Why don’t we see more technology coops. Where the employees own the majority of the business. My thesis is, this type of business structure would outperform the current VC/Investor backed model. Especially in middle market/sme software. Where big companies don’t actually improve their product. Great market opportunity to come in and disrupt things. This kind of model gives you as employees more control over your destiny. For example, you can avoid raising a ton of debt/cash that gets deployed to inefficient areas and avoid layoffs. Allows you to avoid a ton of cash outflow to execs that aren’t contributing to the business or share buybacks. Allows you to think long term and not just one sprint or quarter out. Over the long run you’ll have a more customer centric product that will result in a solid business. Software typically runs a 90% operating margin which would result in fantastic profit sharing amongst coop employees. Anyway TC ~325
It's called a coop and some of those exist. They're typically less profitable and less growth oriented.
What tends to drive down the profitability?
The average employee is much less inclined to take risks than a company founder (which is also why employees don't tend to create their own companies). This is also something you see in European startups, they're usually more content with staying small or maybe mid size, as opposed to American hyper growth startups. Basically, they're more likely to want to cash out instead of reinvesting.
The slavery version of today is better than before but its a lot more gain on one side vs the other
Why speculate. Just try it. If it is good, it will win.
Because I’m non technical. I need a technical team onboard.
You’re basically describing Slalom :) we’re a $2.8B consulting firm and have never done layoffs
One person with full control and a lot of risk beats 100 people with limited control and limited risk.
Would you mind elaborating why you believe that? Some people believe the hive mind or collective thought process takes into account more inputs.
Survivorship bias. You only think high risk beats low risk because we only see those who took the risk and won. For every successful risk-taking CEO, there are a dozen who go bankrupt.