Money follows ideas

Lacking the cash to commence a start up is a misnomer. There’s so much cash floating around western markets at present that the owners of this cash simply don’t know what to do with it.

All money in the world resides somewhere based on an idea. Let me explain:

Money in your wallet – based on the idea we’re going shopping, will need cash for lunch or maybe just for an emergency.

Money in the bank – based on the idea we’ll need it at a later date for something more significant and want to save it for this future transaction

Money in shares – based on the idea that this companies fortunes are improving and the money will grow and provide us with dividends and or a capital gain.

Money loaned to us – based on the idea that we can use this money to create something of bigger financial worth than the original loan and the cost of interest repayments.

All money follows an idea. Sometimes both parties profit. Sometimes one party profits, sometimes we all lose. But the thing which there is no doubt about, is the fact that money is out there for any idea, any time.   

If our start up is that idea we ought chase it and give that idea the money it deserves. The better the idea the greater the chance of accessing the money.

Over reactions

Over reactions are omnipresent in humans. The best example is the sharemarket. It is rarely priced at ‘fair value’. The sharemarket sentiment is either overly optimistic or overly pessimistic. 

it seems that managers tend to over react

it seems that employees tend to over react

it seems that VC’s tend to over react

it seems that suppliers tend to over react

it seems that customers tend to over react

The funny things is that over reactions never solve the problem, and often compound them.

Isn’t it refreshing when one of the above has a balanced and considered response to the inevitable issues which pop up in any start up business.

Be refreshing.

10 years from now

You’ll look back in way in which you can’t grasp how much opportunity lay before you.

You’ll consider the freedom of choice you really had which made anything possible.

You’ll see your business ideas, predictions and philosophies transformed into an abundant economic reality.

10 years from now you’ll be able to look back on your choices today.

In 10 years….

…don’t be the shoulda, coulda, woulda guy*.

 

 

 

 

*guy means person at startupblog in a 2008 kind of way!

Latest article

Here’s a link to my most recent ‘start ups’ article in Anthill Magazine The Australian magazine for fast growth companies.

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Click here.

It’s an extention of a recent blog entry. In future I’ll link all my magazine articles to start up blog, which tend to build on ideas in much greater depth. (I’ve been a bit lax)

I reckon you’ll digg it (as always, pun intended).

Maxjet bites the dust

Another business class only airline has bit the dust – Maxjet. You may remember our view on why Ozjet failed.

And on this occasion we have a similar theme, but not quite as extreme. Maxjet had some of their act together and survied 4 years. Like the right routes, nice inflight service and an airline lounge. But it still had a few key flaws which still leaves the question unanswered:

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Is a business class only airline a viable business model?

Start up blog says: We won’t know until someone ticks all the following boxes:

  • A new and modern fleet (18 year old 767’s don’t cut it Maxjet)
  • A cabin which is world best practice business class (Flatbeds are now the benchmark Maxjet)
  • Linked to premier frequent flyer program which links to other airlines and allows code sharing (One World / Star alliance)
  • It has international & domestic coverage in it’s home market
  • Flights every hour / a large fleet
  • It has the right level of ground service (Airport lounges / chauffer service)
  • Credit Card linkages

Maybe the business class only model could only work as a sub brand of a larger network (which Lufthansa is doing). It will be interesting to see how the remaining players net out (Silver jet & Eos)

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Insight?: Maybe people who regularly fly business class enjoy looking down on those in coach too much to leave their multi class carrier!

I’d strongly advice against starting an airline. But if you must, show your VC’s this blog entry first.