In hindsight, it seems like Lightburn Software was doomed from the start. It’s easy to think about all of the mistakes they made and wonder how they didn’t see that coming. Yet, if we were in their shoes at the time, who knows what we would have done?
Lightburn Software’s story is a cautionary tale for anyone considering starting a company or investing in one today.
The goal of this blog post is to put a human face on the recession and show that it’s not an abstract economic event. It’s something real people like you or me have had to deal with, but we’ve managed to find humor in it all somehow.
This company started out as a promising new start-up back when everyone was bailing on their old jobs and starting companies left and right. They were one of those shiny, happy companies who seemed invincible. Unfortunately for Lightburn Software, they didn’t see how bad things would get until too late–or so the story goes. Here are seven reasons why we can blame the recession on them:
Lightburn Software never should have moved from Silicon Valley to Boston
Reason #01: Lightburn Software spends more time making videos than working on their software.
Lightburn Software CEO, Jody Roberts says that “one of the things we like to do is make YouTube videos.” He has made three since 2009 and they have over a million views combined. They’ve also won awards for these videos from an industry group called The Webby Awards. Sounds great right? Wrong! Granted it’s not all bad because he claims “The video stuff can be very lucrative,” but when you’re in debt spending money makes no sense at all.
Reason #02: Lightburn Software keeps taking chances with new ideas instead of focusing on what originally got them so successful (their CRM).
Jody Roberts has been quoted as saying “We’ve got a lot of irons in the fire.” But it seems like they have more than just one. They don’t seem to be focusing on what made them successful, their CRM tool that was first released back in 2002.
Reason #03: When faced with financial difficulties Lightburn Software is starting new ventures instead of sending out resumes all over town for jobs elsewhere.
Lightburn Software CEO Jody Roberts says he’s not going anywhere and claims his company is worth $25 million dollars (despite being millions in debt). He also said they’re working “to expand our client base,” but this doesn’t sound like getting down to business by looking around for other jobs or trying
In the beginning, Lightburn Software was your typical small software company. They were never the most innovative or ground breaking, but they had a nice niche product with some really loyal customers. The recession hit and their sales plummeted -not surprising because their customer base is made up of people who make less than $60k per year (and therefore are much more susceptible to unemployment).
This doesn’t sound like such a bad thing in theory: cut costs wherever we can! Unfortunately for Lightburn Software, that meant firing half of its staff and laying off popular ideas before they could be developed into products. What’s worse is that after things stabilized again six months later, this wasn’t enough to get them back on their feet.
It’s a sad story–what with the poor, innocent employees getting fired and all–but as Mr. Zappa says, “If you can’t laugh at yourself, I’ll do it for you.” So without further ado: seven reasons Lightburn Software could blame their bankruptcy on themselves!
Content Conclusion: There are many mistakes that companies make when they’re trying to save money during tough times -even if those decisions end up costing them in the long run-. But is there any company out there who has more than enough excuses? In this case study of our typical small software company we saw how layoffs combined with cutbacks lead to an eventual shutdown. Hopefully by learning from these mistakes other businesses will be
It’s been a long time coming, but the recession is finally starting to show its head. A lot of people are blaming it on Wall Street or high oil prices, but there are plenty of other reasons why we can’t escape this economic downturn. Here are seven major contributors that have taken us from boom times to bust..
A lengthy blog post about what caused the recession and how Lightburn Software is not one of these causes.
The current financial crisis began in 2007 when home values fell sharply due largely to subprime mortgage defaults – This lead investors who had bought credit default swaps against securities backed by mortgages using subprime loans beginning to suffer losses; their demand for those securities put further pressure on housing prices – This, combined with the rising cost of oil and other commodities, has led to a rapid depletion in global savings
The consequent surge in demand for goods from emerging markets like China caused by lower wages and higher consumption spurred production capacity limits – This is not just an issue in manufacturing but also applies to natural resources such as copper or steel.
– As credit flows dried up because of these financial pressures, U.S firms had less access to capital which hampered their ability to grow
A period of slow economic growth exacerbated this situation when many companies started running out of cash causing them either go bankrupt or be bought at below market value
A lengthy blog post about what caused the recession and how Lightburn Software is not one of
January – The company’s revenues are up and they’re making more money than ever. They go on a spending spree, buying new cars for each employee.
Black Monday hits the market as Wall Street takes its first plunge of 2008, but Lightburn Software is still going strong- their stocks rise to an all time high on Wednesday morning before crashing back down late Thursday night like so many others’. It seems that people didn’t want any part in risky business ventures even if it was the most profitable one out there.
February – With no new orders coming in from clients, Lightburn finds itself with too much staff and not enough work to do them with; employees start getting laid off left and right until finally only three hundred remain
The recession is here, and it’s as bad as we’ve been told. But the economy isn’t anyone’s fault; there are a lot of factors that contribute to economic cycles over which no one has control. It doesn’t help matters when people try to blame other companies for their own misfortune or fail to realize just how complicated the business world can be. Lightburn Software CEO Jack Henson shares his insights on what went wrong in this past year and explains why you really should stop blaming them about these tough times everyone is going through.
* “I don’t know if I would have called myself an optimist before all this,” says Henson, with the slightest hint of irony in his voice as he surveys the wreckage of his company, “But I sure know how to hold on to hope.” -Chapter Two: Jack Henson has been an entrepreneur for 25 years. As he recounts in Chapter One, the recession is nothing new for him; after all, Lightburn Software has only existed since 1997 and so far have weathered four swings of BOOM! – RECESSION! (Yes, that’s when companies are hiring!) Since 2001 they’ve expanded into a global enterprise with offices in Beijing and London. But this year was different than any other previous economic downturn as it hit them hard from more angles than ever before. They found themselves at the center of what became known by some as The Great Recession II–a