This idea has been floating around in my head for a while but I’ve never really discussed it except with a few close friends. Unfortunately, not a lot of people in my circle of friends would be considered particularly business savvy. That being said I really think that this idea, given the right opportunities, could succeed.
The concept is a simple one. Take a small, everyday object that isn’t particularly difficult to manufacture and doesn’t require a ton of overhead. Just for example let’s say we’re going to manufacture toothbrushes but honestly the product is of no importance whatsoever.
The idea is to create a company that produces a product that people need. The company would be entirely employee owned. There’s no board of directors, there are no stockholders, only the employees. Obviously we would need to come up with the capital to get the company off its feet and these initial investors would make a predetermined amount of interest for their initial investment.
After the initial investors are paid off all profits and revenue are filtered back into the company and to the employees. The pay structure would be a fixed rate dependent on the position the employee held. The “president” or whatever that position would be called would not be allowed to make more than four times more than the average worker on the factory floor.
All decisions made are made by all employees. Once a month or so a town hall meeting would be held to address any issues that needed to be addressed. As the company grew and made a higher profit that would be shared between all of the employees equally.
The marketing of the company would handle itself. A product made in America by a company owned and operated by its employees. I believe there are a lot of working class Americans that would be willing to bypass the “major” brand name products to purchase a product where they knew their money would be going directly to other American workers.
Right now the average CEO is making in one day what the average American worker makes in an entire year. Imagine if that money were evenly distributed between the employees that actually make that sort of profit possible.
I’m obviously no business major so can someone smarter than I am please comment on this post and tell me why something like this isn’t possible? The largest hurdle I can see is the finding the initial investment but after that what would the major roadblocks to making something like this happen be?