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IT Entrepreneurs Group 8 Jerrod Brown, Ann Cahill, Abby Cave, Harsha Chimakurthy, Craig Robbins.

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Presentation on theme: "IT Entrepreneurs Group 8 Jerrod Brown, Ann Cahill, Abby Cave, Harsha Chimakurthy, Craig Robbins."— Presentation transcript:

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2 IT Entrepreneurs Group 8 Jerrod Brown, Ann Cahill, Abby Cave, Harsha Chimakurthy, Craig Robbins

3  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 Agenda 2Group 8: IT Entrepreneurs AB

4 IT Entrepreneur Jeopardy 3Group 8: IT Entrepreneurs AB

5 IT Entrepreneur Jeopardy 4Group 8: IT Entrepreneurs Guess the Entrepreneur Guess the Business Business Terminology $1.00 $100,000 $1,000,000 Next Slide

6 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 5Group 8: IT Entrepreneurs

7 Category 1 Guess the Entrepreneur $1.00 6Group 8: IT Entrepreneurs Who is Steve Jobs?

8 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 7Group 8: IT Entrepreneurs

9 Category 1 Guess the Entrepreneur $100,000 8Group 8: IT Entrepreneurs Who is Larry Ellison?

10 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 9Group 8: IT Entrepreneurs

11 Category 1 Guess the Entrepreneur $1,000,000 10Group 8: IT Entrepreneurs Who is H. Ross Perot?

12 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 11Group 8: IT Entrepreneurs

13 Category 2 Guess the Business For $ Group 8: IT Entrepreneurs What is Yahoo?

14 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 It’s largest source of income is now owned by Warren Buffett’s Mid-American Energy Holdings Corp. 13Group 8: IT Entrepreneurs

15 Category 2 Guess the Business For $100,000 14Group 8: IT Entrepreneurs What is Enron?

16 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 15Group 8: IT Entrepreneurs

17 Category 2 Guess the Business For $1,000,000 16Group 8: IT Entrepreneurs What is Nestle Purina PetCare

18 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 17Group 8: IT Entrepreneurs

19 Category 3 Business Terminology For $1.00 What is a sole proprietorship? 18Group 8: IT Entrepreneurs

20 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. 19Group 8: IT Entrepreneurs

21 Category 3 Business Terminology For $100,000 What is limited liability? 20Group 8: IT Entrepreneurs

22 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. 21Group 8: IT Entrepreneurs

23 Category 3 Business Terminology For $1,000,000 What is a Federal Employer Identification Number or a Tax Identification Number? 22Group 8: IT Entrepreneurs

24 What do you know about IT Entrepreneurs? 23Group 8: IT Entrepreneurs HC

25 A. is someone who organizes, manages, and assumes the risks of a business or enterprise B. is an agent of change C. 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 D. who expands the size of the economic pie for everyone What do you know about Entrepreneurs? 24Group 8: IT Entrepreneurs Library Economics Liberty, HC All of the above

26 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” Definition of Entrepreneur 25Group 8: IT Entrepreneurs HC

27  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  Primarily, advent of information technology companies have made this happen Importance of IT Entrepreneur 26Group 8: IT Entrepreneurs “How Information Technology Entrepreneurship has Changed the World”, HC

28 Importance of IT Entrepreneur (cont’d) 27Group 8: IT Entrepreneurs Dow Largest Market ValueFounded Non-Dow Largest Market ValueFounded GE Microsoft IBM Intel Wal-mart Cisco Exxon Lucent Merck Pfizer Citigroup AIG AT&T MCI WorldCom Coca-Cola Bristol Myers Squibb Johnson&John son Dell Computer Proctor&Gam ble Bank of America “How Information Technology Entrepreneurship has Changed the World”, HC

29 Importance of IT Entrepreneur (cont’d) 28Group 8: IT Entrepreneurs Sector Market Share Utilities19%3% Energy18%6% Basic Materials17%3% Technology6%19% “How Information Technology Entrepreneurship has Changed the World”, HC Over 35 years, technology companies have outperformed and increased the market share over traditional industries.

