Q: When do you expect this employee-owned company to be operating?

A: 2025 or 2026. It is hard to predict, because I am not sure how long it will take me to get the first mobile pizza trailer operational and producing revenue.

Q: What types of job opportunities will there be?

A: The company will need all of the usual types of jobs to be performed, especially at first. The primary attributes for all employees are that they are hard working, want to work long term, are smart, are curious and adaptable, and who believe in the company mission. The initial emphasis will be on hiring engineers to develop automation (software, mechanical, electrical), technicians and production workers to make trailers/equipment, and subject matter experts (initially people who are really good at making pizza). The general formula is to pair automation engineers with subject matter experts. I think the first hires may be engineering students or recent graduates, who are willing to operate a pizza trailer part time, in addition to working on engineering and manufacturing. Retired people and people who are passionate about open source also may be good candidates.

Q: Are there any special skills you need help with?

A: I need reasonably priced legal help. Ideally, I would like to hire an attorney who is interested in this idea from a social perspective, and who can help me decide on the company legal structure, and create bylaws and policies that best support the mission of the company. The attorney would hopefully also be able to help create defensive patents. Lastly, it would be nice if they are willing to make pizza part time!

Q: How will an employee’s ownership share be determined?

A: It is intended that “ownership” is primarily about each employees participation in voting/governance in steering the company, rather than individual ownership of capital. In general, an employee’s voting power will probably be in proportion to their salary/compensation. I have not fully worked out how this will work, but the idea is that no person or small group will gain control, and not everyone will have an equal share. Regarding ownership of capital, see “legal form of the business” below.

Q: What about Universal Basic Income as a solution?

A: I reluctantly support UBI as a last resort measure. It could help with job loss, but it does not address the root cause problem, which is rich people owning the automation that is taking away jobs. It is a wealth transfer scheme implemented by the government though taxation. It is involuntarily taking from one group and giving to another, which I prefer not to do. It will be administered by bureaucrats under political influence, and such programs do not have a good record in providing efficient and satisfying results. While employee-owned companies are unlikely to obviate the need for UBI, at least they will help in a way that directy addresses the root causes of the problem to be solved.

Q: Will the business use franchises to grow?

A: No. Loss of governance and control that would occur by licensing aspects of the business is not compatible with the goals of the company. Growth will occur by adding more employee-owners and expanding capital though operations. There will likely be spin-off companies, but no franchises.

A: The company will most likely be organized as a Employee Ownership Trust (see Employee Ownership Trust). This seems to be the best type of structure to provide for employee ownership in perpetuity while avoiding complexity of stock transfers when employees join or leave the company. The second most likely form of organization is a Worker/Producer Cooperative. The company might be organized as a traditional stock corporation (C Corp) subject to verifying there are legal and workable means to handle stock/ownership issues and legal issues in creating appropriate corporate charter. The company is unlikely to adopt some other corporate form, such as an ESOP or Special Purpose Corp.

Q: Will the company go public so the employee-owners get a big payout?

A: No, never. This would be counter to the entire objective, as there would now be passive investors who are detached from operations and governance and are siphoning off profits.

Q: Can there be employees who are not also owners?

A: Yes, this is possible, but not desirable. The overwhelming majority of employees will also be owners.

Q: How do new employees acquire ownership shares?

A: Generally, the intent is that the employee “ownership” is about voting/governance power, and compensation and not about ownership of capital. I have not fully worked out who/what actually owns the company capital, but the intent is for the company capital to grow over time and that the employee-owners who are at the company benefit. If the company is able to grow capital from profits, indivdual employees might not actually own any of that capital. Instead, the company capital might be held in something like a trust acting on behalf of all of the people currently in the company. When a new employee joins, they may be expected to receive lower compensation for some time, as their contribution. It is my hope that the starting compensation can be competitive, but not above the norm, so there is no compromise or sacrafice needed to join the employee-owned company versus other companies. After some time at the company, some share of profits can go directly to the employee as part of their compensation, with the remainder of profits used to grow the shared trust.

Q: I want to join a startup with hopes I will get rich as an early participant. Is this employee-owned company right for me?

A: No. You should join a venture backed startup and negotiate for shares in the hope the venture succeeds and goes public, when you can sell your shares and become rich. This employee-owned company concept is for people who are willing to work hard on projects that may do more than make money, for better than average compensation, and with the ability to stay at the company long-term as your job roles change due to automation.