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When the Solution Turns Out to Be the Problem

Tokyo-based Internet Access Center, launched by Jay Smith and Brad Bartz, flew 
high and fell fast. Many of its woes stemmed directly from strategies that 
initially proved successful.

In the beginning                        In the end

BARTER Short of capital,                ...but that left him in a
Bartz traded services for               perennial cash-flow crisis
needed equipment...

HIRING Trusted friends and              ...but later, he came to
relatives shared his enthusiasm         distrust their abilities
for launching the company...

DIVERSIFICATION Brimming                ...but with each new venture,
with ideas, Bartz branched into         the company lost focus
an array of promising services...

ATTRACTING CASH A sudden                ...but it also let him spend
infusion of venture capital allowed     with abandon, ignoring
Bartz to expand aggressively...         financial controls

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Updated Aug. 21, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.
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