It starts with an idea
1
How to start your
own IT company
What does it take to be an
entrepreneur?
Todd
2
Dorton
Nisha Matani
Dhiraj Kumar
Objective
To define and show the importance
of entrepreneurship, highlight the
best practices for start-ups and
showcase desirable attributes of an
entrepreneur
3
Agenda
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Introduction
Entrepreneurship
Richard Branson
N R Narayan Murthy
Ingvar Kamprad
Comparison & Best Practices
Conclusion
Questions
4
Mind blocks
My own company????
Your Mind Blocks
1.
2.
3.
4.

List what are the things
which come to your mind
when you put yourself in
place of Doug

We will try to address a
few of them through our
presentation.
“The very idea of entrepreneurship not only conjures up thoughts about starting
up businesses and building them, but also the more frightening prospect of
taking risks and failing. It’s the last part that puts so many people off [from]
taking a leap into the unknown and working for themselves.” –Richard Branson
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006
5
Doug Bartlett
6
Some Successful Business Ideas
Business Name
The Idea
Silent technologies
To time LSAT Questions
Collageboxes
College shipping, storage & rental
TerraCycle
Trash to money
Platinum Performance
Supplements for human & animals both
CIK Enterprise
Marketing for rental companies
Digium
This tech support company got started while
looking for phone solution.
Inc.com coolest little startups
7
What is an Entrepreneur?
A person who undertakes and operates a new
enterprise or venture and assumes some
accountability for the inherent risks. In the
context of the creation of for-profit enterprises,
entrepreneur is often synonymous with
founder.
http://en.wikipedia.org/wiki/entrepreneurship viewed on 2 Dec
2006
8
Startup Companies


A startup is a company with limited operating history
Moves out of this phase when it passes various
milestones


Funded in 2 major ways



Becoming profitable, being publicly traded, being
acquired/merging
Venture capital
Angel investor
Most startups fail???
“Angel Investor”. Wikipedia.org Dec. 2006. 2 Dec 2006 .http://en.wikipedia.org/wiki/Angel_investors
“Venture Capital”. Wikipedia.org Dec. 2006. 2 Dec 2006 .http://en.wikipedia.org/wiki/Venture Capital
“Startup Company”. Wikipedia.org Dec. 2006. 2 Dec 2006 .http://en.wikipedia.org/wiki/Startup Company
9
Statistics on small
businesses
• Small
firms represent 99.7% of all employer firms
• Employ half of all private sector employees
• Employ 41% of all high tech workers
• Generated 60 to 70% of net new jobs over the last decade
• Create 50% of non-farm private GDP
In 2005 there were approximately 25.8 million small
businesses in the
United States.
“Frequently Asked Questions.” SBA Office of Advocacy. June 2006. 26 Nov 2006. <www.sba.gov/advo/stats/sbfaq.pdf>
10
Top 10 Cities for
Entrepreneurs
Rank City
1
Phoenix-Mesa, AZ
2
Charlotte/Gastonia/Rock Hill, NC/SC
3
Raleigh/Durham/Chapel Hill, NC
4
Las Vegas, NV
5
Austin/San Marcos, TX
6
Washington/Baltimore, DC/MD
7
Memphis, TN
8
Nashville, TN
9
Norfolk/Virginia Beach/Newport News, VA/NC
10
San Antonio, TX
22
St. Louis, MO
Inc.com “hot cities”
11
Three Successful
Entrepreneurs
1.
2.
3.
Richard Branson
Narayan Murthy
Ingvar Kamprad
Top 2 European Brands to Have
an Impact on Consumer’s Lives
1.
2.
IKEA
Virgin
Deutschman, Alan, “The Gonzo Way of Branding” Fast Company, Issue 87, October 2004, p.91.
12
Richard
Branson
13
Richard Branson:
“Virgin”
Best known for the “Virgin” brand
 Born in 1950 in Shamley Green, Surrey
 Educated at Scaitliffe School & Stowe School

Dyslexia
 Captain of the football & cricket teams
 Had a generally curious spirit


