1

It starts with an idea

2

How to start your own IT

companyWhat does it take to be an

entrepreneur?Todd DortonNisha MataniDhiraj 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 Blocks1.2.3.4.

“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. 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

6

Doug Bartlett

7

Some Successful Business Ideas

Business Name The IdeaSilent 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 viewed 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/Startup 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. <www.sba.gov/advo/stats/sbfaq.pdf>

11

Top 10 Cities for EntrepreneursRank 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 Branson2. Narayan Murthy3. Ingvar Kamprad

1. IKEA2. Virgin

Top 2 European Brands to Have an Impact on Consumer’s Lives

Deutschman, Alan, “The Gonzo Way of Branding” Fast Company, Issue 87, October 2004, p.91.

13

Richard Branson

14

Richard Branson:“Virgin”

Best known for the “Virgin” brand Born in 1950 in Shamley Green, Surrey Educated at Scaitliffe School & Stowe School

DyslexiaCaptain of the football & cricket teamsHad a generally curious spirit

By the age of 15, he had started 2 failed venturesX-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 aunthttp://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/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

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/thewholestory/default.asp

19

Virgin Group: “Elements of Success”

Constantly looking for opportunitiesOffer 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/thewholestory/default.asp, viewed November 4, 2006

http://www.virgin.com/aboutvirgin/allaboutvirgin/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 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 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

21

Richard Branson:Character 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 I’m having fun at what I’m 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/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006

22

NarayanMurthy

23

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

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 2006b. http://in.rediff.com/money/2006/jun/21murthy.htm on 10/20/2006

26

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

27

Infosys Technologies:“Success Factors”

Pioneer in business practices

Longstanding client relationship

End-to end solution Global delivery model Focus on people,

process & TechnologyA 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_Conference/Nithya%20Presentation.pdf) viewed 4 Dec 2006

28

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

29

Ingvar Kamprad

30

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

31

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

32

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

33

IKEA:Through 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 <http://www.ikea.com/ms/en_us/about_ikea/full_story.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 <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

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 World’s Richest Men.” About.com 8 Nov 2006 <http://entrepreneurs.about.com/cs/famousentrepreneur/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 <http://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?

o Optimistic & future-orientedo Willing to take risks for profito Fast-moving & flexibleo Determined to succeedo Competitiveo Can deal with legal issueso Excellent problem-solverso 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 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.

41

Develop the Habits to Win in Business

1. Plan Ahead “Proper Prior Planning Prevents Poor Performance”

2. Get Organized Before You Get Started3. Find the Right People4. Learn How to Delegate5. Monitor Performance6. Set Timelines to Achieve Results7. 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

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.