Entrepreneurs The Key to Success
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Transcript of Entrepreneurs The Key to Success
Entrepreneurs The Key to Success
Brian FoxJami Dial
Stephen Sukanek
Overview Introduction Robert Beyster – Brian Jeff Bezos – Jami Tim Hufker – Steve Discussion/Conclusion
References : 1 and 2 See Attached
Why should I start my own company? You are your own boss. Your work directly benefits you. Not limited by corporate structure. Endless variety and challenges.
“Don’t be encumbered by history. Go out and do something wonderful.” -Robert Noyce, cofounder of Intel
References: 3 and 4
Risks of being an IT Entrepreneur ~15% of all
computer-industry businesses fail… EACH YEAR
17,530 computer-industry business failures in FY2000
References: 1, 5, 6, and 7
What Makes a Successful Entrepreneur? Patience Charisma Thrift Flexibility Organization
Good Judgment Decisiveness Supportive Family Passion Luck
Case Studies
Science Applications International Corp. (SAIC)
Forbes; December 01, 1997
Science Applications International Corp. (SAIC) Founded in 1969 Headquartered in San Diego, CA Largest employee owned firm in the U.S. 41st largest privately owned co. in U.S. Specialty: Systems Integration Leader in employee compensation &
motivation
“We turn employees into stakeholders”
www.saic.com
SAIC’s Financial Accomplishments 30 yrs of growth in
revenues, profits and employees
6.1 Billion in Revenues 19 Million in Net Income 95% of Employees are
owners 6000 Active Contracts
Forbes; December 01, 1997
Dr. Robert Beyster Founder & CEO
Workaholic Nuclear Physicist Shy, soft spoken Cares little about his
appearance Runs four miles a day…
Often conducts business during his daily run!
Tehabi Books; "SAIC: The First Thirty Years"
Dr. Robert Beyster’s Vitae
“I’m not the brilliant flash of inspiration type entrepreneur…I’m more of a persistent, workaholic type.”
Father was an engineer for General Motors Believed his destiny was to design for GM
World War II changed all that… Educated at University of Michigan Worked for Los Alamos and General Atomics
Tehabi Books; "SAIC: The First Thirty Years"
Dr. Robert Beyster’s Vitae Felt the need to “take charge of his destiny”
Became an entrepreneur at age 45 by accident Started SAIC without any “grandiose plan for the
future” Started SAIC to be “a good place where I
could work and maybe a few people could join me.”
First Contract for $70,000 with Defense Atomic Support Agency
Tehabi Books; "SAIC: The First Thirty Years"
Dr. Robert Beyster’s Vision “Hire very smart people” “Give them the freedom to build
business in areas they are passionate about…”
“Reward them for their contributions with ownership of the company.”
“…turn employees into stakeholders.”
http://issaic.saic.com
Dr. Robert Beyster’s Vision NSI – Network Solutions, Inc.
Purchased for $5 million Sold for $17 billion
Tehabi Books; "SAIC: The First Thirty Years"
Final Thought “I was not sure the company would
amount to anything, but if it did, I wanted to share it…”
Dr. Robert Beyster
Amazon.com
References: 11, 13 and 20
Amazon.com Internet Retailer
Went public in 1997 selling at $18 a share Initially sold books Expanded into various forms of media Expanded further into multiple product
lines Starting to refocus
Providing outsource to e-business
www.bigcharts.com
Amazon’s Financial AccomplishmentsNet Loss (in thousands)
2002 2001 2000$ (149,132) $ (567,277) $(1,411,273)
Stock PriceAMZN
www.time.com www.canoe.ca/CNEWS
Jeff BezosFounder & CEO
Born January 14, 1964 High School Valedictorian 1986 graduate of Princeton in
Electrical Engineering and Computer Science
Summa cum Laude Phi Beta Kappa
1999- Time Person of the Year 147th richest American
www.time.com
Jeff Bezos’ Vitae Childhood
Grew up in Coffeyville, KS Spent summers at Grandfather’s ranch in
Cotulla, TX Age 14, dreamed of becoming an
astronaut or physicist Never tried drugs or alcohol Worked at McDonald’s while in High
School
www.time.com
Jeff Bezos’ Vitae Work Experience
1986-1988 FITEL 1988-1990 Banker’s Trust Company
Company’s youngest VP 1990-1994 D.E. Shaw and Co.
Company’s youngest Senior VP
www.time.com Dealerscope: Philadelphia; January 2003
Jeff Bezos’ Vision
1994 discovered information stating the internet was growing at 2300% per year Knew there was business opportunity Left his 7 figure job and headed west
Bezos wants Amazon.com to be not just a bookstore but a multifaceted e-commerce destination as well.
Business Week; New York May 15, 2000
Final Thought“We’ve been called Amazon.bomb, Amazon.toast and
Amazon.org—because we don’t make any profit. We’re used to skepticism. In fact, it’s good for us. If everybody agreed that our strategy was a winner, everybody would do it, and it would be hard to make excessive returns.”
Jeff Bezos
Centrics, LLC
Centrics, LLC
“Centrics provides professional services and innovative technical solutions that enable retailers to improve their customer experience.”