By the age of 15, he had started 2 failed ventures

X-mas trees & raising budgerigars (parakeets)
http://en.wikipedia.org/wiki/Richard_Branson, viewed November 4, 2006
http://www.askmen.com/men/december99/6c_richard_branson.html, viewed November 4, 2006
http://www.virgin.com/aboutvirgin/allaboutvirgin/whosrichardbranson/default.asp, viewed November, 4 2006
14
Richard Branson:
Profile




Quit school at 16, set up Student Magazine
At 17, started a charity, The Student
Advisory Centre, to help young people
Awarded “knighthood” in December 1999
Today:





Has a net worth of over $5 billion
The #1 Admired Businessman in Britain
Is the 2nd choice amongst youth for Prime Minister
(after Tony Blair)
Lives in London/Oxfordshire
Married with 2 children
http://en.wikipedia.org/wiki/Richard_Branson, viewed November 4, 2006
http://www.askmen.com/men/december99/6c_richard_branson.html, viewed November 4, 2006
http://www.virgin.com/aboutvirgin/allaboutvirgin/whosrichardbranson/default.asp, viewed November 4, 2006
15
Virgin Group:
The Beginnings





Started by purchasing crates of “cut-out”
records from a discounter
Sold the records out of the trunk of his car
to London retail outlets
1970: Started a mail-order business selling
records under the name “Virgin”
 Sold records at a discounted price
compared to competitors
Opened a record shop on Oxford Street in
London
Built a recording studio with profits and a
loan from his aunt
http://en.wikipedia.org/wiki/Richard_Branson.html, viewed November 4, 2006
16
Virgin Group:
Company Profile

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Ranked 2nd among European brands that
have the greatest impact on consumers’ lives
(next to IKEA) *annual poll, thousands of consumers
350 companies worldwide
$8 billion annually in sales
25,000+ employees
10% of business in U.S.
“branded venture capital”
Involved in planes, trains, finance, soft
drinks, music, mobile phones, holidays, cars,
wine, publishing, bridal wear, etc
Hopkins, Michael S., “26 Most Fascinating Entrepreneurs” Inc. Magazine, http://www.inc.com/magazine/20050401/26-branson.html,
viewed November 15, 2006
Deutschman, Alan, “The Gonzo Way of Branding” Fast Company, Issue 87, October 2004, p.91.
http://www.virgin.com/aboutvirgin/allaboutvirgin/whatwereabout/default.asp, viewed November 4, 2006
17
Virgin Group:
“Through the Years”
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1970: Start of virgin mail-order
1971: 1st Virgin record shop opens
1973: Record Label launches
1984: Virgin Atlantic Airways is born
1991: Virgin Publishing is formed
1992: Virgin Records is sold to Thorn EMI
1994: Virgin Vodka & Cola launch
1995: Virgin Direct Personal Financial Services opens
1996: Virgin Trains launches
1999: Virgin Mobile launches
2002: Virgin Credit card is offered
2004: Virgin Galactic space tourism
http://www.virgin.com/aboutvirgin/allaboutvirgin/thewholestory/default.asp
18
Virgin Group:
“Elements of Success”

Constantly looking for opportunities


Base decisions on hard research & analysis



Offer something better, fresher, & more
valuable
Appropriate rewards vs. risks
Networking (friends, contacts,partners)
Branding

“If you get your face and name out
there enough, people will start to
recognize you.”
http://www.virgin.com/aboutvirgin/allaboutvirgin/thewholestory/default.asp, viewed November 4, 2006
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006
19
Virgin Group:
“Elements of Success”

Diversifying the company


Empowering talent


“Loyalty means a lot to me… I guess that’s why I prefer to promote
from within. People who join Virgin know that there are plenty of
opportunities to progress their career.”
Sense of community


“This enables you to have a contingency plan when the economy
is going through a rough patch.”
Shared ideas, values, interests, & goals
Management style

Minimal mgmt. layers, No bureaucracy, No
massive Global HQ, a small Board
http://www.virgin.com/aboutvirgin/allaboutvirgin/thewholestory/default.asp, viewed November 4, 2006
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006
20
Richard Branson:
Character Traits

