Dots Dashed

Nirav Tolia

Cofounder and CEO
Epinions.com
Brisbane, California

At Yahoo!, I learned to focus not on the competition or other externalities, but on creating the best user experience possible.

Since that same focus defines the culture at Epinions, we kept pretty sane when the tech market tumbled last year. I couldn't even tell you what makes Epinions different from other companies, because I don't know what other companies are doing. I know only what Epinions is doing.

Of course, there are things that I wish we'd done differently from the beginning. We had an unhealthy obsession with speed. We launched in about 16 weeks, and in the race to market, we took shortcuts. We probably hired too quickly and didn't put enough of a premium on experience. When you're young, you think, "I'm smart. I can figure it out." But you can't. Now I see that both intellect and experience are very important.

When you're obsessed with speed, you don't develop robust plans. When we started out, our strategy was our execution. But we learned that being the first mover doesn't matter. You have to be the first mover who does it right. This last year has made it clear that you can't take success for granted. Nothing's guaranteed. You learn that lesson the hard way every single day.

Nirav Tolia (nirav@epinions-inc.com) worked in Yahoo!'s marketing group and represented the company on CNN and MSNBC before founding Epinions.com in May 1999. He is also founder and president of Round Zero, a nonprofit organization that brings Silicon Valley professionals together to discuss high-tech issues. Epinions.com, a company of about 90 employees, provides product and services information to consumers.

Laura Rippy

CEO
Handango
Hurst, Texas

Tenacity is a core value at our company. Maybe that's just because I've run a marathon, and I'm a lousy sprinter. But rather than being driven by a particular funding event like an IPO, I've been really focused on building a long-term business. I think that's a business fundamental that many dotcoms who got crushed last year didn't follow.

For example, we're huge believers in $38 folding tables from Wal-Mart. If you're working on a $38 table, that frugality tends to pervade every decision you make. That's a lot different from some of the flashier dotcoms that bought billboards on buses. We're focused on making every dollar count.

One positive that we've learned from the dotcom era is the importance of partnerships -- and of choosing your partners well. In a small business, the most important decisions you make are the things you decide not to do. So find what you're good at, and recognize where your weaknesses are. Then bring on an appropriate partner who can fill in the gap.

We're one of the lucky ones. The market environment in the last year has actually benefited us. We're in a hot, growing space: handhelds, software, and wireless. We're a magnet for talent during an all-out talent war. And we know that in the shakeout for resources, it's the best business models, the best teams, and the most tightly focused execution plans that will attract the capital, the partners, and the customers long term. That's what we're counting on.

Laura Rippy (laura@handango.com) spent six years at Microsoft, where she worked on the e-commerce sites MSN HomeAdvisor.com and MSN Sidewalk.com. Launched in 1999, Handango is one of the world's largest Internet marketplaces for handheld and wireless applications.

Bill Malloy

CEO
WorldStream Communications Inc.
Bellevue, Washington

I joined Peapod after 11 years at AT&T because I wanted to do more than just sit on the sidelines of the Internet revolution. I lasted about 6 months.

Even before my dotcom stint, the Internet world had gone completely wacko. Most businesses were nothing more than a series of exit strategies on the way up. And then there was Peapod -- customer focused and bottom-line oriented. But Wall Street wasn't convinced. Pressured by investors to move online, Peapod morphed into an e-grocer. When competitors built distribution warehouses, Peapod added distribution.

Walking in, I faced a dilemma: The numbers looked better on the original model. I didn't know if I should return to it or cut to the distribution model that the capital markets would support. I listened to investors. But just because we acquiesce to Wall Street doesn't mean that the business model will work. We compromised our values for fickle opinions. My lesson? Don't let Wall Street whipsaw you around. Tune out the noise and focus on your core business.

I resigned last March from my spin in cyberspace because of a simple realization: I didn't belong in an online grocery play, because I didn't belong in the grocery industry. You don't just have to believe in the business you're in -- you absolutely have to love it.

I've reaffirmed what I already knew: Honor your value system, because the deeply personal elements make the work satisfying. When it doesn't feel right, there's a reason.

Bill Malloy (malloy@worldstream.com)was president and CEO of Peapod Inc., the Chicago-based online grocer, from October 1999 until March 2000. Before joining Peapod, he was an executive vice president at McCaw Cellular Communications/AT&T Wireless Services. WorldStream Communications Inc., an interactive Web-casting technology company, was founded in 1997.