Business Plan Survival Tips After the Dot-Com Collapse March 2, 2001.

Business Plan Survival Tips

After the Dot-Com Collapse

March 2, 2001

CanadaStartups.com - MAC 2001Copyright 2001, All Rights Reserved

What I’m Here to Share

• CanadaStartups at a Glance

• Survival Tips: Pre and Post Dot-Com• Capital vs. Revenue• Eyeballs vs. Dollars• Growth vs. Explosion• Magic vs. Market Research

• Some Things Haven’t Changed


CanadaStartups:At a Glance

• Canada’s first online resource dedicated to the Canadian Internet Startup

• Provides members startups with tools to network, connect and promote

• Over 300 members from coast to coast• Facilitated millions in early stage investment• Brought national attention to the Canadian

startup community


Capital vs. Revenues

Then• VC funding was a

necessary step in any business

• Overnight growth was paramount for first mover advantage

• Raising money was the number one priority

• The end goal was IPO

Now• Emphasis now on

controlled growth, as first mover less critical

• Top and bottom lines are necessary steps in any business

• Number one priority is generating revenue

• End goal is continued profitability


Eyeballs vs. Dollars

Then• Currency of the internet

era was eyeballs, traffic, exposure

• Ridiculous amounts of money spent on advertising, promotion

• Business plans talked about page views, click throughs, etc.

Now• Currency of the internet

is dollars…period.• Money being more

wisely invested in sales, public relations, product development.

• Eyeballs don’t matter unless they can be converted to $$$$’s


Explosion vs. Growth

Then• First mover advantage

would ward off competition

• Key to first mover advantage was explosive growth

• The race was a sprint to the starting line

Now• First mover is nice, but

trivial in grand scheme• Explosive growth is

harmful if market isn’t ready for the company

• Big money losing firms are now small money losing firms

• Race is a marathon to the finish line


Magic vs. Market Research

Then• IDC, Gartner, Forrester,

Giga, all ruled the business plan world

• The Internet is going to be an $X trillion market

• All we need is 0.001% and we’ll all be rich

Now• Who are your

customers?• How do you know they

need what you have?• Why are they going to

pick you out over everyone else?

• Now prove it!


Some Things Never Change

• It’s all about people• Hire slowly and fire quickly• Know when you’re swimming with sharks, and

how to deal with them• Lay it on the table now!• Watch out for egos

• It’s not the beginning of the end, it’s the end of the beginning

Business Plan Survival Tips After the Dot-Com Collapse March 2, 2001.

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