Daring/Risk-taker


Adventurous



“BA Bonus”
Donates profit to research environmentally
friendly fuels
Green



Many record-breaking attempts
Selfless


“It is impossible to run a business without taking risks… I
have enjoyed all the challenges we have taken at Virgin, so
because I’m having fun at what I’m doing what I do, the risk
factor takes second place.”
Virgin Fuel
Global Warming
“Transformational Leader”
http://en.wikipedia.org/wiki/Richard_Branson, viewed November 4, 2006
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006
21
Narayan
Murthy
22
Narayan Murthy:
“Infosys Technologies”





Known for “Infosys Technologies”
Born in Mysore, India in 1946
Masters Degree from IIT Kanpur
Began his career in software in
Patni Computers
Founded Infosys in 1981
http://in.rediff.com/money/2006/jun/21murthy.html 2 Dec 2006
23
Infosys Technologies:
Company Profile








Founded by 7 software professionals
Led by N. R Narayan Murthy and Nandan Nilekani in
1981 (All members were former Patni Computers
employees)
Started with $250 borrowed from his wife
Revenue: $2.15 Billion
58,000 Employees
Market Capitalization: US $22 Billion
Slogan: “Powered by intellect, driven by values”
Growth Rate : 38% in last five years
a. Wikipedia(http://en.wikipedia.org/wiki/Infosys),Viewed on 10/20/2006
b. Infosys Website (www.infosys.com) viewed on 10/20/2006
24
What they thought in the
beginning






“ We never imagined we would come this far “.
“we were certain of one thing, and that is our value system”
“When we sat down in the bedroom of my apartment in 1981, we
discussed for four hours what our objective should be. Should it
be revenues, profits, market capitalization? “
“No, we said it should be none of those. “
“We will seek respect from every one of the stakeholders. My view
was if we sought respect we'd automatically do the right thing by
each of them. We'd satisfy our customers, be fair to our
employees, and follow the finest principles with respect to
investors, we would not violate laws, and, finally, we'd make a
difference to society. “
“And then, I said, automatically you'll get revenues and profits and
all that. “
a. Narayan Murthy's interview by BusinessWeek Senior writer Steve in New Your Jun 15th 2006
b. http://in.rediff.com/money/2006/jun/21murthy.htm on 10/20/2006
25
Infosys Techonologies:
“5 Elements of Success”
1. Openness to learn
-Openness to subordinate your ego to take
ideas from others
2. Meritocracy
-The best ideas are adopted and implemented
using data to arrive at the best decision
3. Speed
-Assuring you do things faster compared to
yesterday and last quarter
4. Imagination
-You continually bring better ideas and better
innovation to the table
5. Excellence in execution
-That is implementation of these great ideas
with a higher level of excellence today than
yesterday.
a. Narayan Murthy's interview by BusinessWeek Senior writer Steve in New Your Jun 15th 2006
b. http://in.rediff.com/money/2006/jun/21murthy.htm
26
Infosys Technologies:
“Success Factors”





Pioneer in business
practices
Longstanding client
relationship
End-to end solution
Global delivery model
Focus on people,
process & Technology
A cese study and presentation on Building Successful Software Companies in Developing countries, In Hawaii on May 1921,2004 (http://www.iipi.org/Conferences/Hawaii_SW_Conference/Nithya%20Presentation.pdf) viewed 4 Dec 2006
27
Murthy’s Stress on Leadership
& Learning




