Date of issue : Friday 08th 2000f September 2000

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September 08, 2000. No.8

This is a monthly virtual magazine for the thinkers and doers of the 21st century.
This magazine is free! You don't have to pay any charges.
Editor: Mario Raich, Ph.D.

Starting a new venture was never easy. It was always based on a good idea, right timing, the necessary cash, some luck and a lot of perseverance. It was only in the crazy days of the “gold rush” to the internet in 1999/2000 when it looked like the laws of economics were invalid. In reality several principles do apply:

• Everything takes longer than planned. Entrepreneurs are impatient people, they want to see their venture up and running as soon as possible. Everything takes more time than anticipated setting up an office, finding the right people, developing the products and services, finding the first clients, getting paid etc. Make your plan and than double the time and you will be probably close to reality.

• Don’t run out of cash! This is the most crucial of all business principles.

• Finding and managing the right kind people is usually more difficult than anticipated. Most people don’t have to much risk appetite, when it comes to their job. They want a minimal level of security. Working for a start-up can be very risky. You have to make this up through direct participation. Building a good team takes time and needs a lot of work.

• Forecasts are rarely accurate. Let’s make a plan and than wait and see. Reality is always more differentiated than we anticipate. Be ready for surprises. In the initial stage a lot of improvisation and flexibility is an important asset. But watch your cashflow. This is your most important performance indicator in the beginning.

• Gaining credibility on the market is difficult. Most of the time the credibility of the start-up is close to zero. No track record, nothing to demonstrate, just a lot of hope and a bright future. Take your time to build relationships with suppliers, to educate the marketplace and to convince your key stakeholder.

• Conflicts with partners and with investors are very probable. Prepare an exit strategy in case of major disagreements with one of your partners of with an investor. Humans tend sometime to behave in strange ways, when money is at stake.

• Build a corporate culture that suits the New Economy: create direct participation, becoming is more important than having and being, keep the entrepreneurial spirit.

• Be ready for relentless pressures in the business, but work hard to achieve a balance in your life: be with your family, stay in touch with friends, take care of your health, work on you self-development and enjoy your life outside work.

Entrepreneurship is the driving force of the New Economy. Since entrepreneurship is the human ability to take an idea and to create “real things” that create value, the ability to find good ideas is becoming extremely important. The ability to have good ideas for business is called “business creativity”.
Organizations and firms will need more new ideas than ever in order to be competitive. Those who will not be able to tap into all resources they have to get as many new ideas as possible in a permanent way, may quickly run out of steam.
They will need creative integrated solutions, based on business creativity and leadership.

We have started a research on the New Economy. The purpose is the development of concepts and models and new management practices.
A virtual team including people from the corporate world and from academia has begun to look at the New Econmy.

Analysis of existing offers of best practices in, of publications and of leading providers (e.g. PWC USA).
Definition who is who in the New Economy (people and companies) and defining role model companies (e.g. AOL, Broadvision, eBay, Fantastic, ThinkTools etc.)


The process
On-line
1. Mapping
2. Exploring
3. Drilling
Outcome: Who is who? What is where?

On-site
1. Interviews
2. Exploring
3. Analysis
Outcome: Reports, Descriptions, Cases


We are looking for your suggestions and your participation. This is an invitation to participate in an fscinating journey towards a new business venture.

The virtual Magazine “Knowledge Economy” is free of charge and has no advertisement.
We invite you to send the Magazine to other people that may be interested in the dialogue between the academic research and the business application.
We use a policy of “Right to copy”. For details look at section 7 “Research” in the issue No.1, January 2000