Reading Reflection Week #13

What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? 

n  The biggest surprise to me what the amount of money Facebook raised. And as it turns out, there is concern over the overpriced initial offering. Moreover, the fact that Facebook’s stock price was introduced at over 100 times the historical earnings versus Apple’s stock price – which in itself was introduced at over 14 times the historical earning, is shocking. Nonetheless, regardless of the jumpstart, since opening day, the eight-year-old company has lost approximately $25 billion dollars.

Identify at least one part of the reading that was confusing to you.

n  In response to this question I almost wrote - “All of it,” but that isn’t true. There is a reason people hire business analyst. I could say that valuation and analyzing procedures of a business would be confusing, but that is only in this context. If we were working with our own ventures, walking through the steps of what might happen, it would be clearer.

If you were able to ask two questions to the author, what would you ask? Why?

1.    The only question I could come up with based on this chapter, would be how to overcome the lack of management depth in a new venture. Some people are wanting to jump into their own venture, but don’t have the depth or skill that management needs in order to succeed. However, small ventures can’t always afford a manager that might have the needed depth and skills, knowledge and abilities. How would one fill those gaps? The reason is clear – if you want to succeed, and if this is an area that could be a shortcoming, we would want to fill the gap.

Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

n  Of course, I cannot disagree with something for which I am not an expert (or at least not without making myself look ignorant).  I cannot tell you if what he is saying is correct, albeit, it appears to me that most of what he has described in this chapter is on target with what needs to be analyzed for a successful venture.