Global: MicroIPO English version
Task:
During financial crisis there are following complexities:
- At banks - insufficiency of funds with which it would be possible to credit "doubtful" enterprises;
- At small-scale business - complexities with reception of the credit because of the absence, demanded in such cases in banks of a packet of documents, and, frequently, negative (for banks) operational indicators;
- At private microinvestors - placing of available assets on the deposit in reliable banks does not cover even a rate of inflation, and also absence of interest at investment companies to those small means which they could invest.
How to co-ordinate their interests?
The decision:
As the decision it would be possible to offer such absolutely new tool which, under my data, is absent in the world market as microIPO. Would like pay attention that the term IPO It is chosen as most close approaching on sense, but such scheme not reflecting to all completeness.
The scheme microIPO Consists in the following:
1. The small enterprise or the Individual businessman makes the decision on placing microIPO. With that end in view it comes on the Bank site where the table with questions on its enterprise which include the information demanded for an estimation reliability of investments is placed. Such as, for example, availability of the business plan (is + 1 point), insurance of risks (there are +5 points), profit for the current period (is +? Points), what share from profit and following the results of what period it is ready to list to Investors (for example, 10 % of profit monthly or 50 % of profit following the results of a financial year - different points). Having filled columns, the businessman receives the summary table in which in the form of quantity of points the risk degree of a non-return of the placed means is estimated. I.e. if you have typed 20 points the probability of return of means constitutes 20 %, if 60 points, that, accordingly 60 %. After that the button is pressed to direct the request on microIPO.
2. The size of one share microIPO is desirable not should to exceed 20 - 50 USD.
3. The Bank officer accepts the filled form and in the reply letter appoints term when it is necessary to approach in Bank for granting of a formal packet of documents. Pay attention: FORMAL - the charter, certificates on statement on accounting in tax, etc., confirming actual existence of the given enterprise.
4. The Businessman pays placing of the initial information on the planned microIPO in the booklet which is delivered on mail boxes of inhabitants of area where its enterprise settles down.
5. The investor is the inhabitant of area where this enterprise is located, i.e. can daily see its condition. Having shown interest to the offered microIPO, he by means of phone call or by Internet reports about it in Bank.
6. After enough of such formal requests will be collected, the Bank informs Investors on time and meeting date (in Bank territory?) on which the Businessman will prove to Investors that it will return required means. i.e. conversation is led «looking eyes to eyes».
7. Upon termination of meeting, Investors accept the final decision about investment of means.
8. The Bank signs with the Businessman the obligation about availability at last unique account in this Bank. Other accounts in other banks should be closed.
9. The Businessman should sign other documents which made a reservation in the prospectus IPO, For example, the life insurance Agreement, etc.
10. The Bank signs with the Investor of the obligation about bank account opening, with credit card/debit card reception which incomes will be enlisted from microIPO.
11. The Bank signs the agreement on rendering of administrative/legal services (on which the Bank officer "leads" the Businessman) with Investors/Businessmen and can challenge unreasonable, according to the Bank, financial transactions. The Businessman pays services of this officer proceeding, for example, about 30-100 USD/months
Thus, as a result participants of the given process receive:
- The Businessman - interest-free means from the initially benevolently set up investors.
- The Investor - possibility to place means, profitableness from which placing, at least, will be above level of deposits in banks. Besides, the Businessman can at payment of its goods by the cards which have been given out by Bank to Investors in frameworks microIPO to give a discount for the goods implemented by it or services. A condition of the microIPO enterprise the Investor can see every day.
- The Bank - receives expansion of initially loyal client base and that the most important thing, account balances which uses within the limits of the programs of increase of profitableness.
Such project also will be favourably accepted:
- Liberals - because develops enterprise activity of the population, i.e. those groups which have not been involved (pensioners, etc. earlier).
- Communists - because such form of investment as a result is based on mutual aid between the Businessman and the most deprived levels of population (besides pensioners, etc.).
- Religious people - because such form of investment does not mean a loan interest condemned by all basic religions (as, for example, Orthodoxy, or Islam (mudaraba/musharaka).
