Entrepreneurs
The Key to Success
Brian Fox
Jami Dial
Stephen Sukanek
Overview
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Introduction
Robert Beyster – Brian
Jeff Bezos – Jami
Tim Hufker – Steve
Discussion/Conclusion
Why should I start my own
company?
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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 : 1 and 2
See Attached
Risks of being an IT
Entrepreneur
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~15% of all
computer-industry
businesses fail…
EACH YEAR
17,530 computerindustry business
failures in FY2000
References: 3 and 4
What Makes a Successful
Entrepreneur?
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Patience
Charisma
Thrift
Flexibility
Organization
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Good Judgment
Decisiveness
Supportive Family
Passion
Luck
References: 1, 5, 6, and 7
Case Studies
Science Applications
International Corp. (SAIC)
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”
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Forbes; December 01, 1997
SAIC’s Financial
Accomplishments
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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
www.saic.com
Dr. Robert Beyster
Founder & CEO
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Workaholic
Nuclear Physicist
Shy, soft spoken
Cares little about his
appearance
Runs four miles a day…
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Forbes; December 01, 1997
Often conducts
business during his
daily run!
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
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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
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Felt the need to “take charge of his destiny”
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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
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“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.”
Tehabi Books; "SAIC: The First
Thirty Years"
Dr. Robert Beyster’s Vision
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NSI – Network Solutions, Inc.
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Purchased for $5 million
Sold for $17 billion
http://issaic.saic.com
Final Thought
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“I was not sure the company would
amount to anything, but if it did, I
wanted to share it…”
Dr. Robert Beyster
Tehabi Books; "SAIC: The First
Thirty Years"
Amazon.com
Amazon.com
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Internet Retailer
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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
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Providing outsource to e-business
References: 11, 13 and 20
Amazon’s Financial
Accomplishments
Net Loss (in thousands)
2002
$ (149,132)
2001
$ (567,277)
2000
$(1,411,273)
Stock
Price
AMZN
www.bigcharts.com
Jeff Bezos
Founder & CEO
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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
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www.time.com
www.canoe.ca/CNEWS
Jeff Bezos’ Vitae
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Childhood
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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
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Work Experience
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1986-1988 FITEL
1988-1990 Banker’s Trust Company
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Company’s youngest VP
1990-1994 D.E. Shaw and Co.
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Company’s youngest Senior VP
www.time.com
Jeff Bezos’ Vision
1994 discovered information stating the
internet was growing at 2300% per year
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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 ecommerce destination as well.
www.time.com
Dealerscope: Philadelphia;
January 2003
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
Business Week; New York
May 15, 2000
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:
Centrics’ Financial
Accomplishments
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Been in business for 3 full months!
Revenue
$412,800
Profits:
$89,500
1/1/03-4/11/03
Phone Interview with Tim Hufker,
April 11, 2003
Tim Hufker
Founder & CEO
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St. Louis Business
Journal 2003 class
of 40 Under 40
Published in the
Journal of Product
Innovation
Management and in
CIO Magazine.
www.centrics.com/leadership.asp
Tim Hufker’s Vitae
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Education
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1987
1992
UM-Rolla
UM-St. Louis
BS-ME
MBA
Employment
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1987
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1994
Hired by CPI Corporation
Design studio and lab equipment
Renovated 2 labs, designed another
Promoted to Director of Engineering
Designed digital preview system
Interview with Tim Hufker, April 1,
2003
Tim Hufker’s Vitae
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Employment
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1995
2000
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-
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Still had CIO duties
Manufacturing
Real Estate
2001
-
Centrics, Inc. created
Tim named CEO in addition to other hats
2002
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Promoted to CIO
Promoted to Senior Exec VP
CPI closes Centrics, Inc.
Tim creates Centrics, LLC.
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vitae
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Personal
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Married, 2 sets of twins
“Not a born leader”
“Not a born entrepreneur”
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vision
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Customer Base – Retailers who:
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Offer Custom Products
Looking for Efficiency in Process
Desire Multi-Channel Sales
The Business Plan
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Develop Partnerships with “Big Fish”
Create Customizable Templates
Sell Templates to “Smaller Fish”
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vision
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Out/Net sourcing non-core functions
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Manufacturing
Web hosting
Legal
Accounting
Graphic art
Bought accounting/HR software for
$400
Interview with Tim Hufker, April 1, 2003
Tim Hufker’s Vision
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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
tie
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Pa or tiv s
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Characteristics of Case
Studies
Beyster
Bezos
Hufker
Discussion
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Patience
Charisma
Thrift
Flexibility
Organization

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


Good Judgment
Decisiveness
Supportive Family
Passion
Luck
tie
Ch nce
ar
Th ism a
rift
Fle
xi b
Or ility
ga
Go niza
od tion
De Jud
cis ge
Su iven men
pp
es
t
o
s
Pa r tiv
eF
ss
am
Lu ion
ily
ck
Pa
Characteristics of Case
Studies
Beyster
Bezos
Hufker
X
X
X
X
X
X
X
X
X
X
X
X
X
?
X
X
X
X
X
X
X
X
X
X
?
?
Test your knowledge
An entrepreneur is most commonly the __________
child in the family.
A.
B.
C.
D.
Oldest
Middle
Youngest
Doesn't matter
Next 10 pages taken from
Mancuso, Joseph A. “Test Your Aptitude for Entrepreneurship”,
www.startupjournal.com/howto/soundadvice/20030317-mancuso.html, viewed 4/11/03
Test your knowledge
Usually, an individual's entrepreneurial tendency
first appears at which of these stages?
A.
B.
C.
D.
E.
teens
twenties
thirties
forties
fifties
Test your knowledge
The only necessary and sufficient ingredient for
starting a business is:
A.
B.
C.
D.
Money
A customer
A product
An idea
Test your knowledge
An entrepreneur's primary motivation for starting
his own business is:
A.
B.
C.
D.
To make money
Because he can't work for anyone else
To be famous
As an outlet for unused energy
Test your knowledge
An entrepreneur moves which of these items
from business to business:
A.
B.
C.
D.
Desk
Chair
All office furniture
None of these items
Test your knowledge
To be successful in an entrepreneurial venture,
you need an overabundance of:
A.
B.
C.
D.
Money
Luck
Hard work
Good ideas
Test your knowledge
Entrepreneurs and venture capitalists:
A.
B.
C.
Are cordial friends
Are the best of friends
Are in secret conflict
Test your knowledge
Entrepreneurs are:
A.
B.
C.
D.
High risk-takers (big gamblers)
Moderate risk-takers (realistic gamblers)
Small risk-takers (take few chances)
Doesn't matter
Test your knowledge
Entrepreneurs are best as:
A.
B.
C.
D.
Venture capitalists
Planners
Doers
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
References
1. 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, 5415
4. 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 4/11/03
10. Phone interview with Tim Hufker, 4/11/03
References
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
www.time.com
www.bigcharts.com
www.justpeople.com
www.canoe.ca/CNEWS
Forbes; December 01, 1997
www.saic.com
http://issaic.saic.com
SAIC: The First Thirty Years
Dealerscope; Philadelphia; January 2004
www.askmen.com