When are business and government going to live a “healthy lifestyle”?

I just read a comment on a story in Techcrunch that got me thinking about the current financial and business downturn we are in. (ok, it’s probably more of a disaster, but I’m trying to be positive).

Anyway, Web 2.0 Bubble commented as follows:

Layoff is a corporate version of “On Diet”. If you eat too much, you blow up. There are many unsustainable “me-too” 2.0 startups. Supply >> Demand. The marketplace cannot hold that many duplicates.

Here’s the full post with all comments:

http://www.techcrunch.com/2008/10/17/keeping-count-the-techcrunch-layoff-tracker/

Anyway, I’m not sure of Web 2.0 Bubble’s complete intent here, but allow me to give my take on this. I like this analogy. It makes perfect sense to me! I exercise regularly, eat right, take vitamins, etc. Therefore I am very healthy, don’t get sick often, and have few if any swings in my physical well being. We always hear that there is no such thing as a diet. You have to live a healthy lifestyle ALL the time. You can’t eat like a pig and starve yourself later. Not only is it unhealthy, but it creates a viscous circle of gain weight, lose weight, gain more back.

Hmm, do you see my analogy taking shape now? I think the current economy, the housing boom and bust, and the dot com bubble bursting are all based on this unhealthy lifestyle. You cannot overeat and practice unhealthy habbits without an eventual crash. It could be a heart attack or bankruptcy.

Companies that didn’t overspend, overhire, AND have a solid business plan should survive. They’ve been living a healthy lifestyle. Those that havent?? Well you can find many of them in the Techcrunch layoff tracker…

Good news for Startups?

As a follow up to my last post, I want to revisit the topic of launching a startup in this economy. Despite all the doom and gloom, there is some good news. See the following:

http://permanentrecord.firstround.com/2008/10/next-we-drink-c.html

http://500hats.typepad.com/500blogs/2008/10/fear-is-the-min.html#comments

This doesn’t mean happy times are here again, but it does point to some positives we can take from this mess. Let’s not forget survival of the fittest. Perhaps thinning the startup herd is not such a bad thing. I think iLogon is a great idea that will be widly successful. But then again, doesn’t EVERY entreprenuer think the same of their startup? If the weaker startups can’t survive these times, that should help build a stronger market for the stronger early stage companies.

Despite the stock market, business credit, and gas prices, consumers are still spending money on the web (as Dave points out in his post). Consumers are still spending money everywhere for that matter. I still have to wait in line at most stores in the mall, it still takes over 5 hours to play a round of golf because they overbooked, and there is no shortage of consumers on the web.

I think it will be harder to get money, especially credit, but otherwise this could actually prove to be a good time to start up. I am bootstrapping my business venture now, and expect to do so until the end of the year. (while still trying to raise money, just expecting it won’t happen until January)

Again, if I am not right about the future potential of iLogon, then I’ll fail and learn some valuable lessons. Though I don’t see that happening…

The wrong time to launch a startup??

So after about 20 years of working for software, internet, and techonology companies, I decided to go out on my own and launch my startup. It just so happens that I chose the worst financial and economic situation of my lifetime to do it. Our government has proven it has no clue how to fix this, after they were a major contributor to this mess. Wall street is in a death spiral, and the real estate market is horrendous.

Does this mean the market is equally bad for us startups? Are there investors out there willing to take a chance? Here are a few links with differering opinions:

http://www.techcrunch.com/2008/10/10/an-ignoble-but-much-needed-end-to-web-20/

http://www.techcrunch.com/2008/10/10/sequoia-capitals-56-slide-powerpoint-presentation-of-doom/

http://www.techcrunch.com/2008/10/09/benchmark-capital-advises-startups-to-conserve-capital/

http://tinycrunch.com/2008/10/10/why-i-dont-buy-into-the-web-20-death-tinycrunch/

I’m still not sure what exactly all this doom and gloom means for startups. On one hand, credit is scarce, and people with money are starting to panic. However, an early stage startup is now no more risky than the traditional investment options.

I have a great business idea, and the right people to make it happen. Regardless of what happens in the economy and financial infrastructure, I’m pushing ahead with my startup. I’ll keep you posted on the results…