Common Result of Dot Com Boom

The possibilities of making money through the internet are endless; however it is solely based on execution as to whether or not those possibilities turn into success stories. Unfortunately for Tom and Kaliel, Govworks.com was not a very long lived success. What seemed like a very promising venture quickly went sour, especially when personal relationships began to fall apart. In the 90s just about anyone thought they had the true money making idea for an internet business and although many have suffered from failed attempts, the chase for the dot com dream continues in heavy volume. But I can’t help but wonder, are the internet startups of today any better off than those from the 90s dot com boom?

As with nearly anything, when there is a beginning of something, like the birth of the internet, you are starting from nothing which means that adding almost anything seems like an improvement. But once something continues to grow, things like competition and learning from others’ mistakes all play a part in raising the bar. Since the 90s, technical competence has progressed and things like Web 2.0 have allowed for more opportunities for people to accomplish their desires and goals. Not to mention the fact that the few survivors from the dot com boom are making competition a tantalizing challenge where only the ambitious and clever can join in. Now with the more educated public of today, business models have needed to be more practical, especially since venture capital funding isn’t as bountiful as it used to be. Barriers to entry are still at high levels creating problems for new startups as well.

In talking specifically of Govworks.com, I personally believe that the strong personal relationship between Tom and Kaliel wound up having a negative effect on the way that the business was being run. Although Tom was eventually terminated, the reliance on his technical skills prior to his leave was too heavily weighted for too long a period of time. His skills were not as needed and as their competitors began to step things up and became closer and closer, eventually surpassing Govworks.com, Tom was not able to get them back on top. Had Kaliel not been so attached to Tom, someone more qualified and capable could have kept the company from submerging. They had the ideas, they had the vision and Kaliel did a good job at keeping the team positive and motivated, however they just didn’t have the ability to follow their ideas to the end. Without much experience Tom and Kaliel at one point certainly did make their dream a reality, such as sweeping the covers of magazines like Forbes, popping up on just about every news worthy show and even meeting with the president. But everything starts crumbling beneath them when their jobs are on the line if they can’t slow down the competition such as when EzGov launches their site first.

At first I was impressed with Kaliel’s leadership skills and figured him appropriate as CEO of this startup. He had the passion, he had the ability to motivate the team working with him and keep their spirits high even when EzGov launched before them. However, most likely to do lack of experience, their business model and planning was not sufficiently intact. Even though they were able to establish millions in worth, they didn’t plan well for how to sustain a proper amount of funding in the business and were soon left with nothing. Although Kaliel had the right intentions, one would definitely wonder whether or not he was much more than just an ostentatious salesman. Things certainly spiraled downwards when technology was stolen and you would think that one of the most important priorities of a startup company in our competitive world would be taking proper security measures. Above all, they couldn’t get their software to work properly and consistently. Perhaps if their strategy had been more focused on the testing of their software to ensure quality and public accessibility, as oppose to making a lot of money. All of these things could have been foreseen and avoided with proper precautions taken. What can be learned from the flop of Govworks.com? The overall trend of the 90s “dot comers” seems to be greed rather than ability which led to excessive company termination.