IT Entrepreneurs
Group 8
Jerrod Brown, Ann Cahill, Abby Cave, Harsha Chimakurthy, Craig Robbins
Agenda






What do you know about IT Entrepreneurs?
Interviews - IT Entrepreneurs we interviewed
Personality Characteristics of IT
Entrepreneurs
Attributes of successful start-up business
How to start a business in Missouri
Summary
AB
Group 8: IT Entrepreneurs
2
IT Entrepreneur Jeopardy
AB
Group 8: IT Entrepreneurs
3
IT Entrepreneur Jeopardy
Guess the
Entrepreneur
Guess the
Business
Business
Terminology
$1.00
$1.00
$1.00
$100,000 $100,000 $100,000
$1,000,000 $1,000,000 $1,000,000
Next Slide
Next Slide
Group 8: IT Entrepreneurs
Next Slide
4
Category 1
Guess the Entrepreneur




Worked for Atari as a technician.
Experimented w/ psychedelics, calling his
LSD experiences “one of the two or three best
things he had done in his life”
Former CEO of Pixar Animation Studios
Co-founded Apple
Group 8: IT Entrepreneurs
5
Category 1
Guess the Entrepreneur
$1.00
Who is Steve Jobs?
Group 8: IT Entrepreneurs
6
Category 1
Guess the Entrepreneur




Grew up in Chicago w/ Adoptive parents
Won the 1998 Sydney to Hobart Yacht Race,
where a storm claimed the life of six sailors on
competing sail boats.
Has failed in his quest to beat out Bill Gates
and become the world’s richest man
CEO of Oracle
Group 8: IT Entrepreneurs
7
Category 1
Guess the Entrepreneur
$100,000
Who is Larry Ellison?
Group 8: IT Entrepreneurs
8
Category 1
Guess the Entrepreneur



Founder of Electronic Data Systems (EDS)
In 1979 when EDS employees were taken into
hostage by the Iranian Government he
directed a successful rescue mission
Founder of the Independence Party, now
known as the Reform Party
Group 8: IT Entrepreneurs
9
Category 1
Guess the Entrepreneur
$1,000,000
Who is H. Ross Perot?
Group 8: IT Entrepreneurs
10
Category 2
Guess the Business



Originally called Jerry and David's Guide to
the World Wide Web
By the end of 1994 already received 1 million
hits
Founded by Jerry Yang and David Filo
graduate students at Stanford in 1994
Yet Another Hierarchical Officious Oracle
Group 8: IT Entrepreneurs
11
Category 2
Guess the Business
For $1.00
What is Yahoo?
Group 8: IT Entrepreneurs
12
Category 2
Guess the Business

This company was named “America’s Most
Innovative Company” by Fortune magazine
six consecutive years before filing for
bankruptcy in 2001. It’s largest source of
income is now owned by Warren Buffett’s
Mid-American Energy Holdings Corp.
Group 8: IT Entrepreneurs
13
Category 2
Guess the Business
For $100,000
What is Enron?
Group 8: IT Entrepreneurs
14
Category 2
Guess the Business



I'm known as the checkerboard square
company.
My founder's grandson was a senator and a
minister.
My parent company is headquartered in
Switzerland
Group 8: IT Entrepreneurs
15
Category 2
Guess the Business
For $1,000,000
What is Nestle Purina PetCare
Group 8: IT Entrepreneurs
16
Category 3
Business Terminology



This type of business structure is owned by a
single individual.
is the quickest and easiest way to set up a
business
is therefore the most common form of new
business
Group 8: IT Entrepreneurs
17
Category 3
Business Terminology
For $1.00
What is a sole
proprietorship?
Group 8: IT Entrepreneurs
18
Category 3
Business Terminology

In business, this is a concept whereby a
person’s financial accountability is limited to
a fixed sum, most commonly that person’s
investment in a company or partnership.
Group 8: IT Entrepreneurs
19
Category 3
Business Terminology
For $100,000
What is limited liability?
Group 8: IT Entrepreneurs
20
Category 3
Business Terminology

Similar to a social security number for a US
citizen, this is used to identify a business for
tax purposes with the Internal Revenue
Services.
Group 8: IT Entrepreneurs
21
Category 3
Business Terminology
For $1,000,000
What is a Federal Employer Identification
Number or a Tax Identification Number?
Group 8: IT Entrepreneurs
22
What do you know about IT
Entrepreneurs?
HC
Group 8: IT Entrepreneurs
23
What do you know about
Entrepreneurs?
A.
B.
C.
D.
is someone who organizes, manages, and assumes the risks of a
business or enterprise
is an agent of change
who takes the resources necessary to produce a pair of jeans that
can be sold for thirty dollars and instead turns them into a
denim backpack that sells for fifty dollars who will earn a profit
by increasing the value those resources create
who expands the size of the economic pie for everyone
All of the above
HC
Library Economics Liberty, http://www.econlib.org/library/Topics/HighSchool/Entrepreneurs.html
Group 8: IT Entrepreneurs
24
Definition of Entrepreneur
Oxford dictionary says…
“a person who sets up a business or businesses”
Merriam-Webster says…
“one who organizes, manages, and assumes the risks of a
business or enterprise ”
Wikipedia says
“An entrepreneur is a person who has possession of an
enterprise, or venture, and assumes significant
accountability for the inherent risks and the outcome. It is
an ambitious leader who combines land, labor, and capital
to create and market new goods or services”
HC
Group 8: IT Entrepreneurs
25
Importance of IT Entrepreneur


