Asking entreprenuers to put their mouths where their money is

Feb 14 2009

If you haven’t already, please take a moment to read the Mark Cuban Stimulus Plan, posted on his blog earlier this week. Essentially, he’s offering to fund small business concepts designed to create jobs quickly and that could become self-funded through their own profits in a matter of months. He just wants to kick-start the process. He’s not even putting a minimum or maximum on the amount he’s willing to invest. Sounds good, right?

Oh yeah, but there’s a catch.

This is what Cuban calls an “open source” funding initiative. In order to qualify for said funding, you need to post your business plan on Mark’s blog. Posting on slideshare.com, google docs or anywhere public where anyone can find, read and download your plan is also acceptable. As with all things open source, the intent is that your entrepreneurial aspirations be completely open for others to learn from, draw inspiration and even steal or build upon. There are 13 rules for qualification in all.

Cuban also agrees to keep his side of the process open source as well. If he finds a business idea he feels is worth his investment, he will draw up a standard agreement which will also be posted for all to see. The entrepreneur will then be invited to take it or leave it without the benefit of further negotiations. Note that in this system, just as business owners are practically inviting others to steal their ideas, Cuban is also inviting other investors to “scoop” him on what may be the next big thing.

I have discussions all the time with people about what is and isn’t appropriate to share on the Internet. Those who know me understand that I have virtually no expectation of privacy on the web and so it shouldn’t surprise anyone that I think this is a fantastic idea.

First of all, Cuban’s invitation compels dreamers who keep their best ideas in their heads to actually write them down, crunch some numbers and justify their concept. After all, this is usually the first chapter in any successful business story. Whether it happened on a laptop, composition notebook or cocktail napkin, we all had to sketch out our businesses and sell them to ourselves. And probably our wives/husbands too.

So if you have an idea that’s worth something why not post it on the Internet? Even if Cuban isn’t interested in funding your business maybe someone else is… After all, a collateral affect of any successful open source initiative is the formation of an active community. Make no mistake, other investors are watching this with interest as are other entrepreneurs and business support services.

In my opinion Cuban is creating a positive environment of optimism, sharing and collaboration among small business owners; all of which are at a premium in this uncertain economy. So I say put your mouth where your money is and get your business ideas to Cuban and anyone else who will listen ASAP.