It starts with an idea

1
It starts with an idea
2
How to start your own IT companyWhat does it
take to be an entrepreneur?

• Todd Dorton
• Nisha Matani
• Dhiraj Kumar

3
Objective

• To define and show the importance of
  entrepreneurship, highlight the best practices
  for start-ups and showcase desirable attributes
  of an entrepreneur

4
Agenda

• Introduction
• Entrepreneurship
• Richard Branson
• N R Narayan Murthy
• Ingvar Kamprad
• Comparison Best Practices
• Conclusion
• Questions

5
Mind blocks

• My own company????

• 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.

Your Mind Blocks
1.
2.
3.
4.
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. Its 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/r
ichardreplies/default.asp, viewed November 4, 2006
6
Doug Bartlett
7
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
8
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 view
ed on 2 Dec 2006
9
Startup Companies

• A startup is a company with limited operating
  history
• Moves out of this phase when it passes various
  milestones
• Becoming profitable, being publicly traded, being
  acquired/merging
• Funded in 2 major ways
• 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/Sta
rtup Company
10
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.
ltwww.sba.gov/advo/stats/sbfaq.pdfgt
11
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
12
Three Successful Entrepreneurs

1. Richard Branson
2. Narayan Murthy
3. Ingvar Kamprad

Top 2 European Brands to Have an Impact on
Consumers Lives
IKEA Virgin
Deutschman, Alan, The Gonzo Way of Branding
Fast Company, Issue 87, October 2004, p.91.
13
Richard Branson
14
Richard BransonVirgin

• 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
15
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
16
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
17
Virgin Group Company Profile

• 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/m
agazine/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/allaboutvi
rgin/whatwereabout/default.asp, viewed November
4, 2006
18
Virgin Group Through the Years

• 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/t
hewholestory/default.asp
19
Virgin Group Elements of Success

• Constantly looking for opportunities
• Offer something better, fresher, more valuable
• Base decisions on hard research analysis
• 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/t
hewholestory/default.asp, viewed November 4,
2006 http//www.virgin.com/aboutvirgin/allaboutvir
gin/richardreplies/default.asp, viewed November
4, 2006
20
Virgin Group Elements of Success

• Diversifying the company
• This enables you to have a contingency plan when
  the economy is going through a rough patch.
• Empowering talent
• Loyalty means a lot to me I guess thats 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
• 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/t
hewholestory/default.asp, viewed November 4,
2006 http//www.virgin.com/aboutvirgin/allaboutvir
gin/richardreplies/default.asp, viewed November
4, 2006
21
Richard BransonCharacter Traits

• Daring/Risk-taker
• It is impossible to run a business without
  taking risks I have enjoyed all the challenges
  we have taken at Virgin, so because Im having
  fun at what Im doing what I do, the risk factor
  takes second place.
• Adventurous
• Many record-breaking attempts
• Selfless
• BA Bonus
• Donates profit to research environmentally
• friendly fuels
• Green
• Virgin Fuel
• Global Warming
• Transformational Leader

http//en.wikipedia.org/wiki/Richard_Branson,
viewed November 4, 2006 http//www.virgin.com/abou
tvirgin/allaboutvirgin/richardreplies/default.asp,
viewed November 4, 2006
22
Narayan Murthy
23
Narayan MurthyInfosys 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
24
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
25
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
26
Infosys Techonologies 5 Elements of Success

• Openness to learn
• -Openness to subordinate your ego to take ideas
  from others
• Meritocracy
• -The best ideas are adopted and implemented
  using data to arrive at the best decision
• Speed
• -Assuring you do things faster compared to
  yesterday and last quarter
• Imagination
• -You continually bring better ideas and better
  innovation to the table
• 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
27
Infosys TechnologiesSuccess 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 19-21,2004
(http//www.iipi.org/Conferences/Hawaii_SW_Confere
nce/Nithya20Presentation.pdf) viewed 4 Dec 2006
28
Murthys 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
29
Ingvar Kamprad
30
Ingvar KampradIKEA

• 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
31
Ingvar KampradProfile

• 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
lthttp//www.ikea.com/ms/en_us/about_ikea/full_stor
y.html
32
IKEAThe 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
lthttp//www.ikea.com/ms/en_us/about_ikea/full_stor
y.html
33
IKEAThrough the Years

•  

• IKEA originally sold picture frames, stocking,
  table runners, wallets, watches and much more.
  He would sell anything that he could provide at
  low cost.
• 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
lthttp//www.ikea.com/ms/en_us/about_ikea/full_stor
y.html
34
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 pre-assembled, 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
lthttp//www.ikea.com/ms/en_us/about_ikea/full_stor
y.html
Allen, Scott. Ingvar Kamprad- IKEA Founder and
One of The Worlds Richest Men. About.com 8 Nov
2006 lthttp//entrepreneurs.about.com/cs/famousent
repreneur/p/ingvarkamprad.html
35
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 Worlds Richest Men. About.com 8 Nov
2006 lthttp//entrepreneurs.about.com/cs/famousent
repreneur/p/ingvarkamprad.html
36
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
lthttp//web.lexis-nexis.com
37
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

38
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
39
Are You Cut Out to Be an Entrepreneur?

• 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.
40
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 isnt 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.
41
Develop the Habits to Win in Business

• Plan Ahead
• 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.
42
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

43
References

• Richard Branson Viewed 4 Nov 2006
  lthttp//en.wikipedia.org/wiki/Richard_Branson.html
  gt
• Men of the Week Entertainment. Viewed 4 Nov
  2006 lthttp//www.askmen.com/men/december99/6c_rich
  ard_branson.htmlgt
• Deutschman, Alan, The Gonzo Way of Branding
  Fast Company, Issue 87, October 2004, p.91.
• Hopkins, Michael S., 26 Most Fascinating
  Entrepreneurs Inc. Magazine Viewed 15 Nov 2006
  lthttp//www.inc.com/magazine/20050401/26-branson.h
  tmlgt
• http//www.virgin.com, viewed November 4, 2006
• http//www.virgin.com/aboutvirgin/allaboutvirgin/w
  hosrichardbranson/default.asp
• http//www.virgin.com/aboutvirgin/allaboutvirgin/w
  hatwereabout/default.asp
• http//www.virgin.com/aboutvirgin/allaboutvirgin/t
  hewholestory/default.asp
• http//www.virgin.com/aboutvirgin/allaboutvirgin/r
  ichardreplies/default.asp
• Tracy, Brian, Are You Cut Out to Be an
  Entrepreneur? Entrepreneur Magazine, March 21,
  2005.
• Tracy, Brian, Develop the Habits to Win in
  Business Entrepreneur Magazine, May 16, 2005.
• http//en.wikipedia.org/wiki/InfosysHistory 
• http//in.rediff.com/money/2006/jun/21murthy.htm 
• http//news.bbc.co.uk/2/hi/business/6039390.stm 
• http//www.thehindubusinessline.com/iw/2006/10/15/
  stories/2006101501670100.htm 
• http//in.tech.yahoo.com/061007/137/68a9f.html 
• http//www.iipi.org/Conferences/Hawaii_SW_Conferen
  ce/Nithya20Presentation.pdf
• http//en.wikipedia.org/wiki/BEA_Systems
• http//www.inc.com/criticalnews/articles/200610/bo
  rn.html