Comments on: Don’t Batten Down The Hatches on a Shit Business

By: Fuck Survival: If You Ain’t in It for the Money Then Get Out the Game : The Drama 2.0 Show

Wed, 15 Oct 2008 20:39:30 +0000

[...] April, I advised “Don’t Batten Down The Hatches on a Shit Business” and wrote: Cost structure is very important during an economic downturn but revenue and business models are [...]

By: SKMurphy » Recession Requires A Focus on Revenue

SKMurphy » Recession Requires A Focus on Revenue — Mon, 07 Apr 2008 10:12:08 +0000

[...] expense control at VC backed companies is going to be increasingly the focus at board meetings. But bootstrapping firms are born with [...]

By: Cyndy Aleo-Carreira

Cyndy Aleo-Carreira — Sat, 05 Apr 2008 02:44:48 +0000

But did you see Facebook grabbed one of the Google chefs?

By: Drama 2.0

Drama 2.0 — Thu, 03 Apr 2008 06:18:51 +0000

Paul: you do make a valid point but your qualification (the assumption of a long-term vision for profitability) is exactly what is lacking in Web 2.0 today.

For most Web 2.0 startups, there is rarely any long-term vision at all – only a short-term vision to get bought out for a lot of money.

By: Paul

Paul — Thu, 03 Apr 2008 06:06:43 +0000

“Cost structure is not winter clothing that suddenly becomes fashionable when the economy gets cold.”

Love that – I will use it and properly attribute it as well

Notwithstanding, it’s not *always* true. in times of hypergrowth in a market it’s arguable that cost structure can be sacrificed in the short term to achieve market share (assuming a long term vision of profitability exists). That doesn’t mean that every 2.0 company pissing away money to build up eyeballs is justifiable; but it does mean that in certain circumstances, when the proper capital structure is in place, companies can ramp up their spend in order to get traction in the market during periods of high market growth when market share is more important than short term financial metrics.

Paul