30  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 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 Entrepreneurs in US Economy 29Group 8: IT Entrepreneurs “Entrepreneurs in the U.S. economy”, JB

31  Self-employed business owners. Roughly 8 % of the nation's households fall in this category. Entrepreneurs in US Economy (cont’d) 30Group 8: IT Entrepreneurs “Entrepreneurs in the U.S. economy”, JB

32  Entrepreneurs are wealthy, on average.  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 US Economy (cont’d) 31Group 8: IT Entrepreneurs “Entrepreneurs in the U.S. economy”, JB

33  Entrepreneurs are also more educated than other heads of households.  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 US Economy (cont’d) 32Group 8: IT Entrepreneurs “Entrepreneurs in the U.S. economy”, JB

34  Entrepreneurs most often work in professional practices  Law and medicine; contracting and construction; farm, agricultural services, and landscaping; and general retail and wholesale trade. 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 US Economy (cont’d) 33Group 8: IT Entrepreneurs “Entrepreneurs in the U.S. economy”, JB

35  Monthly Labor Review (December 2008)  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. Entrepreneurs in US Economy (cont’d) 34Group 8: IT Entrepreneurs “Monthly Labor Review, December 2008”, JB

36  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  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. Entrepreneurs in US Economy (cont’d) 35Group 8: IT Entrepreneurs “Monthly Labor Review, December 2008”, JB

37  “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  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. Outlook on Entrepreneurs 36Group 8: IT Entrepreneurs “Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal, JB

38  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. Outlook on Entrepreneurs (cont’d) 37Group 8: IT Entrepreneurs “Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal, JB

39  56% of respondents said they would trust small- business owners to guide the economy, while only 14% said they would trust members of Congress. Outlook on Entrepreneurs (cont’d) 38Group 8: IT Entrepreneurs “Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal, JB

40 “History has repeatedly demonstrated that new companies and entrepreneurship are the way to bolster a flagging economy” Outlook on Entrepreneurs (cont’d) 39Group 8: IT Entrepreneurs “Can Entrepreneurs Rescue the U.S. Economy?”, Wall Street Journal, JB

41  Myth 1 - Entrepreneurs are “orphans and outcasts”  Lonely Atlases battling a hostile world or anti- social geeks inventing world-changing gizmos Not true. They are a bit more independent, but still need business partners and social networks to succeed Myths about Entrepreneurs 40Group 8: IT Entrepreneurs “Global Heroes”, A special report on entrepreneurship, The Economist, HC

42  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 and found that Average age boss was 39 when he or she started. Number of founders over 50 was twice as large as that under 25. Myths about Entrepreneurs (cont’d) 41Group 8: IT Entrepreneurs “Global Heroes”, A special report on entrepreneurship, The Economist, HC

43  Myth 3: Entrepreneurship is driven mainly by venture capital  True in capital-intensive industries such as high- tech 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 Myths about Entrepreneurs (cont’d) 42Group 8: IT Entrepreneurs HC

44  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 Myths about Entrepreneurs (cont’d) 43Group 8: IT Entrepreneurs HC

45  Myth 5: Entrepreneurship cannot flourish in big companies  Jack Welch transformed GE into a collection of smaller entrepreneurial companies Myths about Entrepreneurs (cont’d) 44Group 8: IT Entrepreneurs HC

46 Ease of doing Business 45Group 8: IT Entrepreneurs Business RegionEase of Doing Business Rank Singapore1 New Zealand2 United States3 Hong Kong, China4 Denmark5 United Kingdom6 Ireland7 Canada8 Australia9 Norway10 Iceland11 Japan12 Thailand13 Finland14 Georgia15 Saudi Arabia16 Sweden17 Bahrain18 Belgium19 Malaysia20 Business RegionEase of Doing Business Rank Togo163 Cameroon164 Lao PDR165 Mali166 Equatorial Guinea167 Angola168 Benin169 Timor-Leste170 Guinea171 Niger172 Eritrea173 Venezuela174 Chad175 São Tomé and Principe176 Burundi177 Congo, Rep.178 Guinea-Bissau179 Central African Republic180 Congo, Dem. Rep.181 “Economy Rankings”, Doing Business, HC

47  BDC – Business Development Bank of Canada  Assessment/Entrepreneurial_self_assessment.htm Assessment/Entrepreneurial_self_assessment.htm  ARE YOU AN ENTREPRENEUR? 46Group 8: IT Entrepreneurs JB

48 Interviews IT Entrepreneurs that we talked to…. 47Group 8: IT Entrepreneurs JB

49 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 Entrepreneur List 48Group 8: IT Entrepreneurs I001.ASP I001.ASP, Viewed 04/09/ viewed 4/9/09www.salary.com 3 DEVIN LEONARD. Fortune. New York: Oct 15, Vol. 156, Iss. 8; p. 172 JB