-Centrics Mission Statement
Current Customers:
Phone Interview with Tim Hufker, April 11, 2003
Centrics’ Financial Accomplishments Been in business for 3 full months! Revenue
$412,800 Profits:
$89,500
1/1/03-4/11/03
www.centrics.com/leadership.asp
Tim Hufker Founder & CEO
St. Louis Business Journal 2003 class of 40 Under 40
Published in the Journal of Product Innovation Management and in CIO Magazine.
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vitae Education
1987 UM-Rolla BS-ME 1992 UM-St. Louis MBA
Employment 1987 Hired by CPI Corporation
Design studio and lab equipmentRenovated 2 labs, designed another
1994 Promoted to Director of EngineeringDesigned digital preview system
Tim Hufker’s Vitae Employment
1995 Promoted to CIO 2000 Promoted to Senior Exec VP
Still had CIO duties Manufacturing Real Estate
- 2001 Centrics, Inc. created- Tim named CEO in addition to other hats
- 2002 CPI closes Centrics, Inc.- Tim creates Centrics, LLC.
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vitae Personal
Married, 2 sets of twins “Not a born leader” “Not a born entrepreneur”
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vision Customer Base – Retailers who:
Offer Custom Products Looking for Efficiency in Process Desire Multi-Channel Sales
The Business Plan Develop Partnerships with “Big Fish” Create Customizable Templates Sell Templates to “Smaller Fish”
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vision Out/Net sourcing non-core functions
Manufacturing Web hosting Legal Accounting Graphic art
Bought accounting/HR software for $400
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vision New sources of revenue Manage growth & deliver quality Keep the company private Moderate growth, 10% profit margin
Interview with Tim Hufker, April 1, 2003
Final Thought
“Long term success in a company you feel good about is more important than making a bunch of money”
–Tim Hufker
Interview with Tim Hufker, April 1, 2003
Characteristics of Case Studies
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Beyster Bezos Hufker
Discussion Patience Charisma Thrift Flexibility Organization
Good Judgment Decisiveness Supportive Family Passion Luck
Characteristics of Case Studies
Pat
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Beyster X X X X X X X X XBezos X X X X X X ?Hufker X X X X X ? X X X ?
Test your knowledgeAn entrepreneur is most commonly the __________ child in the family.
A.OldestB.Middle C.Youngest D.Doesn't matter
Next 10 pages taken fromMancuso, Joseph A. “Test Your Aptitude for Entrepreneurship”,
www.startupjournal.com/howto/soundadvice/20030317-mancuso.html, viewed 4/11/03
Test your knowledgeUsually, an individual's entrepreneurial tendency
first appears at which of these stages?
A. teens B. twenties C. thirties D. forties E. fifties
The only necessary and sufficient ingredient for starting a business is:
A. Money B. A customer C. A product D. An idea
Test your knowledge
An entrepreneur's primary motivation for starting his own business is:
A. To make money B. Because he can't work for anyone else C. To be famous D. As an outlet for unused energy
Test your knowledge
An entrepreneur moves which of these items from business to business:
A. Desk B. Chair C. All office furniture D. None of these items
Test your knowledge
To be successful in an entrepreneurial venture, you need an overabundance of:
A. Money B. Luck C. Hard work D. Good ideas
Test your knowledge
Entrepreneurs and venture capitalists:
A. Are cordial friends B. Are the best of friends C. Are in secret conflict
Test your knowledge
Entrepreneurs are:
A. High risk-takers (big gamblers) B. Moderate risk-takers (realistic gamblers) C. Small risk-takers (take few chances) D. Doesn't matter
Test your knowledge
Entrepreneurs are best as:
A. Venture capitalists B. Planners C. Doers D. Managers
Test your knowledge
A successful entrepreneur relies on which of these groups for critical management advice:
A. Internal management team
B. External management professionals
C. Financial sources
D. No one
Test your knowledge
References1. http://www.sba.gov/starting/ask.html, viewed 4/11/03.2. Tedlow, Richard S. “What Titans Can Teach Us,” Harvard Business Review,
December 2001, pp.70-79. 3. http://www.census.gov/csd/susb/susb2.htm/us4dn99_00.xls data for the
following NAIC (North American Industry Classification) codes: 334, 514, 54154. http://www.census.gov/csd/susb/susb2.htm/us4dn98_99.xls, data for the
following NAIC (North American Industry Classification) codes: 334, 514, 5415 5. Kuemmerle, Walter. “A Test for the Fainthearted,” Harvard Business Review,
May 2002, pp. 122-127.6. Magretta, Joan. “Why Business Models Matter,” Harvard Business Review, May
2002, pp.86-92.7. Mancuso, Joseph A. “Test Your Aptitude for Entrepreneurship”,
www.startupjournal.com/howto/soundadvice/20030317-mancuso.html, viewed 4/11/03
8. Interview with Tim Hufker, 4/1/03 9. http://www.centrics.com/leadership.asp, viewed 4/11/0310. Phone interview with Tim Hufker, 4/11/03
References11. www.time.com
12. www.bigcharts.com
13. www.justpeople.com
14. www.canoe.ca/CNEWS
15. Forbes; December 01, 1997
16. www.saic.com
17. http://issaic.saic.com
18. SAIC: The First Thirty Years
19. Dealerscope; Philadelphia; January 2004
20. www.askmen.com