At one time, Dow Jones
Industrial Average provided a
snapshot of companies that
mattered in global commerce.
Today that is no longer true as
upstart young companies have
muscled their way into the
world’s largest industry

HC
Primarily, advent of information
technology companies have made
this happen
“How Information Technology Entrepreneurship has Changed the World”, http://www.jackmwilson.com/eBusiness/ITE.htm
Group 8: IT Entrepreneurs
26
Importance of IT Entrepreneur
(cont’d)
Dow Largest
GE
IBM
HC
Non-Dow
Largest
Market Value Founded
Market Value Founded
389
1892
Microsoft
483
1981
223
1911
Intel
269
1968
Wal-mart
Exxon
Merck
Citigroup
211
1969
Cisco
220
1984
195
1882
Lucent
202
1995
162
1934
Pfizer
154
1942
161
1968
AIG
153
1967
AT&T
159
1885
MCI
WorldCom
146
1983
Coca-Cola
152
1919
Bristol Myers
Squibb
145
1933
Johnson&John
son
140
1887
Dell Computer
122
1987
Proctor&Gam
ble
133
1905
Bank of
America
111
1968
“How Information Technology Entrepreneurship has Changed the World”, http://www.jackmwilson.com/eBusiness/ITE.htm
Group 8: IT Entrepreneurs
27
Importance of IT Entrepreneur
(cont’d)
Over 35 years, technology companies have outperformed and
increased the market share over traditional industries.
Sector
HC
Market Share
1964
1998
Utilities
19%
3%
Energy
18%
6%
Basic Materials
17%
3%
Technology
6%
19%
“How Information Technology Entrepreneurship has Changed the World”, http://www.jackmwilson.com/eBusiness/ITE.htm
Group 8: IT Entrepreneurs
28
Entrepreneurs in US Economy


Study shows that entrepreneurs are different
and their behavior plays an important role in
the U.S. economy
"Evidence on entrepreneurs in the United
States: Data from the 1989-2004 Survey of
Consumer Finances"
 Economic
Perspectives, fourth quarter 2007,
Federal Reserve Bank of Chicago)
 Conducted by Mariacristina De Nardi, Phil
Doctor, and Spencer D. Krane
JB
“Entrepreneurs in the U.S. economy”, http://findarticles.com/p/articles/mi_m1153/is_12_130/ai_n27949436/
Group 8: IT Entrepreneurs
29
Entrepreneurs in US Economy
(cont’d)

JB
Self-employed business owners. Roughly 8 %
of the nation's households fall in this
category.
“Entrepreneurs in the U.S. economy”, http://findarticles.com/p/articles/mi_m1153/is_12_130/ai_n27949436/
Group 8: IT Entrepreneurs
30
Entrepreneurs in US Economy
(cont’d)

Entrepreneurs are wealthy, on average.

JB
Own nearly one-third of all wealth in the United
States. Median net worth ranges between about
$260,000 and $540,000 in the years studied. This is
between 4 and 6.5 times the median net worth of
other households.
“Entrepreneurs in the U.S. economy”, http://findarticles.com/p/articles/mi_m1153/is_12_130/ai_n27949436/
Group 8: IT Entrepreneurs
31
Entrepreneurs in US Economy
(cont’d)

Entrepreneurs are also more educated than other heads of
households.



JB
Much more likely to have a college degree.
Fraction of entrepreneurs with a college degree is 20% higher
than the proportion for the rest of the population.
Less likely than others to have only a high school diploma or
less education.
“Entrepreneurs in the U.S. economy”, http://findarticles.com/p/articles/mi_m1153/is_12_130/ai_n27949436/
Group 8: IT Entrepreneurs
32
Entrepreneurs in US Economy
(cont’d)

Entrepreneurs most often work in
professional practices

Law and medicine; contracting and
construction; farm, agricultural
services, and landscaping; and general
retail and wholesale trade.


