The Mark Cuban Stimulus Plan – Open Source Funding
As you will note from this blog, I previously challenged Mr. Mark Cuban (Billionaire, owner of the Dallas Mavericks NBA Franchise) to make better use of his money and creative talents, as a role model to entrepreneurs, than racking up over a million dollars in fines from the NBA due to league conduct violations. Now I can’t take credit for it turning into what you will read below but Mr. Cuban has decided to create his own economic stimulus of sorts. After reading his offer and challenge let us know what you think of the idea, is it brazen, realistic, or anything else? – LimomanGary
From the blogmaverick: (Mark Cuban)
Feb 9th 2009 10:55PM Its easy to write about what the government or other people should do with our/their money. It’s harder to come up with a course of action that I can undertake on my own that possibly, somehow could make a difference. My first inclination is always to try to look “for the next big thing”. But the next big thing is just that, next. Its not now. Its Venture Capital. Its not self funding, renewal capital. Rather than trying to be a Venture Capitalist, I was looking for an idea that hopefully could inspire people to create businesses that could quickly become self funding. Businesses that just needed a jump start to get the ball rolling and create jobs. I’m a big believer that entrepreneurs will lead us out of this mess. I just needed a way to help. So here it is. Some people will love it, some will hate it. It is what it is. You must post your business plan here on my blogwhere I expect other people can and will comment on it. I also expect that other people will steal the idea and use it elsewhere. That is the idea. Call this an open source funding environment. If its a good idea and worth funding, we want it replicated elsewhere. The idea is not just to help you, but to figure out how to help the economy through hard work and ingenuity. If you come up with the idea and get funding, you have a head start. If you execute better than others, you could possibly make money at it. As you will see from the rules below, these are going to be businesses that are mostly driven by sweat equity. I will invest money in businesses presented here on this blog. No minimum, no maximum, but a very specific set of rules. Here they are: 1. It can be an existing business or a start up. 2. It can not be a business that generates any revenue from advertising. Why ? Because I want this to be a business where you sell something and get paid for it. Thats the only way to get and stay profitable in such a short period of time. 3. It MUST BE CASH FLOW BREAK EVEN within 60 days 4. It must be profitable within 90 days. 5. Funding will be on a monthly basis. If you dont make your numbers, the funding stops 6. You must demonstrate as part of your plan that you sell your product or service for more than what it costs you to produce, fully encumbered 7. Everyone must work. The organization is completely flat. There are no employees reporting to managers. There is the founder/owners and everyone else 8. You must post your business plan here, or you can post it on slideshare.com , scribd.com or google docs, all completely public for anyone to see and/or download 9. I make no promises that if your business is profitable, that I will invest more money. Once you get the initial funding you are on your own 10. I will make no promises that I will be available to offer help. If I want to , I will. If not, I wont. 11. If you do get money, it goes into a bank that I specify, and I have the ability to watch the funds flow and the opportunity to require that I cosign any outflows. 12. In your business plan , make sure to specify how much equity I will receive or how I will get a return on my money. 13. No mult-level marketing programs (added 2/10/09 1pm) I’msure I will come up with more rules as I see what comes along, if anything. As I find businesses I like, I will use the email address you provide before you post to get in contact with you. There will be a standard agreement, you can take it or leave it. Once I have done the standard agreement, I will post it here for all to see. This will definitely be a work in progress. Maybe it leads to great things, maybe it leads to nothing. We will find out. Im not going to claim a minimum or maximum amount or total I will invest. Im not promising I will definitely invest anything. If nothing comes along that I think is viable, thats the way it goes.
Hopefully I will invest in quite a few businesses that will lead to something more – Mark Cuban / http://blogmaverick.com/2009/02/09/the-mark-cuban-stimulus-plan-open-source-funding/
…sounds like something lit a fire under him! I think the idea has potential. Good Luck Gary, you have a great business and it deserves a chance to grow.
Sarah Caprioli-Devlin
February 26, 2009 at 3:58 pm
Sarah,
Interesting to see how this thing plays out with him; I’m not sure I like the idea of “Open” source funding in that anyone with money to burn can swoop in take your great ideas and turn them into the next ‘BIG Idea’. I would prefer that he create an open forum for people ot present their ideas directly to him and a team but place requirements on business partnering of the applicants and then for those that they invest in require that they work even closer in a collaborative effort to build and create more jobs (almost a business/jobs incubator).
Thanks for stopping by the blog and we’ll see you again soon.
Gary
limomangary
February 26, 2009 at 4:08 pm
I like your idea except for one point. i understand the let ideas move and open up across the country but shouldn’t those who originally posted the idea and plan benefit from those who use it else where. the way you state it now they leave an idea someone likes it but helps himself na dno one else and profits alone. that is not right either in my opinion. there has got to be some give and take even if it is a set buy fee on the idea. so the originator doesn’t loose out totally on making something for helping stimulate things along.
courtney-commercial
February 26, 2009 at 7:01 pm
gary we are thinking along the same lines I guess I just worded it differently. but the measure itself is sound offering something but making no real promises just because you presented and idea.
courtney-commercial
February 26, 2009 at 7:04 pm
Courtney,
I want to make sure we are on the same page? I didn’t present the idea of what Mr. Cuban put out there that was his idea, I am questioning him now on some of the parameters he has set forth. Is that what you understood, I ask because of your comment “I like your idea except for one point. i understand the let ideas move and open up across the country but shouldn’t those who originally posted the idea and plan benefit from those who use it else where. the way you state it now they leave an idea someone likes it but helps himself na dno one else and profits alone. that is not right either in my opinion. there has got to be some give and take even if it is a set buy fee on the idea. so the originator doesn’t loose out totally on making something for helping stimulate things along.
I like your idea except for one point. i understand the let ideas move and open up across the country but shouldn’t those who originally posted the idea and plan benefit from those who use it else where. the way you state it now they leave an idea someone likes it but helps himself na dno one else and profits alone. that is not right either in my opinion. there has got to be some give and take even if it is a set buy fee on the idea. so the originator doesn’t loose out totally on making something for helping stimulate things along” was that directed at me or Mark Cuban?
limomangary
February 26, 2009 at 9:29 pm
I understood who wrote the idea it is he thecomment was directed at.
courtney-commercial
February 27, 2009 at 10:26 am
Oh okay good then, initially I wasn’t quite sure.
Courtney Thanks ever so greatly for stopping by the blog and look forward to seeing back here again real soon!
limomangary
limomangary
February 27, 2009 at 12:39 pm