The first key to starting a successful business is lowering start up costs.  Working in fellowship one with the other cooperatively using shares as a local currency is able to virtually eliminate the cost of starting a business.

The costs of starting a business create risk. By cooperating and using shares as a local currency instead of competing and creating debt the costs of starting a business are turned into part of the equity of a business. Instead of paying to obtain help economic rationalism is a way for people to help one another cooperatively, without risk. For example, instead of buying supplies and increasing debt and risks, supplies are obtained on the basis of a cooperative exchange using local shares as money. This lowers costs and helps eliminate the risks associated with starting or operating a business.

Starting a business requires a product or service be developed which can run into substantial costs depending on how much technical development is required. People who have the skills and experience needed to produce and service the product are required. Machines, work space and materials are also needed.

Conventional businesses owners need to borrow or save up a considerable amount of money to start even a relatively simple business. Due to the high levels of debt new businesses accumulate and the organizational demands placed on the owners of new businesses conventional businesses have a high rate of failure. The inability of the owner to keep up with the financial and organizational needs of the business is often the reason why new businesses tend to fail within five years.

The conventional start up pays people to do what needs to be done as a job. These jobs are assigned and administrated by the business owner whose expertise may well not be up to hiring competent people in certain fields. Administration serves to assign people to work they may not be good at or interested in doing. All these inefficiencies create costs that could, in a cooperative environment, be avoided.

Conventional methods are a costly and ineffective way to set up a business and this is why the failure rate is high. Rational Workshops never fail. All costs are incorporated into the business itself. The failure of a Workshop is akin to a family ceasing to help one another. 

 

There Is No Tomorrow:

A short video on sustainability and the cost of oil as it impacts our economy and our future

http://youtu.be/VOMWzjrRiBg

 

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  Start Up Costs

"working hard to eliminate costs"