JB
These four areas combined account for
about 57%of entrepreneurs' businesses.
Authors characterize entrepreneurs
as savers and innovators and that
they are important sources of wealth
creation in the U.S. economy.
“Entrepreneurs in the U.S. economy”, http://findarticles.com/p/articles/mi_m1153/is_12_130/ai_n27949436/
Group 8: IT Entrepreneurs
33
Entrepreneurs in US Economy
(cont’d)

Monthly Labor Review (December 2008)


JB
The role of entrepreneurs in the American economy is
legendary. One of the unique characteristics of the U.S.
economic system is the freedom to start a business
relatively easily and quickly.
One of the engines of growth is the employment and
wages generated by new businesses.
“Monthly Labor Review, December 2008”, http://www.asiaing.com/monthly-labor-review-december-2008.html
Group 8: IT Entrepreneurs
34
Entrepreneurs in US Economy
(cont’d)

Entrepreneurship also entails a never ending search for
new and imaginative ways to combine the factors of
production into new methods, processes, technologies,
products, or services. These efforts lead to



JB
growth of new businesses
the decline of less productive ones and
the reallocation of resources from less profitable businesses
and establishments to more profitable ones.
“Monthly Labor Review, December 2008”, http://www.asiaing.com/monthly-labor-review-december-2008.html
Group 8: IT Entrepreneurs
35
Outlook on Entrepreneurs


“Most American voters view
entrepreneurship as key to
solving the current U.S.
economic crisis”
The survey of 816 registered,
likely voters, conducted by Luntz,
Maslansky Strategic Research,
found that

JB
about 70% of respondents think
the health of the U.S. economy
depends on the success of
entrepreneurs, while 80% want to
see government actively use its
resources to promote
entrepreneurship.
“Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal,
http://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy
Group 8: IT Entrepreneurs
36
Outlook on Entrepreneurs (cont’d)

JB
71% of respondents believe the economic turmoil
makes it much harder to become an entrepreneur
and only 26% said they would actually consider
starting a business in the next five years even though
many would like to sometime in the future.
http://www.kauffman.org/uploadedfiles/Econ_Crisis_Survey_9_30_08.pdf
“Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal,
http://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy
Group 8: IT Entrepreneurs
37
Outlook on Entrepreneurs (cont’d)

JB
56% of respondents said they would trust smallbusiness owners to guide the economy, while
only 14% said they would trust members of
Congress.
http://www.kauffman.org/uploadedfiles/Econ_Crisis_Survey_9_30_08.pdf
“Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal,
http://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy
Group 8: IT Entrepreneurs
38
Outlook on Entrepreneurs (cont’d)
“History has repeatedly demonstrated that new
companies and entrepreneurship are the way
to bolster a flagging economy”
JB
“Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal,
http://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy
Group 8: IT Entrepreneurs
39
Myths about Entrepreneurs

Myth 1 - Entrepreneurs are “orphans and
outcasts”
 Lonely
Atlases battling a hostile world or antisocial geeks inventing world-changing gizmos
 Not
true. They are a bit more independent, but still
need business partners and social networks to
succeed
HC
“Global Heroes”, A special report on entrepreneurship , The Economist,
http://www.economist.com/specialreports/displaystory.cfm?STORY_ID=13216025
Group 8: IT Entrepreneurs
40
Myths about Entrepreneurs
(cont’d)

Myth 2: Entrepreneurs are always young

Bill Gates, Steve Jobs dropped out of college to
start their business. Founders of Google and
Facebook were students when they started their
business




Harland Sanders started franchising KFC when he
was 65.
Gary Burrell started Garmin when he was 52.
Herb Kelleher stated SWA when he was 40.
Kauffman foundation surveyed 652 American-born
bosses of technology companies set up in 19952005 and found that


HC
Average age boss was 39 when he or she started.
Number of founders over 50 was twice as large as that
under 25.
“Global Heroes”, A special report on entrepreneurship , The Economist,
http://www.economist.com/specialreports/displaystory.cfm?STORY_ID=13216025
Group 8: IT Entrepreneurs
41
Myths about Entrepreneurs
(cont’d)

Myth 3: Entrepreneurship is driven mainly
by venture capital
 True
in capital-intensive industries such as hightech and biotechnology
 Most
of this money funds start-ups in selective
industries. Vast majority of start-ups are funded by
personal debt, friends and families.

Google was not funded by venture capital. The founders
raised $1 Million through friends and connections
HC
Group 8: IT Entrepreneurs
42
Myths about Entrepreneurs
(cont’d)

Myth 4: To succeed,
entrepreneurs should produce a
world-changing new product
 Not
true. Most successful
entrepreneurs focus on processes
and not products
 Richard
Branson made flying less
tedious by providing his customers
with entertainment
 Oprah Winfrey has become America’s
richest self-made woman through
successful brand management
HC
Group 8: IT Entrepreneurs
43
Myths about Entrepreneurs
(cont’d)

Myth 5: Entrepreneurship cannot flourish in
big companies
 Jack
Welch transformed GE into a collection of
smaller entrepreneurial companies
HC
Group 8: IT Entrepreneurs
44
Ease of doing Business
Business Region
Singapore
New Zealand
United States
Hong Kong, China
Denmark
United Kingdom
Ireland
Canada
Australia
Norway
Iceland
Japan
Thailand
Finland
Georgia
Saudi Arabia
Sweden
Bahrain
Belgium
Malaysia
Ease of Doing Business Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Business Region
Ease of Doing Business Rank
Togo
Cameroon
Lao PDR
Mali
Equatorial Guinea
Angola
Benin
Timor-Leste
Guinea
Niger
Eritrea
Venezuela
Chad
163
164
165
166
167
168
169
170
171
172
173
174
175
São Tomé and
Principe
Burundi
Congo, Rep.
Guinea-Bissau
176
177
178
179
Central African
Republic
Congo, Dem. Rep.
180
181
“Economy Rankings”, Doing Business, http://www.doingbusiness.org/economyrankings/
HC
Group 8: IT Entrepreneurs
45
ARE YOU AN ENTREPRENEUR?

