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- I have to disagree here - the main issue is response rates or brand recall rates. Advertising is just not effective when you are trying to get someone's attention when they are focused on...
- It is not beyond hope to imagine that with appropriate technology we can get beyond this fear that agencies have of getting associated with the wrong content. Particularly if we can better...
- Every ad sales agency I speak to says the same thing: advertisers will pay premium rates on the web, but not to be associated with User-Generated Content (UGC). The limitation that social networks...
- I'm sure they would disagree, but at the same time I would expect their plans to have enough slack to cope with that scenario.
- With games companies like Zynga and Playfish make revenues estimated between $50 million and $100 million purely on social networks like MySpace and Facebook, it seems inevitable that Facebook will...
The Equity Kicker
Nic Brisbourne’s view from London on venture capital and exploiting change in technology and media
Advice from the founder of Business Objects on how to cope with the downturn
Started by brisbourne · 6 months ago
Posted by mobile phone:Every day now people ask me what impact the current economic malaise will have on startups. My standard answer is that so long as you are attacking a growth market (and if you’re not that raises a bunch of other questions…) then it shouldn
... Continue reading »
9 months ago
Credit will be less cheap than it was. If you're taking out a bank loan to fund your business, more of your day-to-day cash will be spent on repayments. Which means spending less on other things.
Nic, I'd speculate that VCs leveraging funds will need to pass on additional costs, so funding structures may become more onerous for startups. You may be able to correct me on this...
The ftse was at 6730 in June last year, and is now at around 5,300. So new businesses that rely on custom from public companies may find them hesitating to spend money.
But it's important to keep things in perspective: how much more expensive will money be? How much less will customers invest? At the moment, the answer to both questions seems to be "not much".
New businesses are generally more agile and can cope with difficulties more easily. They also have better memories of dealing with hardship than established companies.
The advice above, that you should concentrate on your core business, is OK. But you should always be asking "what do people want, and how can I deliver it?". If that leads you to realise there's a market for related products and services beyond your core business, then it's obvious you should try to meet that demand if possible.
9 months ago