Letters

Readers react to articles from the August issue of Inc., including Dr. Steven Berglas's "Liar, Liar, Pants on Fire" and Edward O. Welles' "Burning Down the House."

Readers said "amen" to Dr. Steven Berglas's take on the lack of integrity among today's leaders. Buying cars on-line, getting seasoned help, and starting up on a shoestring also seemed to pique readers' interest, as will, we believe, an update on Smug magazine.

The Anti-liar's Club

Many readers applauded Dr. Steven Berglas's August column, " Liar, Liar, Pants on Fire," which asserted that the behavior of leaders--including CEOs and even President Clinton--is directly reflected by the behavior of the people they lead. This CEO's comments were typical:

The article really spoke to me. On my office wall I have a sign posted that reads, "Success is not real unless it is accompanied by strong character." As the owner of a start-up company, my goal is to live up to it.

Jim Mullaney
CEO
Electronic Document Service
Fairfield, Ohio

One parent was equally effusive:

Kudos on a fine article. I especially loved the second-to-last line: "The CEO who lies and cheats...should remember this: the liar's punishment is not that he is not believed, but that he can believe no one else." That's truly a profound thought and something I plan to share with my daughter when it's time to teach her why lying and cheating aren't acceptable. I hope the "genius" Berglas describes reads Inc. and is smart enough to see himself in the column. Sadly, even if he does, old habits die hard, and he's not likely to change.

Mary Byers
Director of Communications
Illinois State Dental Society
Springfield, Ill.

On a Dime

One businessman found editor-in-chief George Gendron's observation in " No Pain, No Gain" (FYI, August)--that a lack of cash at start-up can actually make some businesses stronger--dead on.

I agree with Gendron that his friend is making a mistake by not bootstrapping his second venture. Having started four companies, I can vouch for the fact that my businesses failed when I had the benefit of money and resources. With bootstrapping on less than $10,000, I made two businesses successful within five years. Mind you, after two failures, I'm more humble and patient. Humility (usually the result of failure) and persistence are the first two requisites to making a business go.

Roy L. Manns
President
Polyfiltronics
Rockland, Mass.

Pete's Wicked Sale

In " Burning Down the House" (August), Edward O. Welles introduced readers to Pete Ellis, whose Auto-By-Tel on-line service promises to revolutionize car purchasing. Readers welcomed the change.

Welles's article points out the obvious to any auto dealer willing to listen. Unfortunately, too many of them can't see what has been clear for years. Whenever you have a potential customer who willingly pays a middleman a fee to avoid the pain of shopping in your store, you should know you have a problem. The rise of auto brokers, along with the acceptance of true fixed-price auto dealers, should have been a clear warning to even the most intransigent dealer. The Internet is making it easier and more economical for the new middlemen to remove the pain of this shopping experience.

Mitchell Gooze
Partner
The OMT Group
Santa Clara, Calif.

Money Goes Places

In response to Mike Hofman's " Desperation Capitalism" (August), one reader wrote this of the companies in our bootstrappers' hall of fame, which listed well-known companies started for less than $10,000:

Your article would have been more informative and realistic had there been a comparison chart indicating the value of that start-up money in today's dollars. What would be the increase in the purchasing power of, say, Roadway Express's $2,400 in 1930, or the Clorox Co.'s $500 in 1913, or even Apple Computer's $1,350 in 1976?

Paul S. Schueller
President
Paul Schueller International Inc.
Spring Valley, N.Y.

Mike Hofman responds: Schueller's point is valid. In 1997 dollars Roadway Express's $2,400 in 1930 would be worth $22,922.42. Clorox Co.'s $500 in 1913 would be worth $8,055.65. And Apple's $1,350 in 1976 would be worth $3,476.52. Of the others mentioned: Lillian Vernon's $2,000 in 1951 would be worth $11,995.80; her $495 advertisement would cost $2,968.96. The Limited's $5,000 in 1963 would be worth $23,292. Gateway 2000's $10,000 in 1985 would be worth $14,386. And the $900 Domino's had in 1960 would be worth $4,367.79.