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Now Internet businesses were expected to come up with business plans that looked like those from real world and which included real numbers, real timelines and real results. No longer were bankers looking through rose-colored glasses. That pink ink really WAS pink (or, more precisely, now that we look at it a little closer, more red than pink, actually).
Suddenly money wasn't being thrown at Internet entrepreneurs' feet. Suddenly loans were being called up and businesses shut down. Suddenly investors were watching stock prices dwindle ever so inexorably, day by day. Suddenly investors were losing life savings and vowing to never again invest in new economy.
After big bang, landscape was strewn with carcasses of one-time high-flyers, brought down to earth by nothing more earth-shattering than simple gravity.
But like blades of grass emerging from scorched earth following a bushfire, small, conservative, money- parched, lower case e entrepreneurs got to their feet.
Unburdened by crippling debt and understanding all along that an Internet business is no different from any other business - revenues must always exceed expenses after all - their businesses survived great Internet shake-out.
For so long bemoaning to themselves, "How are we supposed to compete with big guys?", suddenly a new realization ... "How are they supposed to compete with us?". How are "big guys" able to target niche markets way we can so effectively and yet generate kinds of bucks necessary to fund their infrastructures; how can they possibly provide true customer service on a genuinely personal level, as opposed to employing an army of autobots? How can they possibly be nimble enough to turn on a dime in response to changing dynamics that occur on a seemingly daily basis? What their failure tells us is, quite simply, they can't.
So, although we're all paying price of Internet backlash, over time new norms will be established. The pendulum has now swung to both extremes - goldrush arc and backlash arc. A pendulum, though, finally comes to rest dead center.
So, hold your nerve, position yourself and your business in that center, where you've been all along, and you'll be ready to take your place in NEW new economy which will soon emerge.
Elena Fawkner is editor of A Home-Based Business Online ... practical home business ideas, resources and strategies for the work-from-home entrepreneur. http://www.ahbbo.com