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

Pat

ienc

eC

haris

ma

Thrif

tFl

exib

ility

Org

aniz

atio

nG

ood

Judg

emen

t

Dec

isiv

enes

sS

uppo

rtive

Fam

ily

Pas

sion

Luck

Beyster Bezos Hufker

Discussion Patience Charisma Thrift Flexibility Organization

Good Judgment Decisiveness Supportive Family Passion Luck

Characteristics of Case Studies

Pat

ienc

eC

haris

ma

Thrif

tFl

exib

ility

Org

aniz

atio

nG

ood

Judg

emen

t

Dec

isiv

enes

sS

uppo

rtive

Fam

ily

Pas

sion

Luck

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