BDC – Business Development Bank of Canada


http://www.bdc.ca/en/business_tools/entrepreneurial_selfAssessment/Entrepreneurial_self_assessment.htm
http://www.potentielentrepreneur.ca/client/QuestionnaireNewSectionCalculateEn.asp
JB
Group 8: IT Entrepreneurs
46
Interviews
IT Entrepreneurs that we talked to….
JB
Group 8: IT Entrepreneurs
47
Entrepreneur List
Kent Plunkett

CEO and Founder of Salary.com, an online salary wizard
and software provider 1
Brant and Brock Bukowsky

Founders of Show-Me Tickets, an online ticket brokerage
and Mortgage Research Center an online VA mortgage
brokerage 2
Mark Cuban

American billionaire entrepreneur. He is the owner of the
Dallas Mavericks, an NBA basketball team, and Chairman
of HDNet, an HDTV cable network 3
1 www.salary.com, viewed 4/9/09
2 HTTP://COLUMBIATRIBUNE.COM/2007/DEC/20071201BUS
I001.ASP , Viewed 04/09/09
3 DEVIN LEONARD. Fortune. New York: Oct 15, 2007. Vol. 156, Iss. 8; p.
172
JB
Group 8: IT Entrepreneurs
48
Kent Plunkett - Background



Previous work experience – CEO Bumblebee
Technologies; Vice president of InfoSpace; Director of
Pro CD
Educational Background – Bachelors, Georgetown
University; MBA, Harvard
Vision – “to make compensation data accessible and building
on-demand software and tools to drive equity into discussions
about people, pay and performance”
Group 8: IT Entrepreneurs
AJ
Kent Plunkett,CEO of Salary.com, interviewed in person by Abby Cave, March , 2009
49
www.salary.com
Business Demographics
Salary.com
• Leading
provider of compensation and talent management
solutions
• Over 7000 corporate subscribers
• Consumer-facing site generates over 4 million visitors per
month
• Used by more than 25% of Fortune 500
http://www.salary.com/aboutus/layoutscrip
ts/abtl_default.asp?tab=abt&cat=cat012
&ser=ser041&part=par078
Group 8: IT Entrepreneurs
AJ
50
Brant and Brock Bukowsky Background
• Grew up in Columbia, MO 3
• Attended University of Missouri –
Columbia, pursued teaching careers 2,3
• Parents fostered entrepreneurship and
supportive 1
• Parents were educators 3
Brock Bukowsky
 Childhood
• Enjoyed playing sports and watching
MU basketball, football and Cardinal
baseball
• Quiet
• Valedictorian
 Adult
• Started out in computer science then
computer programming then
mathematics.
• Christian Faith very important
• Strategic planner, looks at the big
picture
2 Brock Bukowsky, Founder MRC, interviewed via email
by Craig Robbins, March 17, 2009
CR
3
Brant Bukowsky
 Childhood
• Very entrepreneurial; selling
homemade lottery tickets as a child
• Lacked confidence
 Adult
• Risk taker
• Generates lots of business leads,
always wanting to pursue new
ideas
• Great marketing ability
1 Brant Bukowsky, Founder of MRC, interviewed via email
by Craig Robbins, March 15, 2009
HTTP://COLUMBIATRIBUNE.COM/2007/DEC/20071201BUS I001.ASP , Viewed 04/09/09
51
Group 8: IT Entrepreneurs
Business Demographics
Mortgage Research Center

2007 #96 1


Subprime Loan
alternative. 1
1 http://www.mortgageresearchcenter.com/b/mrc.html?
src=adw, viewed 4/9/09
Founded 2002 2
Online VA mortgage loan
broker 2
Est. Annual Revenue $15,000,000 2

