Re: @d:tech World - The Experts' Secrets of Viral Success

From: Heather Ashley Wonderful <nitsug953_at_n2trouble.com>
Date: Tue 28 Nov 2000 14:31:30 -0500

JOHN GASKILL <gm_at_info-central-usa.com> WROTE:
> One of things apparent from the large number of
> spectacular dot-com failures this year is that a
> business plan is not enough. Anyone who read IPO
> prospecti from those no longer in business saw great
> business plans, beautifully prepared, with eventual
> projections of profits.

Hiya,

This came up in another discussion list. Dot coms are
failing a lot because they work on projections of
profit, and then spend accordingly, and the projections
didn't come through in reality. They spent their
projected profits on advertising.

For example pets.com shut down because they went broke
for having so much advertising they couldn't, in the
end, afford. They now have to sell off EVERYTHING to
gain some sort of profit or minimize loss. A business
plan was in place, but how does one avoid this?

Don't place any bets on projections, and only spend
what is there, not what you hope will be there.

Pets.com (example again) reached millions of people,
and they only ended up with something like a half a
million customers.

I think the dotcom failures won't reach the "mom & pop"
dotcoms as severely, as when there are only one person
run dotcoms that one person tends to take care of
everything really well. I'm not saying that they won't
shut down, but they just tend to be a little more
sturdy, IMHO.

Just a thought,
Heather
http://www.awardforum.com





Received on Tue Nov 28 2000 - 13:31:30 CST