What were the mistakes of the days of dot-com mania?

Hi Thomas!

Thanks for your post....

(For those who don't know, Thomas is my youngest brother. He's currently working for a hedge fund in New York City for a short time, as he's in the process of completing his university studies in finance....)

> The
> truth is, the internet does change the way
> some businesses operate, as transaction
> costs come down and more specialised
> "niche" businesses become viable.

Yes, I agree with you here.... The internet makes it much easier for "niche" businesses to reach their audience. I think this is the real power of the internet for business....

> Seeing this great flow of money to the
> industry, I think this encouraged
> entrepreneurs to this modern-day gold field
> in an effort to speed up their retirements.
> Of course, this isn't a blanket statement; I
> know there are entrepeneurs out there that
> have entered the internet arena due to
> genuine ideas about viable businesses.

I agree with you here, it sure was like a "gold rush" !

Some of the ones who have done the best seem to be those who have "sold shovels to miners" - that is, those who have sold the tools of ecommerce to the people seeking gold....

That is, when there is a "rush", instead of joining the crowd they treat that crowd as a great potential market, and ask themselves, "what do these people need" ? It's an interesting perspective....

Thanks Thomas for your insights! :)

- Dien Rice

There is a very good documentary called Startup.com. Two friends leave their jobs to start an Internet business.

Shows their entire process of thinking from dream to bust.

Matt

into a pool blindfolded, unless you know there is water in it first!

Paul