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I spotted this really clever video about the Web 2.0 bubble (or not?) over on Ben Kepes blog. The tune it’s made to is the 1989 song “We Didn’t Start The Fire” which, interestingly enough is a song that any red blooded GenX’er (or Baby Boomer) should know and love.  The video itself though brings back some chilling reminders of the prior dot com bubble which the GenY new business builders may not have personally experienced.

A lot of the new web businesses (especially Web 2.0) coming through these days are started by GenY’ers who weren’t part of the dot com crash a decade ago. I see everyday signs of a looming bubble, and think that the GenY’ers should study what happened in the previous crash and learn from it.

On the flipside, there are quite a few GenX’ers and baby boomers I know of developing new Web 2.0 model businesses and SaaS co’s that have been through the prior bubble and learnt from it. These more experienced folk are developing web businesses that actually do have solid products, markets, business models and revenue streams (things overlooked in the prior bubble).

Have fun watching the video, but I’d like would like to pass some advice to new web businesses to avoid the bubble (if it comes)…

  • Ask the customers what they want, and commoditize it
    (don’t guess or assume)
  • Make ‘much needed‘ solutions for ‘common‘ problems
    (not stupid/obscure products with gimmick factor for non-markets)
  • Keep expenses to a minimum
    (But spend well to get the right employees)
  • Don’t take investment until you can scale revenue
    (And sell only the minimum amount to investors)
  • Use SaaS as a key business model
    (But make sure you charge enough to cover costs profitably per customer)
  • Hype does not equal Credibility!
    (Customers in a SaaS relationship want to see credibility. If customers buy in though hype based marketing you’ll get high churn. To build credibility, use relationship building approaches to your marketing)


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Julian Stone, CEO – Project Management Software visionary for:, &

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About The Author:
Julian Stone begin_of_the_skype_highlighting     end_of_the_skype_highlighting is the CEO of ProActive Software, developers and creators of the leading web based project management software