50 Kent Plunkett - Background 49Group 8: IT Entrepreneurs  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” Kent Plunkett,CEO of Salary.com, interviewed in person by Abby Cave, March, 2009 AJ

51 ts/abtl_default.asp?tab=abt&cat=cat012 &ser=ser041&part=par078 Business Demographics Salary.com 50Group 8: IT Entrepreneurs 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 AJ

52 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 Brant and Brock Bukowsky - Background 51 Group 8: IT Entrepreneurs 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 I001.ASP I001.ASP, Viewed 04/09/093 2 Brock Bukowsky, Founder MRC, interviewed via by Craig Robbins, March 17, 2009 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 by Craig Robbins, March 15, 2009 CR

53  Founded  Online VA mortgage loan broker 2  Est. Annual Revenue - $15,000,000 2  Est. Employees –  Location – Columbia, MO 2 2 Business Demographics Mortgage Research Center 52Group 8: IT Entrepreneurs 2007 #96 1 Subprime Loan alternative src=adw, viewed 4/9/09 07/DEC/ BUSI001.ASPHTTP://COLUMBIATRIBUNE.COM/20 07/DEC/ BUSI001.ASP, Viewed 04/09/09 CR

54 Mark Cuban 53Group 8: IT Entrepreneurs JB

55 54Group 8: IT Entrepreneurs

56 CHILDHOODADULT  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  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 e- commerce transaction, $40 million for Gulfstream V jet 1 DEVIN LEONARD. Fortune. New York: Oct 15, Vol. 156, Iss. 8; p viewed March 14, 2009http://en.wikipedia.org/wiki/Mark_Cuban 3 Kristin Todd. Baylor Business Review. Waco: Spring Vol. 24, Iss. 2; p. 15 (1 page) Mark Cuban - Background 55Group 8: IT Entrepreneurs JB

57  Audionet founded, later became Broadcast.com in  Sports Webcasting  330 employees 2  $13.5 million in revenue for the second quarter  Sold to Yahoo for $5.9 billion in Yahoo! stock 2 1 Elizabeth Rathbun. Broadcasting & Cable. New York: Oct 4, Vol. 129, Iss. 41; pg. 26, 1 pgsBroadcasting & CableOct 4,  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, Vol. 156, Iss. 8; p viewed 4/9/09www.manta.com/coms2/dnbcompay_ft05tl. viewed 4/9/09 5 HDNet, Only All-High Definition National Television Network, Launches on DIRECTVHDNet, Only All-High Definition National Television Network, Launches on DIRECTV Business Demographics Broadcast.com HDNet 56Group 8: IT Entrepreneurs JB

58 IT Entrepreneur Jeopardy 57Group 8: IT Entrepreneurs HC

59 Personality Characteristics of IT Entrepreneurs 58Group 8: IT Entrepreneurs AB

60 Those in the Industry Say: 59Group 8: IT Entrepreneurs  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! AB

61  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 Those in the Industry say: 60Group 8: IT Entrepreneurs AB

62  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 viewed April 3, viewed April 3, 2009 Industry Data on Personality Characteristics 61Group 8: IT Entrepreneurs AB

63  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. “  viewed on April 2,  viewed April 9, Industry Data on Personality Characteristics 62Group 8: IT Entrepreneurs AB Thomas Jefferson

64 Personality Traits Entrepreneur you admire AdviceWhat keeps you up at night. Kent Plunkett Analytical, visionary, compelling communicator, strategist 1 Ted Turner – vision, sports and work achievement 1 Help others succeed and know when to fire someone. 1 difficulty developing someone and firing the person 1 Brock Bukowsky Competitive, passionate, caring, empathetic, faithful, Integrity 3 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, ADHD 2 People who do “game changing things” 2 Try many things. You will fail much more than succeed 2 1. Changes in industry 2. Firing people 2 Mark Cuban Competitive, outspoken, business adrenaline junkie 4 Bill Gates, Larry Ellison, Old school entrepreneurs 4 Know your product and environment better than anybody. 4 1.Family 2.Staying ahead of the tech. curve 5 Comparison of Personal Characteristics of the interviewees 63Group 8: IT Entrepreneurs 1 Kent Plunkett,CEO of Salary.com, interviewed in person by Abby Cave, March, Brant Bukowsky, Founder of MRC, interviewed via by Craig Robbins, March 15, Brock Bukowsky, Founder MRC, interviewed via by Craig Robbins, March 17, to-come-back-as-me/http://www.techcrunch.com/2008/09/09/mark-cuban-when-i-die-i-want- to-come-back-as-me/ 5 Mark Cuban, Serial Entrepreneur, interviewed via by Jerrod Brown On April 8, 2009 JB

