If the Recession is Long, Web 2.0 Startups Could Be Screwed

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  4ftern00n07/18/08 Report as spam
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  dotbomb, dotbrightfuture

  The same thing happened after the dotcom crash. Marketing budgets were
  squeezed as organisations struggled to get real value from the web. They did
  that eventually though. A lot of what was promised then has now been
  delivered. It was the assertion that it would happen over night that was false.
  
  Social media change the way consumers view and interact with organisations. I
  think they cut back on embracing those media at their peril. If visitors are not in
  a buying mood, reading negative Twitter posts about your customer service all
  day long is only going to make things worse.

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  Michael Fitzgerald08/02/08 Report as spam
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  RE: If the Recession is Long, Web 2.0 Startups Could Be Screwed

  online advertising is badly fragmented and has no real business model. Perhaps a site shakeout will help one emerge.

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  rob4CEOSpace08/28/08 Report as spam
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  RE: If the Recession is Long, Web 2.0 Startups Could Be Screwed

  As I see it, much of your success is directly dependent upon your business strategy. I can certainly understand the position of direct marketing vs brand building but I do believe there can still be a major market for the start up if they start with the proper plan.
  One major thing that most never foresee is the cost of building their brand. For most part, a start up is doomed if they don't have the needed capital before they start their branding process. And, there in lies the problem. How do start ups get funding. Banks are not fond of the idea unless you have equity to put up against the loan. The SBA from all I've heard, is not much better...the red tape and time consumption can kill a project before it gets off the ground. The biggest killer is that they will try to get you to drop the loan amount. You accept only to find out that after a year or two you run out of money and you don't have the project floating. One great resource that many start ups have been finding very helpful is an organization called CEO Space. They actually show you how to raise capital which shifts the dept load from the start up to the investors. They also work to help you build a team with members who have strengths the supplement yours. You'll never grow a business to any size if you want to be the lone ranger in the business world.

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  PAB-SB12/17/08 Report as spam
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  The Times They Area A-Chang'n

  Nothing is guaranteed long-term. The public is fickle. Get used to it. Some people can't even watch a TV program without the remote in their hand -- why would we expect any type of loyalty online or anywhere else?