Jobster Layoffs - Realigning
I read today on ERE.net which referenced the article on the Seattle Post Intelligencer about Jobster layoffs, new CFO and essentially the deflating of Jobster. First I’m not happy seeing people being layed off, companies going under and not succeeding as it’s very difficult to run a company get funding and grow, however in this case I believe it was only a matter of time. A couple of CEO’s in the community knew the day would come and it has.
Why did it happen? Let me help shed some light on this, this is my personal opinion on what I have learned from the past 3 years of owning my own company and building it from scratch without any funding.
• Money everywhere.
Jobster isn’t that different from every company from the dot com era, get money, spend it fast. From my understanding they have 145 employees new office space and I can’t remember the last time I didn’t see any jobster marketing.
• You played now pay.
Anytime a venture capitalist (some know them as vulture capitalist) give you money it comes at a very high price. This price includes 3x the amount back they gave you, they run the show and they don’t take no for an answer. Even though it’s your business, your background, they run the show and run it for all it’s worth.
• Buy don’t build
With the amount of money and funding that Jobster received they really should have been on a buying not building spree. There are plenty of companies in the space that have great technology, people, customers and more importantly revenues. New website, and product development takes time, let me take that back it takes more time than you initially thought it would take.
• Stay focused
Companies start out with a great idea and then as they grow get diluted with partners, partnerships, new products, tasks, hiring, management and the list goes on and on. Jobster launched with one product and when that didn’t sell they then changed their stripes, again, and again and again. If your potential customers can’t tell who you are what you do and how you do it then how do you grow? (Guilty as charged)
• Don’t Hire Fast
We are growing and that’s a good thing, but don’t forget that old adage “growing pains” it’s a good problem to have but let me remind you of this. For every person hired it takes one more person to train that person and to do a knowledge transfer for them to be efficient and contribute to the company. Meanwhile that first person has to still complete their job so this is a very delicate balance.
Hopefully jobster is able to realign, get more customers and be profitable by 07. Hind site is 20/20 I wish them all the best.