65 Salary.comMortgage Research Center HDNet How did the business idea originate? Vision of Kent Plunkett 1 Helping a veteran get a VA loan. An from now CEO Nathan Long 6 Belief that the price of LCD TVs would decline and High definition would be mainstream 5 How was the business start-up funded? $300,000 from family and friends 1 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-per- click adds 3,6 Time Warner Cable, DirectTV, EchoStar, Charter, Insight, DishNetwork 4 What were some Challenges? 1. Getting people to see and believe the vision 1 2. Attracting and retaining quality employees 1 1. Getting people to take them seriously because of their age 6 2. Funding 3 1.Mark’s outspokenness 5 2.Radical ideas and stepping on toes of other big players 5 Comparison of Interview Businesses 64Group 8: IT Entrepreneurs 4 1 Kent Plunkett,CEO of Salary.com, interviewed in person by Abby Cave, March, Brant Bukowsky, Founder of MRC, interviewed via by Craig Robbins, March 15, Brock Bukowsky, Founder MRC, interviewed via by Craig Robbins, March 17, DEVIN LEONARD. Fortune. New York: Oct 15, Vol. 156, Iss. 8; p Viewed 04/09/09 6 JB

66 Attributes of successful start- up business 65Group 8: IT Entrepreneurs CR

67  Even though revenue is sign of success focus on profitability 4 th quarter of 1999 increased sales 157% to 650 million but also increased cost 1 Sydney Finkelstein. The Journal of Business Strategy. Boston: Jul/Aug Vol. 22, Iss. 4; p. 16 Attributes of Successful Start-ups 66Group 8: IT Entrepreneurs CR

68  Avoid extremely niche strategies 1  Do not focus on low cost, low price, low-margin strategy those are achieved by economies of scale in large companies 2 In 1999 pets.com spent $460 in advertising for every $100 dollars in sales 1 1 Sydney Finkelstein. The Journal of Business Strategy. Boston: Jul/Aug Vol. 22, Iss. 4; p Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun Vol. 51, Iss. 3; p. 211 Attributes of Successful Start-ups 67Group 8: IT Entrepreneurs CR

69  Successful startups almost always rely on distinct products or service differentiators 2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun Vol. 51, Iss. 3; p. 211 Attributes of Successful Start-ups 68Group 8: IT Entrepreneurs CR

70  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 2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun Vol. 51, Iss. 3; p. 211 Attributes of Successful Start-ups 69Group 8: IT Entrepreneurs CR

71  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 2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun Vol. 51, Iss. 3; p. 211 Attributes of Successful Start-ups 70Group 8: IT Entrepreneurs CR

72  Your competition will often not notice your startup or ignore it since your company is so small 2  Create advantages in size, customer position, and establish infrastructure 1  Startups have the flexibility to make dramatic changes in strategy sacrificing short term results in return for much better long term results 2 Netflix has over 100 shipping locations 1 Sydney Finkelstein. The Journal of Business Strategy. Boston: Jul/Aug Vol. 22, Iss. 4; p Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun Vol. 51, Iss. 3; p. 211 Attributes of Successful Start-ups 71Group 8: IT Entrepreneurs CR

73  Be able to deliver a 20-second elevator pitch and a 20- minute presentation that fully explains your company at an abstract level 2 Alan Davis, Eric M. Olson. Business Horizons. Greenwich: May/Jun Vol. 51, Iss. 3; p. 211 Attributes of Successful Start-ups 72Group 8: IT Entrepreneurs CR

74 How to start a business in Missouri 73Group 8: IT Entrepreneurs AJ

75  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 Starting a business in Missouri 74Group 8: IT Entrepreneurs AJ

76  Check the availability of the desired business name with the Secretary of State’s office  https://www.sos.mo.gov/BusinessEntity https://www.sos.mo.gov/BusinessEntity Do a name check 75Group 8: IT Entrepreneurs AJ

