Dot.coms facing financial test.
Dot.coms must prove they can make and manage their money or the economy risks an avalanche of internet crashes, according to an independent study.
Research by financial management solutions provider QSP, explains that the spate of UK dot.com disasters including boo.com proves the market expects online companies to grow up and show a sound business model.
The research, which looked at 100 dot.coms, found 94% cited financial management as essential for rapid growth – while 62% thought it was difficult to control growth in an internet environment.
A QSP spokesman said: ‘Lack of financial control and cashflow will cause the death of dot.coms, not good or bad ideas.’ When looking for financial advice, 70% of companies would turn to their accountant, the survey said.
- About three-quarters of the UK’s dot.com millionaires live within a ten-mile radius of Notting Hill, the Independent newspaper reported today. Research by Deloitte & Touche found dot.com stars Martha Lane Fox of Lastminute.com and QXL’s Tim Jackson were among the new economy’s big earners who lived in the area.