Re: UKNM: RE: A Sad day

[Ray Taylor]

James Closs <

j [dot] clossbitbull [dot] com

> said:


> >Dotcom failures fail for the same reason any other business fails:

> >

> >1. Spend too much money too quickly

> >2. Don't earn enough (or any) money quickly enough

> >3. Fail to plan for either of the above and/or fail take action when it

> >happens

>

> This is a massive over-simplification.

>


Is it? Try testing the theory against any recent dotcom failures. If it

works, it is not an over simplification. If (whatever your complicated

alternative is) works too, then your complicated theory is an

over-complication. Which is great if you are a consultant and being paid by

the hour.


However, if you have any business plans you would like me to invest in, I am

afraid I will prefer my over-simplification to your over-complication.


> Many of the recent 'failures' will have not planned to be profitable

> until after second round funding stage. Their investors will have

> said to them 'sure - we can raise you second round funding, even if

> we don't stump up the cash we're really well connected in the city

> etc etc'.


More fool them, then, for believing in the absurd. Stupid people who start

up businesses deserve to fail. I'm being too harsh? Maybe I am, but any

smart people among them will realise they have made a stupid mistake (we all

do it some times) and learn from it. The really stupid (and endlessly

boring) will moan about it not being their fault.


> Then when second round comes the investors panic and bail

> (largely as a response to market situation rather than any

> incompetence on the part of the company involved). It's no surprise

> that a company that wasn't planning to be profitable by this stage is

> then scuppered.


So basically, they took a complete gamble on the assumption that there would

be no downturn in tech share prices. And at a time when everyone over the

age of seven was predicting that there would be one! That gets them first

prize in the stupid people of the year competition in the land of stupid.


> Sad thing is, it's a domino effect. Sure, there's a good many

> screw-ups going down the tubes, but there's also a good many

> potentially decent businesses being dragged down with them.


It's a jungle out there! Keep a hold of your bananas!


Mr Simple.



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