77  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 Determine which business structure best suits your business 76Group 8: IT Entrepreneurs AJ

78 Determine which business structure best suits your business 77Group 8: IT Entrepreneurs Each structure has unique registration requirements. Registration forms for each structure can be found on the Missouri Secretary of State’s web site at: AJ

79  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  By telephone at  By mailing or faxing Form SS-4, Application for Employer Identification Number, which can be printed from the web site pdfForm SS-4 pdf Obtain a Federal Employer Identification Number (FEIN) 78Group 8: IT Entrepreneurs AJ

80  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 pdfForm pdf Register for the appropriate taxes 79Group 8: IT Entrepreneurs AJ

81  State permit search  rch.aspx rch.aspx  Local permit search (check with city, county and area health agency)  y_Search.aspx y_Search.aspx Obtain any necessary permits relevant to your business 80Group 8: IT Entrepreneurs AJ

82 IT Entrepreneur Jeopardy 81Group 8: IT Entrepreneurs AJ

83 Wrap-Up 82Group 8: IT Entrepreneurs JB

84  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. Team Deduction 83Group 8: IT Entrepreneurs JB

85 84Group 8: IT Entrepreneurs Thank you for your time and remember, you may be an ENTREPRENEUR! JB

86 Questions? 85Group 8: IT Entrepreneurs

87  viewed April 16,  viewed April 18, 2009.www.jackmwilson.com/eBusiness/ITE.htm  viewed April,18, 2009.http://findarticles.com/p/articles/mi_m1153/is_12_130/ai_n  viewed April, 2009.www.asiaing.com/monthly-labor-review-december-2008.htmlKelly  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.  viewed April 18, 2009.http://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy  viewedhttp://blogs.wsj.com/independentstreet/2008/10/02/can-entrepreneurs-rescue-the-us-economy  April 18,  viewed April 18, 2009.http://www.doingbusiness.org/economyrankings  viewed April 9, 2009.www.salary.com  viewed April, http://columbiatribune.com/2007/Dec/ Busi001.asp  Leonard, D. (2007), “Mark Cuban May Be a Billionaire, but What He Really Needs is Respect,” Fortune, Vol. 156, Iss. 8, pp  Kent Plunkett, CEO of Salary.com, interviewed in person by Abby Cave, March,  viewed April 9, 2009.http://www.manta.com/company//mmipedx  8, viewed April Resources 86Group 8: IT Entrepreneurs

88  Brock Bukowsky, Fonder MRC, interviewed via by Craig Robbins, March 17,  Brant Bukowsky, Founder of MRC, interviewed via by Craig Robbins, March 17,  i001.asp, viewed March 14, 2009.http://columbiatribune.com/2007/Dec/ BUs i001.asp  viewed April 9, 2009.http://www.mortgageresearchcenter.com/b/mrc.html?src=adw  viewed March 14, 2009.http://en.wikipedia.org/wiki/Mark_Cuban  Todd, K. (2006), “Miracle Marketer: Mark Cuban,” Baylor Business Review, Vol. 24, Iss. 2; pp  Rathbun E. (1999), “Cuban: Embrace the Web,” Broadcasting & Cable, Vol. 129, Iss. 41; pg. 26.  viewed April 9, 2009.http://library.dialog.com/bluesheets/html/blO636.html  viewed April 9,  HDNet, Only All-High Definition National Television Network, Launches on DIRECTV, viewed April 9,  viewed March 14, 2009.http://www.techcrunch.com/2008/09/09/mark-cuban-when-i-die-i-want-to-come-back-as-me/  Mark Cuban, Serial Entrepreneur, interviewed via by Jerrod Brown on April 8,  viewed March 14, 2009.http://www.cedmagazine.com/hdnet-nets-time-time-warner-cable-deal.aspx  Davis, A., and Olson, E. (2008), Business Horizons. Greenwich. Vol. 51, Iss. 3; p  Finkelstein, S. (2001), The Journal of Business Strategy. Vol. 22, Iss. 4; p. 16. Resources Continued 87Group 8: IT Entrepreneurs

89   Shefsky, Lloyd. (1996), Entrepreneurs Are Made Not Born, Glencoe/McGraw-Hill  viewed April 3, 2009  entrepreneurs.htm, viewed April 3, entrepreneurs.htm  viewed on April 2,  viewed April 9,  viewed April       viewed May 3, Resources Continued 88Group 8: IT Entrepreneurs


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