- Statesmen/conservatives - because this project allows to develop small-scale business without additional costs from the state.
- Antiglobalists - because deprives of possibility of "fat cats» to make profit of «the simple person».
Development:
As idea development microIPO, It would be possible to offer PrivateIPO. When under the same scheme receives money the private person, for example, for education payment. As the obligation payment to investors during the stipulated term of the wages share received after the termination of education can serve. At this method of investment, probability that «new country genius» will get worthy education increases.
Also venture investments are possible also. It can be such projects as opening of a new footwear repair, or production «in garage» nano-computers. Advantage of the offered scheme consists that a major factor of reception of investments is the capability of the Businessman to convince people that its idea is viable. If it cannot convince of it 100-200 persons where a guarantee that its goods/service will be claimed by a considerable quantity of consumers.
Problems:
1. The main problem consists that, at least, personally to me absolutely not clearly what should be, from the legal point of view, the tool which is supposed to be implemented in frameworks microIPO. As I already wrote above, it only the conditional name IPO, Which does not reflect all essence of the offered mechanism. What shares at the Individual businessman can be? How to arrange shares at Ltd. Company (which are the majority of small enterprises)? In my opinion the new tool which would include signs of shares (as registration of a share of the enterprise) and veksels (as payment pure obligation) should be developed. I have not found the decision of this problem.
2. Problem in absence of specialists (bank officers) which could lead the Businessmen within the limits of this program.
3. Problem in absence of a technique / the computer scoring program estimating risks of return/non-return of the invested means.
Problems, actually, is much more and a question who will give premises for presentations and who will print and extend the newsletter on the assumed microIPO and many other questions. However, having solved the first and main problem (with the legal tool) it is possible to have absolutely new system of development of commodity-money relations, at least, at the local level, not connected with loan interest activity at which banks will take a new place in society life.
I ask not to criticise my formulations - I'm not the economist and not the financier, and also I have no relation to banking activity. I will be grateful for adjustment and the offer under the main point decision - what can be the tool microIPO?
During financial crisis there are following complexities:
- At banks - insufficiency of funds with which it would be possible to credit "doubtful" enterprises;
- At small-scale business - complexities with reception of the credit because of the absence, demanded in such cases in banks of a packet of documents, and, frequently, negative (for banks) operational indicators;
- At private microinvestors - placing of available assets on the deposit in reliable banks does not cover even a rate of inflation, and also absence of interest at investment companies to those small means which they could invest.
How to co-ordinate their interests?
The decision:
As the decision it would be possible to offer such absolutely new tool which, under my data, is absent in the world market as microIPO. Would like pay attention that the term IPO It is chosen as most close approaching on sense, but such scheme not reflecting to all completeness.
The scheme microIPO Consists in the following:
1. The small enterprise or the Individual businessman makes the decision on placing microIPO. With that end in view it comes on the Bank site where the table with questions on its enterprise which include the information demanded for an estimation reliability of investments is placed. Such as, for example, availability of the business plan (is + 1 point), insurance of risks (there are +5 points), profit for the current period (is +? Points), what share from profit and following the results of what period it is ready to list to Investors (for example, 10 % of profit monthly or 50 % of profit following the results of a financial year - different points). Having filled columns, the businessman receives the summary table in which in the form of quantity of points the risk degree of a non-return of the placed means is estimated. I.e. if you have typed 20 points the probability of return of means constitutes 20 %, if 60 points, that, accordingly 60 %. After that the button is pressed to direct the request on microIPO.
2. The size of one share microIPO is desirable not should to exceed 20 - 50 USD.
3. The Bank officer accepts the filled form and in the reply letter appoints term when it is necessary to approach in Bank for granting of a formal packet of documents. Pay attention: FORMAL - the charter, certificates on statement on accounting in tax, etc., confirming actual existence of the given enterprise.
4. The Businessman pays placing of the initial information on the planned microIPO in the booklet which is delivered on mail boxes of inhabitants of area where its enterprise settles down.