Est. Employees – 100 2

Location – Columbia, MO 2
2 HTTP://COLUMBIATRIBUNE.COM/20
07/DEC/20071201BUSI001.ASP , Viewed
04/09/09
Group 8: IT Entrepreneurs
CR
52
Mark Cuban
JB
Group 8: IT Entrepreneurs
53
Group 8: IT Entrepreneurs
54
Mark Cuban - Background
CHILDHOOD
 Cuban was shortened from
Chabenisky when Mark’s
grandparents immigrated to America.
 Father was an automobile
upholsterer
 Grew up in Mt. Lebanon a suburb
of Pittsburg
 First Entrepreneurial venture was
at age 12, selling garbage bags in
order to buy a pair of basketball
shoes
 Paid for College by buying and
selling stamps; once made $1,100 by
starting a chain letter
ADULT
 1981 Graduated from Indiana
University w/ a Bachelor's Degree in
Business Administration
 Serial Entrepreneur;
Microsolutions, Broadcast.com,
HDNet, 2929 Entertainment,
Landmark Theaters, Dallas
Mavericks, Synergy Sports
Technology, IceRocket, RedSwoosh,
Weblogs, Inc. etc.
 Guiness Book – largest single ecommerce transaction, $40 million
for Gulfstream V jet
1 DEVIN LEONARD. Fortune. New York: Oct 15, 2007. Vol. 156, Iss.
8; p. 172
2 http://en.wikipedia.org/wiki/Mark_Cuban, viewed March 14,
2009
3 Kristin Todd. Baylor Business Review. Waco: Spring 2006. Vol.
24, Iss. 2; p. 15 (1 page)
JB
Group 8: IT Entrepreneurs
55
Business Demographics
Broadcast.com
HDNet





1995 - Audionet founded, later
became Broadcast.com in 1998 2
Sports Webcasting
330 employees2
$13.5 million in revenue for the
second quarter 1999 2
1999 - Sold to Yahoo for $5.9
billion in Yahoo! stock 2
1 Elizabeth Rathbun. Broadcasting & Cable. New York: Oct 4,
1999. Vol. 129, Iss. 41; pg. 26, 1 pgs
2 http://library.dialog.com/bluesheets/html/bl0636.html
JB






2001 – HDNet Founded 4
High-definition satellite TV
network w/ ~ 6.8 million
subscribers 3,5
2001 – present – Hindered by
Mark’s personal conflicts 3
40 employees 4
$4,700,000 in annual sales 4
Location – Denver, CO 4
3 DEVIN LEONARD. Fortune. New York: Oct 15, 2007. Vol. 156, Iss. 8; p.
172
4 www.manta.com/coms2/dnbcompay_ft05tl. viewed 4/9/09
5 HDNet, OnlyGroup
All-High Definition
National Television Network,
8: IT Entrepreneurs
56
Launches on DIRECTV
IT Entrepreneur Jeopardy
HC
Group 8: IT Entrepreneurs
57
Personality Characteristics of
IT Entrepreneurs
AB
Group 8: IT Entrepreneurs
58
Those in the Industry Say:

Dr. Donald Kuratko
Jack M Gill Chair of Entrepreneurship
The Kelly School of Business, Indiana University-Bloomington



Essential ingredients include the willingness to take calculated
risks-in terms of time, equity or career; the ability to formulate an
effective venture team; the creative skills to marshal needed
resources; the fundamental skill of building a solid business plan;
and finally the vision to recognize opportunity where others see
chaos, contradiction and confusion.
It’s not magic; it’s not mysterious; and it has nothing to do with
genes. It’s a discipline…and can be learned. (Peter Drucker)
If you think you can, or think you can’t…you’re probably right!
http://www.scribd.com/doc/813147/Entrepreneurship-08-presentation-Kuratko
AB
Group 8: IT Entrepreneurs
59
Those in the Industry say:

Lloyd Shefsky
Clinical Professor of Entrepreneurship
Kellogg School of Management-Northwestern University





Author of Entrepreneurs Are Made Not Born
“Do what you know best and love most” and “Know when your
…entrepreneurial business no longer needs an entrepreneur but
requires a manager”
An entrepreneur must have “self confidence, imagination, fortitude
and dedication”
Opportunities may present themselves as luck, or as the result of hard
work; an entrepreneur must be prepared to take advantage of them.
Shefsky, Lloyd. (1996), Entrepreneurs Are Made Not Born, Glencoe/McGraw-Hill
AB
Group 8: IT Entrepreneurs
60
Industry Data on Personality
Characteristics

An Entrepreneur is:
 Self
confident-having confidence in oneself and
in one’s powers and abilities
 Achievement oriented-results gained by focus
and sustained effort
 Risk Taker-realize there is a chance of loss
inherent in achieving their goals
 Someone who will make decisions, take action
and think they can control their own destinies
www.roseindia.net/articles/characteristics-successful-entrepreneur.page, viewed April 3, 2009
www.entrepreneurideaguide.com/Sections/Characteristics-of-entrepreneur/Characteristics-of-entrepreneurs.htm,
viewed April 3, 2009
AB
Group 8: IT Entrepreneurs
61
Industry Data on Personality
Characteristics

