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---
title: Compensation Models When You Have No Money
title: Compensation models when you have no money
collection: Public
path: Public/The Money Question/Compensation Models When You Have No Money
path: Public/The Money Question/Compensation models when you have no money
parentDocument: The Money Question
outlineId: 897d5d63-96ba-46ae-9664-ce6e6d1946d1
createdBy: Jennie R.F.
---
:::info
📢 This guide is published on coop.cool → https://coop.cool/learn/compensation-models-when-you-have-no-money-EbKTqZbWyC
:::
Money is hard. Money has traumatized many of us. But of all the conversations a new studio needs to have, this one the one that usually gets put off is most necessary.
When there isn't any, that conversation can feel pointless, or like you're just pretending to be a business while everyone quietly wonders how long they can keep volunteering.
@ -40,7 +45,7 @@ Then, as a studio, map out the bigger picture:
This can be a tough conversation. Disclosing financial precarity is a very vulnerable thing to do. But studios that have this conversation early even imperfectly or uncomfortably build a foundation of trust that supports them through much harder decisions later.
(If you're in the Cooperative Foundations program, this connects directly to "The Talk" and the open-book practices in Session 6. The [Budget Builder at coop.love](https://coop.love/) walks you through the mechanics.)
(The [budget tools](https://coop.cool/tools) walk you through the mechanics.)
## Starting from zero
@ -123,7 +128,6 @@ A bigger risk than picking the "wrong" model is not writing things down.
You don't need a lawyer for this. You just need a shared, written record that every member has agreed to. A Google Doc everyone signs is better than a verbal understanding.
:::info
**How to sign a Google Doc**\nHave each member type their name and the date in a designated "signatures" section at the bottom of the doc. Combined with Google Docs' built-in version history (which records *who* made *what edit* and *when*), this creates a timestamped record of consent.
@ -159,6 +163,6 @@ Studios that are able pay their members aren't sitting around waiting for their
## Where to go from here
1. Our [Budget Builder at coop.love](https://coop.love/) supports 3 of these approaches, with more to come. Plug in your team's numbers and see what's actually possible.
1. Our [budget tools](https://coop.cool/tools) support three of these approaches, with more to come. Plug in your team's numbers and see what's actually possible.
2. If you're in the Cooperative Foundations program, Session 6 (Equitable Economics) provides facilitated space for talking about financial need, capacity, and expectations.
3. Our [Financial modelling](/doc/06990e9a-120e-4944-9899-f76ddbcbe92a) article covers investment readiness, financial statements, and capital-raising for studios ready to think beyond initial compensation.
3. Our [Financial modelling](https://coop.cool/learn/financial-modelling-yFVGTu2QkK) article covers investment readiness, financial statements, and capital-raising for studios ready to think beyond initial compensation.

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outlineId: 06990e9a-120e-4944-9899-f76ddbcbe92a
createdBy: Jennie R.F.
---
# Navigating Capital
:::info
📢 This guide is published on coop.cool → https://coop.cool/learn/financial-modelling-yFVGTu2QkK
:::
## Financial Modelling and Investment Readiness
**The topic of fundraising can be fraught for folks struggling against capitalism's destructive influence.** This series will walk you through the steps you need to take to be ready to raise money in whatever form you plan to use—bank loans, grants, investments, revenue sharing, preferred share offerings, and more—without losing sight of your collectivist values.
There is much work to do in Canada to transform the funding mechanisms themselves to be more collectivist, such as promoting community funding models, mutual aid networks, and reinvesting profits directly back into communities and worker benefits. This is Weird Ghosts' mission. **In the meantime, game cooperatives implementing practices that align with their values can create better conditions for all workers now.**
There is much work to do in Canada to transform the funding mechanisms themselves to be more collectivist, such as promoting community funding models, mutual aid networks, and reinvesting profits directly back into communities and worker benefits. **In the meantime, game cooperatives implementing practices that align with their values can create better conditions for all workers now.**
## Why do financial modelling?
@ -53,7 +56,7 @@ This isn't meant to scare you! But the reality of Canada's funding system is tha
### Biases and Anxiety
In recent years, funders' mindsets have shifted toward recognizing the challenges faced by marginalized founders and alternatively structured companies. More support is available now, and organizations like Weird Ghosts, Marigold Capital, EDC, Women in Technology Fund, Disruption Ventures, and many others are leading the way. These groups understand the struggles cooperative and worker-centric businesses face in a world that rewards individual entrepreneurs. Unfortunately, these issues are still prevalent, so let's take a look at these biases.
