting paid 1 mill a year, the front desk is getting paid $250k (1/4th). You could pull it off for a small scale but you couldn't bill enough to attract more surgeons. You could pull it off at 1/7th ($140k for front desk) though and go after the high end. The main point is the current 250X to 1 upper bound is a problem.
@@VulkCoop Thanks for the response! I completely missed the obvious variable with specialized/skilled work, and I know that pain personally in these situations as a teammate, offering up both highly-valuable work and unskilled labor at minimum wage or even pro bono. Then again, those situations were strictly limited to getting operations moving in the beginning, with a personal cutoff deadline for expecting a return or just leaving, I consider it an investment, and everyone helping to get things off the ground with work are investors, not just the VC or whomever is actually laying down funds. Just in general terms, outside of co-ops, we all know that startups have appx 1/10 success rate, so after a few attempts, it does get tiring, especially in cases where a lot of the initial investment went towards liquid assets like equipment or furniture or what have you, rather than paying the team and partners fairly to keep morale high.
This is awesome, but 7:1 ratio is hilariously unacceptable under any coop model, especially in 2024. If you're including expenses and existing ownership of property then maybe? Maybe the landlord is investing free rent and contributing large amounts of venture capital for that. But in the full swing no one should be taking home, in pure profit, more than 2-4x what everyone else is. Coming from someone who has lived and worked around the world in small communes, small businesses, and mega corporations. The entire point of a coop business structure is to ensure no one is eating everyone else's hard work in getting things going and maintaining that momentum, while every single person is busting their ass getting it all moving smoothly. No couching the sweat and taking home 7x. That's the primary reason these business plans don't work.
With very specialized work that 1/2,1/4 ratio isnt going to scale. You simply just wouldn't be able to charge enough to attract the people in a specialized space. I think 7:1 is the upper bound though. Neuro-surgeon with private practice getting paid 1 mill a year, the front desk is getting paid $250k (1/4th). You could pull it off for a small scale but you couldn't bill enough to attract more surgeons. You could pull it off at 1/7th ($140k for front desk) though and go after the high end. The main point is the current 250X to 1 upper bound is a problem.
@@VulkCoop Thanks for the response! I completely missed the obvious variable with specialized/skilled work, and I know that pain personally in these situations as a teammate, offering up both highly-valuable work and unskilled labor at minimum wage or even pro bono. Then again, those situations were strictly limited to getting operations moving in the beginning, with a personal cutoff deadline for expecting a return or just leaving, I consider it an investment, and everyone helping to get things off the ground with work are investors, not just the VC or whomever is actually laying down funds. Just in general terms, outside of co-ops, we all know that startups have appx 1/10 success rate, so after a few attempts, it does get tiring, especially in cases where a lot of the initial investment went towards liquid assets like equipment or furniture or what have you, rather than paying the team and partners fairly to keep morale high.
Great breakdown 💯
Glad it was helpful!