Inconsequential characteristics:
 Age-young
vs old
 Gender-cultural bias
 Education
 Luck-”I believe in luck…I find the
harder I work the more I have of it. “
Thomas Jefferson

www.kevingivens.com/characteristic-of-an-entrepreneur/, viewed on April 2, 2009

http://www.quotegarden.com/effort.html , viewed April 9, 2009.
AB
Group 8: IT Entrepreneurs
62
Comparison of Personal
Characteristics of the interviewees
JB
Personality
Traits
Entrepreneur
you admire
Advice
What
keeps you
up at night.
Kent
Plunkett
Analytical, visionary,
compelling
communicator,
strategist1
Ted Turner –
vision, sports and
work achievement1
Help others succeed
and know when to
fire someone.1
difficulty
developing
someone and
firing the person1
Brock
Bukowsky
Competitive,
passionate, caring,
empathetic, faithful,
Integrity3
Someone who built
a business and
gave most their
money to charity.3
Plan on needing 2x
what you think for
start-up . Discover
your talents.3
“Sleeps like a
baby”3
Brant
Bukowsky
Risk taker, loves new
challenges,
ADHD2
People who do
“game changing
things”2
Try many things.
You will fail much
more than succeed2
1. Changes in
industry
2. Firing people2
Mark Cuban
Competitive,
outspoken, business
adrenaline junkie4
Bill Gates, Larry
Ellison, Old school
entrepreneurs4
Know your product
and environment
better than
anybody.4
1.
2.
Family
Staying
ahead of the
tech. curve5
1 Kent Plunkett,CEO of Salary.com, interviewed in person by Abby Cave, March , 2009
2 Brant Bukowsky, Founder of MRC, interviewed via email 4 http://www.techcrunch.com/2008/09/09/mark-cuban-when-i-die-i-wantby Craig Robbins, March 15, 2009
to-come-back-as-me/
3 Brock Bukowsky, Founder MRC, interviewed via email
5 Mark Cuban, Serial Entrepreneur, interviewed via email by Jerrod Brown
by Craig Robbins, March 17, 2009
On April 8, 2009
Group 8: IT Entrepreneurs
63
Comparison of Interview
Businesses
Salary.com
Mortgage
Research Center
How did the
business idea
originate?
Vision of Kent Plunkett1
Helping a veteran get a
VA loan. An email from
now CEO Nathan Long6
Belief that the price of
LCD TVs would decline
and High definition
would be mainstream5
How was the
business start-up
funded?
$300,000 from family
and friends1
Money from Show-Me
Tickets which was
originally funded w/
credit cards.3
Mark became a
billionaire after selling
broadcast.com to
Yahoo!5
How did they
obtain their
customer base?
Used previous
experience with web
based advertising 1
“Search” engine
marketing/
Optimization, pay-perclick adds3,6
Time Warner Cable,
DirectTV, EchoStar,
Charter, Insight,
DishNetwork 4
What were some
Challenges?
1. Getting people to see
and believe the vision1
2. Attracting and
retaining quality
employees1
1. Getting people to take
them seriously because
of their age 6
2. Funding3
1.
1 Kent Plunkett,CEO of Salary.com, interviewed in person by Abby Cave, March , 2009
2 Brant Bukowsky, Founder of MRC, interviewed via email
by Craig Robbins, March 15, 2009
JB
3 Brock Bukowsky, Founder MRC, interviewed via email
by Craig Robbins, March 17, 2009
Group 8: IT Entrepreneurs
HDNet
2.
Mark’s
outspokenness5
Radical ideas and
stepping on toes of
other big players5
4 http://www.cedmagazine.com/hdnet-nets-time-warner-cable-deal.aspx
5 DEVIN LEONARD. Fortune. New York: Oct 15, 2007. Vol. 156,
Iss. 8; p. 172
6 HTTP://COLUMBIATRIBUNE.COM/2007/DEC/20071201BUSI001.ASP ,
Viewed 04/09/09
64
Attributes of successful startup business
CR
Group 8: IT Entrepreneurs
65
Attributes of Successful Start-ups

Even though revenue is sign of success focus on profitability
4th quarter of 1999 increased sales
157% to 650 million but also
increased cost
http://www.vitp.ca/techpark-blog/image.axd?picture=amazon.jpg
1 Sydney Finkelstein. The Journal of Business Strategy. Boston: Jul/Aug 2001. Vol. 22, Iss. 4; p. 16
CR
Group 8: IT Entrepreneurs
66
Attributes of Successful Start-ups


Avoid extremely niche strategies1
Do not focus on low cost, low price, low-margin strategy those are
achieved by economies of scale in large companies2
In 1999 pets.com spent $460 in
advertising for every $100 dollars
in sales1
http://jrandolph.com/selenium/fosdem2006/pix/pets_com_puppet.jpg
1 Sydney Finkelstein. The Journal of Business Strategy. Boston: Jul/Aug 2001. Vol. 22, Iss. 4; p. 16
2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun 2008. Vol. 51, Iss. 3; p. 211
CR
Group 8: IT Entrepreneurs
67
Attributes of Successful Start-ups

Successful startups almost always rely on distinct
products or service differentiators
http://i.ehow.com/images/GlobalPhoto/Articles/2047991/Ebay_Full.jpg
2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun 2008. Vol. 51, Iss. 3; p. 211
CR
Group 8: IT Entrepreneurs
68
Attributes of Successful Start-ups

