When the whole credit crunch happened (or started happening) a few of us saw it as a big excuse for the average entrepreneur to throw in the towel and leave their business with a huge pay out. (Legally or illegally). We saw it as a (suspiciously) creative way for the business owner to milk the last finances out of the business and get out – the modern day bankruptcy method for a modern-day entrepreneur.
You see a long time ago someone told me that the average life-cycle for an entrepreneur was this:
1- Come up with a strikingly remarkable business idea from one’s basement or dorm room (think Yahoo,Google,Twitter etc)
2- Be an overnight success and enjoy a very profitable 15minutes of publicity and celebrity
3- When everyone thoroughly knows what your business is about you go public and get a billion or two from the shares you sell
4- Leave the running of the business to the board of directors and live your life on a yacht the size of the Madison Square Garden and chase the Formula 1 circuit for the rest of your life.
5- If 3 above fails, you get yourself acquired by the big boys (think Google buying up mapping and navigation companies to strengthen Google Maps) and hopefully still enjoy point 4 above.
6- OR, if all else fails and you had a decent business for years but just want out because points 3,4 and 5 never happened to you, you blame everything on your share-price. The excuse here is to make it as if the 10p price tag to your bank’s shares is the reason you are going down and not your business practices. We all know the share price is secondary, first you make a sound business then your share price rises or you make un-sound business decisions and your share price plummets. The share price in itself has never influenced your business health and never will. The share price is a result and not a cause! So next time your bank tells you the £3000 you deposited last week is gone because the share-price went down don’t buy it. I hope you didn’t when they said it last year!
You and I may call point 6 the credit crunch but I do hope you see why it’s all rather suspicious. I have a good business head and just do not see why and how a business being touted as the biggest and best in such and such country will fall overnight when everything is above board without any weird accounting practices or underhanded dealings. There has to be more than meets the eye here or should I say what the press presents to us (think Enron except on a global scale).

The whole situation stinks and we need a new school of thought that teaches our MBAs to have responsibility beyond their wallets. A wise man once said that as human beings, “our biggest fear is not that we are inadequate but rather that we are powerful beyond measure.” Let’s use this power for good – financial good for all.

Mr Smith is the owner of JAX Internet, here he writes on the credit crunch situation. Stop spending too much hard earned money on your website. Visit http://www.quicksitemaker.co.uk for ways to design and market your website saving money.

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