Infosys leadership Institute
98 member faculty ,65 Phd
160+ continuing education
courses
Individual training program for
all employees
http://in.rediff.com/money/2006/jun/21murthy.htm 4 Dec 2006
28
Ingvar
Kamprad
29
Ingvar Kamprad:
“IKEA”
•
•
•
Estimated net worth of $36
billion
Born in 1926 in Sweden
Raised on a farm called
Elamtaryd, near the village of
Agunnaryd.
Ingvar Kamprad. Wikipedia.org Nov. 2006. 8 Nov 2006.http://en.wikipedia.org/wiki/Ingvar_Kamprad
30
Ingvar Kamprad:
Profile
As a young boy he knew he wanted to be a businessman.
• Started by selling matches door to door
from his bicycle.
• Discovered that he could by matches very cheap in
Stockholm and sells them individually at a low price and
still make a profit.
•
He later expanded in selling fish, Christmas tree decorations,
seeds, ballpoint pens and pencils.
•
IKEA. “Timeline” IKEA. 8 Nov. 2006 <http://www.ikea.com/ms/en_us/about_ikea/full_story.html
31
IKEA:
The Beginnings
• IKEA was founded in 1943.
• He funded the business at the age of 17
from a gift from his father.
• IKEA name comes from his first to initials
and the first letter of his farm and the
first letter of his village.
IKEA. “Timeline” IKEA. 8 Nov. 2006 <http://www.ikea.com/ms/en_us/about_ikea/full_story.html
32
IKEA:
Through the Years
•IKEA originally sold picture frames, stocking, table
runners, wallets, watches and much more.
would sell anything that he could provide at low cost.
He
•1947 furniture was added to the product line
•1951 the first catalogue was printed and all lines
except for low cost furniture were dropped.
•1953 furniture showroom opened
IKEA. “Timeline” IKEA. 8 Nov. 2006 <http://www.ikea.com/ms/en_us/about_ikea/full_story.html
33
Ingvar Kamprad
•1956 Kamprad began using flat packages to ship
furniture. This idea is a large contributor to the success
of the company. By sending the furniture flat and not preassembled, it allowed IKEA to slash its already low prices.
By cutting production and shipping fees.
•Good function, Good design, Good quality, with low
prices is what has driven IKEA success. Kamprad vision
has been a driving force in the success of the company.
He believe his furniture should not only improve the
people's lives but improve people themselves.
IKEA. “Timeline” IKEA. 8 Nov. 2006 <http://www.ikea.com/ms/en_us/about_ikea/full_story.html
Allen, Scott. “Ingvar Kamprad- IKEA Founder and One of The World’s Richest Men.” About.com 8 Nov 2006
<http://entrepreneurs.about.com/cs/famousentrepreneur/p/ingvarkamprad.html
34
Ingvar Kamprad
•Kamprad has long been pressured to go public with his
company. But he refuses. The company is closely
controlled. Own ultimately by a Dutch trust controlled by the
family. Various holding companies handle different parts of
the business from franchising, manufacturing, distribution,
even an investment arm.
Allen, Scott. “Ingvar Kamprad- IKEA Founder and One of The World’s Richest Men.” About.com 8 Nov 2006
<http://entrepreneurs.about.com/cs/famousentrepreneur/p/ingvarkamprad.html
35
Ingvar Kamprad
•Kamprad is an unusual man. He claims to be the
richest man in the world but is also know for being
one of the cheapest. He takes the subway to work
and requires everyone in the company including
himself to fly econ class on flights.
•Can anyone guess what kind of car he
drives?
“Vast Wealth in One Easy Lesson” Chicago Tribune 27 March 2006. Lexis-Nexis. 8 Nov 2006 <http://web.lexis-nexis.com
36
Similarities Between the 3





Risk-takers
Look for innovative ideas
Base decisions on hard research &
analysis
Sense of community within company
Put great value on their people
 Customers, clients, partners


Value-based hiring
Recognize the importance of
globalization
37
Richard Branson Narayan Murthy Ingvar Kamprad
Company name
Virgin Group
Infosys
Technologies
IKEA
Industry
Everything!
Information
Technologies
Furniture
Annual Sales
$8 Billion
$2.2 Billion
19.8 Billion
Before they
were big
Sold records out of a
truck
Worked for Patni
Computers.
Sold matches in bulk
Family
Wife, 2 daughters
Wife,1 daughter
and 1 son
Wife, 3 sons
Management
style
Minimal layers, no
bureaucracy
Simple and
transparent driven
by business needs.
Frugal, Green, and
secretive
38
Are You Cut Out
to Be an Entrepreneur?
o
o
o
o
o
o
o
o
Optimistic & future-oriented
Willing to take risks for profit
Fast-moving & flexible
Determined to succeed
Competitive
Can deal with legal issues
Excellent problem-solvers
Know about finances
Tracy, Brian, “Are You Cut Out to Be an Entrepreneur?” Entrepreneur Magazine, March 21, 2005.
39
Best Practices for Start-Ups