Attack markets that are easy to penetrate and use the
flanking technique (i.e. Toyota) or guerrilla tactics (i.e.
Alienware) to gain market share
http://image.alienware.com/images/prod_info_img/miscellaneous/AW-CO2.jpg
http://media.photobucket.com/image/toyota.com/bballjay_10/Toyota_logo.jpg
2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun 2008. Vol. 51, Iss. 3; p. 211
CR
Group 8: IT Entrepreneurs
69
Attributes of Successful Start-ups

A study of 2994 startups found that survival in the first 3
years was no more likely if you plan or grabbed
opportunities without planning
http://www.showmetickets.com/
http://www.vamortgagecenter.com/
2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun 2008. Vol. 51, Iss. 3; p. 211
CR
Group 8: IT Entrepreneurs
70
Attributes of Successful Start-ups



Your competition will often not notice your startup or ignore it
since your company is so small2
Create advantages in size, customer position, and establish
infrastructure1
Startups have the flexibility to make dramatic changes in strategy
sacrificing short term results in return for much better long term
results2
Netflix has over 100 shipping locations
http://z.hubpages.com/u/12403_f260.jpg
1 Sydney Finkelstein. The Journal of Business Strategy. Boston: Jul/Aug 2001. Vol. 22, Iss. 4; p. 16
2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun 2008. Vol. 51, Iss. 3; p. 211
CR
Group 8: IT Entrepreneurs
71
Attributes of Successful Start-ups

Be able to deliver a 20-second elevator pitch and a 20minute presentation that fully explains your company
at an abstract level
2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun 2008. Vol. 51, Iss. 3; p. 211
CR
Group 8: IT Entrepreneurs
72
How to start a business in
Missouri
AJ
Group 8: IT Entrepreneurs
73
Starting a business in Missouri





Do a name check
Determine the best business structure
Obtain a Federal Employer Identification
Number (FEIN)
Register for the appropriate taxes
Obtain the necessary permits
AJ
Group 8: IT Entrepreneurs
74
Do a name check

Check the availability of the desired business
name with the Secretary of State’s office
 https://www.sos.mo.gov/BusinessEntity
AJ
http://www.sos.mo.gov/business/corporations/startBusiness.asp
Group 8: IT Entrepreneurs
75
Determine which business
structure best suits your business




AJ
Sole proprietorship - owned by a single
individual
Partnership – joining of one or more
individuals, corporations or other entities
under a partnership agreement
Corporation – a legal entity formed to
conduct business, separate from the
persons that form it
Limited Liability Company (LLC) – a
non-corporate business that provides
limited liability to its owners
http://www.missouribusiness.net/startup/index.asp
Group 8: IT Entrepreneurs
76
Determine which business
structure best suits your business
Each structure has unique registration requirements. Registration
forms for each structure can be found on the Missouri Secretary of
State’s web site at: http://sos.mo.gov/forms.asp.
AJ
http://www.sos.mo.gov/business/corporations/startBusiness.asp
http://www.missouribusiness.net/startup/index.asp
Group 8: IT Entrepreneurs
77
Obtain a Federal Employer
Identification Number (FEIN)


FEINs are used for tax purposes and are
required by the IRS for most businesses that
employ workers
You can apply for a FEIN:
 Online
at www.irs.gov/businesses
 By telephone at 1-800-829-4933
 By mailing or faxing Form SS-4, Application for
Employer Identification Number, which can be
printed from the web site
http://www.missouribusiness.net/irs/pdfs/fss4.
pdf
AJ
http://www.missouribusiness.net/startup/index.asp
www.irs.gov/businesses
Group 8: IT Entrepreneurs
78
Register for the appropriate taxes






AJ
Retail Sales Tax – required for any business that sells or
leases goods or provides a taxable service to consumers
Consumers Use Tax – required for any business
purchasing goods from an out-of-state vendor
Employer Withholding Tax – required for every
employer transacting business within the state and
making payment of wages to any individual
Corporate Income Tax – required for any corporation
that has gross income of $100 or more
Corporation Franchise Tax – required for all
corporations engaged in business in Missouri
To register for these taxes, complete Form 2643,
Missouri Tax Registration Application, and submit to
the Missouri Department of Revenue. This form can be
found at
http://dor.mo.gov/tax/business/register/forms/2643af.
pdf
http://dor.mo.gov/tax/business/register/
Group 8: IT Entrepreneurs
79
Obtain any necessary permits
relevant to your business

State permit search
 http://www.business.mo.gov/lookup/PermitSea
rch.aspx

Local permit search (check with city, county
and area health agency)
 http://www.business.mo.gov/lookup/CityCount
y_Search.aspx
AJ
http://www.business.mo.gov/
Group 8: IT Entrepreneurs
80
IT Entrepreneur Jeopardy
AJ
Group 8: IT Entrepreneurs
81
Wrap-Up
JB
Group 8: IT Entrepreneurs
82
Team Deduction

Who are entrepreneurs and what are their
characteristics?
An entrepreneur is someone who is willing to take
calculated risks for the benefit of their vision.
 They will lead, sacrifice and motivate to the end.
 They can be anyone; man, woman, young, mature,
educated, or lack thereof.
 These people do not allow themselves to be
stereotyped, they come from all walks of life.
 Once their vision is self sustaining, the entrepreneur
will often leave and begin bringing life to a new
innovation.

