Everyday we hear that another company goes out of business.
When and why does a dot-com become a dot-bomb?
After checking few dozen defunct companies, I think
the main reasons a dot-com goes bust are:
* Poor business plan.
In the last years, a lot of investment capital was spent on poorly planned companies that clearly couldn't reach profitability.
* Poor company promotion.
This applies both offline and online. Two newspaper ads and word of mouth are not enough.
* Poor financial management.
Fancy offices, free food, does it ring a bell?
* Poor Human Resources management.
With lots of cash in their hands, many start-up companies hired too many people or, even worse, hired unqualified staff. The hiring of friends and relatives often returned no value on investments.
* Errors in the company's Web site.
Sometimes hundreds of errors could be found in one Web page.
Yes, those Web site builders should go back to school-if they ever went to school for HTML at all.
Daniel Bazac
Daniel Bazac is the Web Marketer for Web Design in New York,
( http://www.web-design-in-new... ),
a site design, Search Engine Optimization and promotion company. He's been online from 1995 and he's also a seasoned Internet Information Researcher. He can be reached at mailto:danielbazac@hotmail.c...