By Sebastian Nokes
Publisher: Financial Times Prentice Hall
Price: £24.95
This book is a victim of the speed at which the internet is developing and the rapid changes in market conditions experienced by dotcom start ups.
After reading the book I was left with the impression that its concept was formulated early last year when the dotcom feeding frenzy was at its highest, was written when the market was still buoyant, but has been published after the crash. This comes through in the upbeat approach towards the availability of funding.
The information given to the budding entrepreneur is useful, but ‘everything you need to know…’ it is not. Bearing in mind the data-rich environment that is the world of e-commerce, and the near universal concern over personal privacy, it seems strange that the book does not deal with such issues as security and data protection. To tell us that the Data Protection Act 1998 came into force on 1 March, 2000 and now extends to certain kinds of manual records is not only unhelpful, it is misleading. One of the hottest assets that a dotcom can have is its subscriber list. If the company has not got its data protection policy and notices right, its database may turn out to be worthless. Surely this is something that you ‘need to know’?
“Just think of the fun you could have had if you had thought of patenting the ‘one click’ ordering process on the internet” reads the introduction. Is this a subtle reference to the Amazon patent and its on-going dispute with Barnes & Noble?
I doubt it. The chapter on the creation and protection of intellectual property only mentions patents in the context of the possibility of obtaining a patent for software that has a technical effect.
As the internet is a global phenomenon, it is dangerous to omit reference to international developments.
It is always difficult for a book with several authors to provide a coherent picture, rather than just a series of essays on a theme. The book’s editor has done a reasonable job in ensuring that there is not too much overlap. As ever with such a work, some sections of the book are better than others.
While a great deal is promised, little is delivered. Having said that, some of the chapters contain useful insights into the process of setting up an internet business and obtaining funding. There is helpful advice on what should go into a business plan, how to value an internet business and cutting back on costs.
The final chapter written by Edmund Jackson provides a fascinating insight into the way that investors see the entrepreneur.
It is all too easy to criticise with hindsight and to be fair the authors had recognised that there would be a downturn in the market. Unfortunately, even when funds were easy to obtain, I doubt whether this book would have equipped the would-be entrepreneur adequately on the quest for gold.
Jon Fell is a partner at Masons.