JB
Group 8: IT Entrepreneurs
83
Thank you for your time and
remember, you may be an
ENTREPRENEUR!
Group 8: IT Entrepreneurs
JB
84
Questions?
Group 8: IT Entrepreneurs
85
Resources

www.econlib.org/library/Topics/HighSchool/Entrepreneurs.html, viewed April 16, 2009.

www.jackmwilson.com/eBusiness/ITE.htm, viewed April 18, 2009.

http://findarticles.com/p/articles/mi_m1153/is_12_130/ai_n27949436, viewed April ,18, 2009.

www.asiaing.com/monthly-labor-review-december-2008.htmlKelly, viewed April , 2009.








Spors, Kelly K. ( February 23, 2009), “So, You Want To Be an Entrepreneur: First, answer these questions to
see if you have what it takes,” Wall Street Journal, Eastern Edition, p. R.1.
http://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy, viewed
April 18, 2009.
http://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy viewed
April 18, 2009.
http://www.doingbusiness.org/economyrankings, viewed April 18, 2009.
www.salary.com, viewed April 9, 2009.
http://columbiatribune.com/2007/Dec/20071201Busi001.asp, viewed April, 19 2009.
Leonard, D. (2007), “Mark Cuban May Be a Billionaire, but What He Really Needs is Respect,” Fortune, Vol.
156, Iss. 8, pp. 172-177.

Kent Plunkett, CEO of Salary.com, interviewed in person by Abby Cave, March, 12 2009.

http://www.manta.com/company//mmipedx, viewed April 9, 2009.

http://www.salary.com/aboutus/layoutscripts/abtl_default.asp?tab=abt&cat=cat012&ser=ser041&part=par07
8, viewed April 9. 2009.
Group 8: IT Entrepreneurs
86
Resources Continued

Brock Bukowsky, Fonder MRC, interviewed via email by Craig Robbins, March 17, 2009.

Brant Bukowsky, Founder of MRC, interviewed via email by Craig Robbins, March 17, 2009.

http://columbiatribune.com/2007/Dec/20071201BUs i001.asp, viewed March 14, 2009.

http://www.mortgageresearchcenter.com/b/mrc.html?src=adw, viewed April 9, 2009.

http://en.wikipedia.org/wiki/Mark_Cuban, viewed March 14, 2009.

Todd, K. (2006), “Miracle Marketer: Mark Cuban,” Baylor Business Review, Vol. 24, Iss. 2; pp. 15-16.

Rathbun E. (1999), “Cuban: Embrace the Web,” Broadcasting & Cable, Vol. 129, Iss. 41; pg. 26.

http://library.dialog.com/bluesheets/html/blO636.html, viewed April 9, 2009.



www.manta.com/coms2/dnbcompay_ftO5tl., viewed April 9, 2009.
HDNet, Only All-High Definition National Television Network, Launches on DIRECTV, viewed April 9, 2009.
http://www.techcrunch.com/2008/09/09/mark-cuban-when-i-die-i-want-to-come-back-as-me/, viewed
March 14, 2009.

Mark Cuban, Serial Entrepreneur, interviewed via email by Jerrod Brown on April 8, 2009.

http://www.cedmagazine.com/hdnet-nets-time-time-warner-cable-deal.aspx, viewed March 14, 2009.

Davis, A., and Olson, E. (2008), Business Horizons. Greenwich. Vol. 51, Iss. 3; p. 211.

Finkelstein, S. (2001), The Journal of Business Strategy. Vol. 22, Iss. 4; p. 16.
Group 8: IT Entrepreneurs
87
Resources Continued

http://www.scribd.com/doc/813147/Entrepreneurship-08-presentation-Kuratko

Shefsky, Lloyd. (1996), Entrepreneurs Are Made Not Born, Glencoe/McGraw-Hill

www.roseindia.net/articles/characteristics-successful-entrepreneur.page, viewed April 3, 2009

www.entrepreneurideaguide.com/Sections/Characteristics-of-entrepreneur/Characteristics-ofentrepreneurs.htm, viewed April 3, 2009.

www.kevingivens.com/characteristic-of-an-entrepreneur/, viewed on April 2, 2009.

http://www.quotegarden.com/effort.html , viewed April 9, 2009.

http://www.missouribusiness.net/startup/index.asp , viewed April

http://www.business.mo.gov/

http://www.sos.mo.gov/business/corporations/startBusiness.asp

www.irs.gov/businesses

http://dor.mo.gov/tax/business/register/

www.salary.com

http://www.kauffman.org/uploadedfiles/Econ_Crisis_Survey_9_30_08.pdf, viewed May 3, 2009
Group 8: IT Entrepreneurs
88