It starts with an idea

1
How to start your
own IT company
What does it take to be an
entrepreneur?
Todd Dorton
Nisha Matani

Dhiraj Kumar
2
 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
 Introduction
 Entrepreneurship
 Richard Branson
 N R Narayan Murthy
 Ingvar Kamprad
 Comparison & Best Practices
 Conclusion
 Questions

4
 Mind blocks

My own company????  List what are the things

which come to your mind
Your Mind Blocks when you put yourself in
1. place of Doug
2.  We will try to address a
3. few of them through our
presentation.
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 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
CIK Enterprise
Digium
Inc.com coolest little startups
Supplements for human & animals both
Marketing for rental companies
This tech support company got started while
looking for phone solution.
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
 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 9
 Statistics on small businesses

• Smallfirms 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>
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 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. Richard Branson
2. Narayan Murthy
3. Ingvar Kamprad
Top 2 European Brands to Have
an Impact on Consumer’s Lives

1. IKEA
2. 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
14
http://www.virgin.com/aboutvirgin/allaboutvirgin/whosrichardbranson/default.asp, viewed November, 4 2006
 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
15
http://www.virgin.com/aboutvirgin/allaboutvirgin/whosrichardbranson/default.asp, viewed November 4, 2006
 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
 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.
17
http://www.virgin.com/aboutvirgin/allaboutvirgin/whatwereabout/default.asp, viewed November 4, 2006
 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
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http://www.virgin.com/aboutvirgin/allaboutvirgin/thewholestory/default.asp
 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/thewholestory/default.asp, viewed November 4, 2006
19
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006
 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
20
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006
 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
21
http://www.virgin.com/aboutvirgin/allaboutvirgin/richardreplies/default.asp, viewed November 4, 2006
Narayan
Murthy

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 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
24
b. Infosys Website (www.infosys.com) viewed on 10/20/2006
 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 25
b. http://in.rediff.com/money/2006/jun/21murthy.htm on 10/20/2006
 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 19-
21,2004 (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

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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, seed
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. 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
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 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 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 IKEA

Technologies
Industry Everything! Information Furniture
Technologies
Annual Sales $8 Billion $2.2 Billion 19.8 Billion
Before they Sold records out of a Worked for Patni Sold matches in bulk
were big truck Computers.
Family Wife, 2 daughters Wife,1 daughter Wife, 3 sons
and 1 son
Management Minimal layers, no Simple and Frugal, Green, and
style bureaucracy transparent driven secretive
by business needs.

38
 Are You Cut Out
to Be an Entrepreneur?
o Optimistic & future-oriented
o Willing to take risks for profit
o Fast-moving & flexible
o Determined to succeed
o Competitive
o Can deal with legal issues
o Excellent problem-solvers
o 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
 “Proper Prior Planning Prevents Poor Performance”
2. Get Organized Before You Get Started
3. Find the Right People
4. Learn How to Delegate
5. Monitor Performance
6. Set Timelines to Achieve Results
7. 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