5. The investor is the inhabitant of area where this enterprise is located, i.e. can daily see its condition. Having shown interest to the offered microIPO, he by means of phone call or by Internet reports about it in Bank.
6. After enough of such formal requests will be collected, the Bank informs Investors on time and meeting date (in Bank territory?) on which the Businessman will prove to Investors that it will return required means. i.e. conversation is led «looking eyes to eyes».
7. Upon termination of meeting, Investors accept the final decision about investment of means.
8. The Bank signs with the Businessman the obligation about availability at last unique account in this Bank. Other accounts in other banks should be closed.
9. The Businessman should sign other documents which made a reservation in the prospectus IPO, For example, the life insurance Agreement, etc.
10. The Bank signs with the Investor of the obligation about bank account opening, with credit card/debit card reception which incomes will be enlisted from microIPO.
11. The Bank signs the agreement on rendering of administrative/legal services (on which the Bank officer "leads" the Businessman) with Investors/Businessmen and can challenge unreasonable, according to the Bank, financial transactions. The Businessman pays services of this officer proceeding, for example, about 30-100 USD/months
Thus, as a result participants of the given process receive:
- The Businessman - interest-free means from the initially benevolently set up investors.
- The Investor - possibility to place means, profitableness from which placing, at least, will be above level of deposits in banks. Besides, the Businessman can at payment of its goods by the cards which have been given out by Bank to Investors in frameworks microIPO to give a discount for the goods implemented by it or services. A condition of the microIPO enterprise the Investor can see every day.
- The Bank - receives expansion of initially loyal client base and that the most important thing, account balances which uses within the limits of the programs of increase of profitableness.
Such project also will be favourably accepted:
- Liberals - because develops enterprise activity of the population, i.e. those groups which have not been involved (pensioners, etc. earlier).
- Communists - because such form of investment as a result is based on mutual aid between the Businessman and the most deprived levels of population (besides pensioners, etc.).
- Religious people - because such form of investment does not mean a loan interest condemned by all basic religions (as, for example, Orthodoxy, or Islam (mudaraba/musharaka).
- Statesmen/conservatives - because this project allows to develop small-scale business without additional costs from the state.
- Antiglobalists - because deprives of possibility of "fat cats» to make profit of «the simple person».
Development:
As idea development microIPO, It would be possible to offer PrivateIPO. When under the same scheme receives money the private person, for example, for education payment. As the obligation payment to investors during the stipulated term of the wages share received after the termination of education can serve. At this method of investment, probability that «new country genius» will get worthy education increases.
Also venture investments are possible also. It can be such projects as opening of a new footwear repair, or production «in garage» nano-computers. Advantage of the offered scheme consists that a major factor of reception of investments is the capability of the Businessman to convince people that its idea is viable. If it cannot convince of it 100-200 persons where a guarantee that its goods/service will be claimed by a considerable quantity of consumers.
Problems:
1. The main problem consists that, at least, personally to me absolutely not clearly what should be, from the legal point of view, the tool which is supposed to be implemented in frameworks microIPO. As I already wrote above, it only the conditional name IPO, Which does not reflect all essence of the offered mechanism. What shares at the Individual businessman can be? How to arrange shares at Ltd. Company (which are the majority of small enterprises)? In my opinion the new tool which would include signs of shares (as registration of a share of the enterprise) and veksels (as payment pure obligation) should be developed. I have not found the decision of this problem.
2. Problem in absence of specialists (bank officers) which could lead the Businessmen within the limits of this program.
3. Problem in absence of a technique / the computer scoring program estimating risks of return/non-return of the invested means.
Problems, actually, is much more and a question who will give premises for presentations and who will print and extend the newsletter on the assumed microIPO and many other questions. However, having solved the first and main problem (with the legal tool) it is possible to have absolutely new system of development of commodity-money relations, at least, at the local level, not connected with loan interest activity at which banks will take a new place in society life.
I ask not to criticise my formulations - I'm not the economist and not the financier, and also I have no relation to banking activity. I will be grateful for adjustment and the offer under the main point decision - what can be the tool microIPO?