Tuesday, March 13, 2007

There is nothing like bad business

Alright - I know most people think I am old fashioned when it comes to business and call me crazy but I thought the entire point was that you were in business to make money. Right?

I remember the DOT.COM craze with all the talk of the new economy. With Venture capitalists throwing money at small Internet start ups, even if the business plan was crap or better yet - "What business plan?" Remember our annoying little friend, the PETS.COM sock puppet. News flash, he is gone.... "Why you ask?" Well, he got a weeks severance when they closed up shop. Businesses need to make money, in order to pay employees, pay the rent, buy and store inventory, ect. So it matters not if it is "new economy" or "old economy" the bottom line is the bottom line is the bottom line.

Now the buzz word is "sub-prime" --bottom line - bad business decisions will eventually bit you in the butt. Just ask Jeffrey Skilling and his ENRON henchmen - there is no business like bad business. Bad loans add up and eventually someone has to pay, the borrower pays, the share holders of the bank pay and we as investors pay when the market slides as it did today.

Begs the questions - when will the high paid CEOs wise up and learn - there is no business like bad business!

1 comment:

IHateToast said...

when they think that getting caught/busted is a real chance and not a fluke.