Launching a Business




What opportunities exist?
Which ones offer to the most
profit potential?
Find a new, better, cheaper way
to sell the product to reduce
operation costs
Tell yourself that failure isn’t an
option- Be willing to take risks &
move out of your comfort zone
Tracy, Brian, “Are You Cut Out to Be an Entrepreneur?” Entrepreneur Magazine, March 21, 2005.
40
Develop the Habits
to Win in Business
1.
Plan Ahead

2.
3.
4.
5.
6.
7.
“Proper Prior Planning Prevents Poor Performance”
Get Organized Before You Get Started
Find the Right People
Learn How to Delegate
Monitor Performance
Set Timelines to Achieve Results
Develop the Determination to Win

“Whenever I experience any kind of setbacks, I always
pick myself up and try again” -Branson
Tracy, Brian, “Develop the Habits to Win in Business” Entrepreneur Magazine, May 16, 2005.
41
Different Mind-Sets
& Some Business Ideas




Anyone with passion can do it, especially
in this global economy when the world is
flat.
Initially age/money does matter but
should not be the hindrance… resources
are available if we are willing
It starts with an idea… driven by your
passion/values
Willing to take risk and determined to
success
42
References
1.
“Richard Branson” Viewed 4 Nov 2006 <http://en.wikipedia.org/wiki/Richard_Branson.html>
2.
“Men of the Week: Entertainment.” Viewed 4 Nov 2006
<http://www.askmen.com/men/december99/6c_richard_branson.html>
3.
Deutschman, Alan, “The Gonzo Way of Branding” Fast Company, Issue 87, October 2004, p.91.
4.
Hopkins, Michael S., “26 Most Fascinating Entrepreneurs” Inc. Magazine Viewed 15 Nov 2006
<http://www.inc.com/magazine/20050401/26-branson.html>
5.
http://www.virgin.com, viewed November 4, 2006
6.
http://www.virgin.com/aboutvirgin/allaboutvirgin/whosrichardbranson/default.asp
7.
http://www.virgin.com/aboutvirgin/allaboutvirgin/whatwereabout/default.asp
8.
http://www.virgin.com/aboutvirgin/allaboutvirgin/thewholestory/default.asp
9.
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp
6.
Tracy, Brian, “Are You Cut Out to Be an Entrepreneur?” Entrepreneur Magazine, March 21, 2005.
7.
Tracy, Brian, “Develop the Habits to Win in Business” Entrepreneur Magazine, May 16, 2005.
8.
http://en.wikipedia.org/wiki/Infosys#History
9.
http://in.rediff.com/money/2006/jun/21murthy.htm
10.
http://news.bbc.co.uk/2/hi/business/6039390.stm
11.
http://www.thehindubusinessline.com/iw/2006/10/15/stories/2006101501670100.htm
12.
http://in.tech.yahoo.com/061007/137/68a9f.html
13.
http://www.iipi.org/Conferences/Hawaii_SW_Conference/Nithya%20Presentation.pdf
14.
http://en.wikipedia.org/wiki/BEA_Systems
15.
http://www.inc.com/criticalnews/articles/200610/born.html
16.
“Ingvar Kamprad.” Viewed 8 Nov 2006 <http://en.wikipedia.org/wiki/Ingvar_Kamprad>
17.
“Timeline” IKEA. Viewed 8 Nov. 2006 <http://www.ikea.com/ms/en_us/about_ikea/full_story.html>
18.
Allen, Scott. “Ingvar Kamprad-IKEA Founder and One of The World’s Richest Men.” Viewed 8 Nov 2006
<http://entrepreneurs.about.com/cs/famousentrepreneur/p/ingvarkamprad.html>
19.
“Vast Wealth in One Easy Lesson” Chicago Tribune 27 March 2006. Lexis-Nexis. Viewed 8 Nov 2006 http://web.lexis-nexis.com
20.
Branson, Richard, Losing My Virginity: How I’ve Survived, Had Fun, and Made a Fortune Doing Business My way. Three Rivers
Press, New York, 2004.
43