A succesful Entrepreneur?
Author
Discussion

STURBO

Original Poster:

371 posts

190 months

Monday 30th May 2011
quotequote all
I've seen the BBC news website sucking up to the founders of lastminute.com as if they are business gurus.

See this : http://www.bbc.co.uk/news/business-13562046

Anyway I thought I'd read about lastminute.com, there is a potted history here:

http://en.wikipedia.org/wiki/Lastminute.com

What I learned was:

In the ten months to end December 1999, the company handled £37m of transactions, which generated £330,000 of income. My god, income of 330k. Big Deal. I think my local papershop might do that.

This was the period before they went public.

That somehow led to a stock market valuation of 570 million! Over half a billion! Who worked that out.

Then:

"..until 2005, the company had not made a net profit since it floated five years earlier. In February 2005, it reported pre-tax losses of £26.5m"

So are they good entrepreneurs or just right place, right time bullstters who made a load of cash based on some decidedly dodgy valuations.

Are these the right people to be advising others what to do. Why is anyone listening to these people?

End rant.





STURBO

Original Poster:

371 posts

190 months

Monday 30th May 2011
quotequote all
OK, I can't spell successful. smile

FourWheelDrift

92,357 posts

314 months

Monday 30th May 2011
quotequote all
They are successful in the sense that every other dot.com that floated at the time has gone out of business but they are still going.

Flintstone

8,644 posts

277 months

Monday 30th May 2011
quotequote all
anonymous said:
[redacted]
I'm confused by all the pointing. Which way should we be looking?



wink

STURBO

Original Poster:

371 posts

190 months

Monday 30th May 2011
quotequote all
But the company never actually made a profit, that surely being the benchmark of a company.

They just got a load of personal wealth by convincing people to buy their shares off them at a ridiculous price.

No value added to the economy at all.

So not really good role models in my book.

nickythesaint

1,397 posts

196 months

Tuesday 31st May 2011
quotequote all
The real value of lastminute dot come was the name as I understand, it has brilliant recall and at its inception was about taking advantage of discounts for last minute deals. However, I don't think that is the case in the modern travel market. I think he bargains are to be had by booking early in most cases.

If they have that much turn over on the business does that mean they actually having a booking system on their website and then pay the travel co / hotel / airline?

I was under the impression it was an affiliate website, i.e. you find the flight or hotel or holiday package, click through to the underlying service provider and they get a kick back for the referral?

Murcielago_Boy

2,014 posts

269 months

Tuesday 31st May 2011
quotequote all
STURBO said:
But the company never actually made a profit, that surely being the benchmark of a company.

They just got a load of personal wealth by convincing people to buy their shares off them at a ridiculous price.

No value added to the economy at all.

So not really good role models in my book.
Correct - the bankers (with the help of the dotcom boom) made themselves a load of money ripping of investors buying into a dog-st no-revenue company.
That's "corporate finance" for you.

Just have a look at what Goldmans have done with another dog-crap company Linked In - $90 per share.. aaaaaahahahahahahahaha....









elster

17,517 posts

240 months

Tuesday 31st May 2011
quotequote all
It seems to be the modern way to do business models.

Ocado is doing the same thing.

A worthless company that doesn't make money, yet will make them several million on floatation.

rah1888

1,589 posts

217 months

Tuesday 31st May 2011
quotequote all
elster said:
It seems to be the modern way to do business models.

Ocado is doing the same thing.

A worthless company that doesn't make money, yet will make them several million on floatation.
Run by a few ex-Goldman employees I believe.


Alex

9,978 posts

314 months

Tuesday 31st May 2011
quotequote all
Twitter hasn't made a profit yet. Facebook is barely profitable.

fss111

644 posts

186 months

Tuesday 31st May 2011
quotequote all
Alex said:
Twitter hasn't made a profit yet. Facebook is barely profitable.
Have a look at this:

http://www.telegraph.co.uk/technology/facebook/849...

Disastrous

10,216 posts

247 months

Tuesday 31st May 2011
quotequote all
Assuming they have managed to effectively become very rich through funding, floating and not actually having much of a business underneath it all, I'd argue that were incredibly successful entrepreneurs. I mean, it must be easy to make money with a good business...

Oakey

27,984 posts

246 months

Tuesday 31st May 2011
quotequote all
fss111 said:
$100billion? That's hilarious.

Bing o

15,184 posts

249 months

Tuesday 31st May 2011
quotequote all
Oakey said:
$100billion? That's hilarious.
Think of what all that data would be worth to advertisers/scammers/governments...

(I agree it's a joke though)

FourWheelDrift

92,357 posts

314 months

Tuesday 31st May 2011
quotequote all
The business for selling personal data is a very profitable one.

neilr

1,588 posts

293 months

Tuesday 31st May 2011
quotequote all
At least LastMinute.com actually had/has an appropriate name though. It did seem during the dotcon boom that the dotcom landscape was awash with companies who had names like oblisk.com running adverts showing polar bears flying kites in the sahara and not telling you what they did (the business, not the polar bears). You'd then find out they sold furniture polish online or some equally worthless crap. The failure of the dotcom farce wasnt really a suprise was it.

What is a suprise, ill agree, is how Lastminute are still solidiering on if thats the state of their business.

Slaav

4,375 posts

240 months

Tuesday 31st May 2011
quotequote all
Be careful of how quickly history repeats itself... This is happening again as I type!

Trust me frown

Oakey

27,984 posts

246 months

Tuesday 31st May 2011
quotequote all
Bing o said:
Think of what all that data would be worth to advertisers/scammers/governments...

(I agree it's a joke though)
Haven't they promised they won't give out user data?

Bing o

15,184 posts

249 months

Tuesday 31st May 2011
quotequote all
Oakey said:
Haven't they promised they won't give out user data?
Jimmy reckon

Police State

4,379 posts

250 months

Tuesday 31st May 2011
quotequote all
Oakey said:
Haven't they promised they won't give out user data?
Except to 'affiliates and business partners'. In other words, anybody that pays them a fee will get their hands on your data. They're all at it.