In recent years, funders' mindsets have shifted toward recognizing the challenges faced by marginalized founders and alternatively structured companies. More support is available now, and organizations like Marigold Capital, EDC, Women in Technology Fund, Disruption Ventures, and many others are leading the way. These groups understand the struggles cooperative and worker-centric businesses face in a world that rewards individual entrepreneurs. Unfortunately, these issues are still prevalent, so let's take a look at these biases.
#### Reflection
@ -151,7 +154,7 @@ A good financial model shows the following:
If you've applied for arts council or other government grants, you'll notice that applications and investor requests are similar.
# How to Create Your Financial Model
## How to Create Your Financial Model
Financial modelling and scenario planning are the core tools we'll focus on in this section. Getting a handle on them will help you reach investment readiness, project future financial performance, and plan for different ways your studio's business might unfold over months or years.
@ -225,7 +228,7 @@ Some common pitfalls to keep in mind are over-optimistic revenue forecasts, unde
## For New Game Studios
📊 [Financial Model Template for New Studios](https://docs.google.com/spreadsheets/d/1SIrgtsRBtXY3d6AwkZS18Jes2AvRNOO4IMcEuk2ChoA/edit#gid=\*\*0\*\*) - choose `File > Make a copy`
📊 [Financial Model Template for New Studios](https://docs.google.com/spreadsheets/d/1SIrgtsRBtXY3d6AwkZS18Jes2AvRNOO4IMcEuk2ChoA/edit#gid=0) - choose `File > Make a copy`
If you're a brand-new studio (congratulations! 🎉), you need to build a foundation for investment readiness from the ground up. Here's how to do it:
@ -270,7 +273,7 @@ Be conservative with initial sales forecasts and factor in ample time for develo
You're on your way! Your financial model will be a massively useful tool when you approach lenders or investors and for internal planning. Don't worry about your model being perfect—most indies don't do this work, so you're well ahead of the game. You can and should revisit your numbers often, and you'll learn along the way what aspects serve your studio best.
# How to Prepare for Investment
## How to Prepare for Investment
In this section, we'll focus on investment readiness and preparing to talk to investors. We'll cover creating a pitch deck, building a deal room, and developing an investor strategy. We'll also walk through the stages of investment readiness, from initial preparation to pitching and engaging with investors.
@ -419,7 +422,7 @@ Options are contracts granting the holder the right, but not the obligation, to
#### Shared-Earnings Agreement
Similar to a revenue share loan, a shared-earnings agreement (SEAL) is repaid through revenues. However, the total amount that can be recouped is capped, and payback only triggers once founder salaries have been paid. [Weird Ghosts uses this type of agreement.](https://weirdghosts.ca/blog/how-we-make-investments)
Similar to a revenue share loan, a shared-earnings agreement (SEAL) is repaid through revenues. However, the total amount that can be recouped is capped, and payback only triggers once founder salaries have been paid. [One Canadian fund publishes the terms of the agreement it uses.](https://weirdghosts.ca/blog/how-we-make-investments)
## The Deal Room
@ -487,7 +490,7 @@ So… are you ready? And how would you know if you were? 🤔 Here's a rundown o
* Have you incorporated your cooperative?
* Do you need to register in additional jurisdictions?
* Do you have a [business plan](/articles/business-planning)?
* Do you have a [business plan](https://coop.cool/learn/business-planning-QjR0nQuq4c)?
* Does the studio have its own bank account?
**Is your game ready?**
@ -544,7 +547,7 @@ So… are you ready? And how would you know if you were? 🤔 Here's a rundown o
**What impact does your team hope to achieve?**
* What motivated your founding team to start this studio/produce this game?
* How do you [measure impact](/articles/results-flow)?
* How do you [measure impact](https://coop.cool/learn/results-flow-rLKvjnqFVm)?
* What impact have you achieved to date?
* How do you hope that your customers and community will respond to/contribute to your impact goals?

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---
title: IP Ownership & Copyright Basics
title: IP ownership and copyright basics
collection: Public
path: Public/The Money Question/IP Ownership & Copyright Basics
path: Public/The Money Question/IP ownership and copyright basics
parentDocument: The Money Question
outlineId: 78d088cc-deeb-40d0-8d0f-2495093e8dc8
createdBy: Jennie R.F.