Tag Archives: Robinson Helicopter Company

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Trip Hawkins

Trip Hawkins for still scrapping because “optimism is essential” Imagine Henry Ford leaving Ford to start another car company, or Walt Disney establishing a realm beyond the Magic Kingdom. Trip Hawkins (who counts these two men among his heroes) has essentially done just that. He built Electronic Arts, of John Madden Football fame, into a powerhouse — then left it to start another business (which failed) and now another (which, thanks to ever-shifting industry forces, is likely to compete with EA). Hawkins originally left EA to focus his energies on a start-up he had launched called 3DO, which was trying to devise a better gaming console. Hawkins had hoped that his former firm would grant him exclusive rights to a hot new game, thus securing 3DO’s future. But after Sony unveiled the PlayStation in 1994, EA kept 3DO at arm’s length. “Chip manufacturing is expensive and political,” Hawkins says. “I should have known a company with deep pockets like Sony could pull the rug out from under us.” Eventually 3DO went bankrupt. Hawkins, now 51, shook off 3DO’s failure and soon launched another company, called Digital Chocolate. “D-Choc,” as he refers to it, creates games for cell phones. So far, over three million D-Choc programs have been downloaded. The company, which raised $20 million in financing, grossed $4 million last year. Some observers have wondered whether mobile gaming, with its rudimentary graphics, represents a technological retreat for Hawkins, but he says no. Others suggest that D-Choc’s prospects depend on how aggressively his old pals at EA enter the mobile gaming market. “I expect them to enter more directly either this year or next,” Hawkins says, but “rather than fight with them for market share, we are trying to blaze new trails.” Of his reverse entrepreneurial journey from industry icon to upstart, he adds: “It’s like being an explorer who discovered North America and then found out, hey, there’s South America and Antarctica, too.” Lora Kolodny Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Ray Kurzweil

Ray Kurzweil Kurzweil Technologies and other companies because he is Edison’s rightful heir At age 17, Ray Kurzweil appeared on TV’s I’ve Got A Secret with Steve Allen. His secret? The piece of music he played had been composed entirely by a computer he invented. That early acclaim only hinted at the remarkable body of invention that Kurzweil would establish over the next four decades.”I’m excited by the link between dry formulas on a blackboard and people’s lives,” he says. Starting in 1974, Kurzweil invented in rapid succession a device that recognized printed text; the flatbed scanner; and then a way for machines to connect text to a recorded voice. Combining all three technologies, he developed the Kurzweil Reading Machine to assist the blind. His first customer was Stevie Wonder, who called the reading machine “a breakthrough that changed my life.” Kurzweil sold that business to Xerox in 1980, and then he and Wonder collaborated on a music synthesizer (the partners and the product are shown, above, in 1986) that could replicate the rich tonality of a grand piano and other orchestral instruments. He sold that business in 1990. Now Kurzweil, 57, is working on technology to help hedge funds execute trades based on instantaneous readings of the market. Though they may seem wildly eclectic, Kurzweil’s businesses rely on one basic theme: pattern recognition. “I gather as much data as I can to develop patterns at every different level,” he says. Kurzweil’s ability to channel that notion into great businesses, time and time again, is itself a pretty remarkable pattern. Adam Hanft Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Mike Lazaridis

Mike Lazaridis Research in Motion because someone had to stand up for all those frustrated engineers Mike Lazaridis, whose company launched the BlackBerry in 1998, developed his philosophy of innovation as an intern at Ontario’s Control Data in the early 1980s. He often saw the engineers butt heads with the marketing department. The former felt their cutting-edge ideas for products were squandered; the latter felt those new products needed to be simplified to attract customers. No doubt that tension exists to some degree at every tech company, but it was so pervasive at Control Data that most of the engineering staff eventually quit for the greener pastures of California’s Silicon Valley. The experience left a lasting impression on Lazaridis, now 44. “The kiss of death is when you allow marketing to dumb down innovations,” he says. Simplifying a product hardly encourages customers to purchase newer models, he adds. Under his guidance, Research In Motion (RIM) has nurtured engineers. The result? The BlackBerry, whose subscriber base doubled from one million to two million in the past year. To be sure, Lazaridis still faces thorny strategic issues. When Palm and others began sizing up the wireless messaging market, for example, RIM was forced to move quickly to license software to phone manufacturers, including Motorola and Nokia, to protect BlackBerry’s turf. Then there is the controversial patent-infringement lawsuit brought by a small U.S. company that could cost RIM tens of millions of dollars in royalty fees. In a legal maneuver that is innovative in its own way (although not entirely lovable), RIM is arguing that the patents issued in the U.S. do not apply to RIM because most of its hardware resides in Canada, even though most BlackBerry users are in the U.S. Undaunted, Lazaridis continues to champion technological advancement. Recently he ponied up $100 million (in Canadian dollars) in his own RIM stock to start a research institute in Ontario. Maybe that will coax some of those grumpy ex-Control Data engineers to return home. Amy Gunderson Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Julie Azuma

Julie Azuma Different Roads to Learning for offering hope and help to the parents of autistic children Julie Azuma, founder of online retailer Different Roads to Learning, talks quietly with her two employees in DRL’s Manhattan office. As befits a company that has tripled its revenue in the past five years, the atmosphere is purposeful. That is, until a delivery arrives and Mookie goes wild. But you can’t blame Azuma’s wheaten terrier for resenting the intrusion. Azuma’s business is in her home — and as much a product of her heart as her smarts. Back in 1994, Azuma learned that her daughter Miranda was severely autistic, following several heartbreaking years in which specialists failed to explain her obvious developmental delays. Already six when diagnosed, Miranda wasn’t talking. Azuma and her husband turned to applied behavior analysis (ABA), a now prominent but then little-known method for teaching language and social skills to autistic kids. Through ABA, Miranda learned to communicate basic needs. Azuma was sold on ABA, but it was nearly impossible to find appropriate flash cards and other educational tools. Azuma, who had previously worked in the fashion industry, saw an opportunity to start a business to help other families while working at home, close to Miranda and a younger daughter, Sophie. She scoured stores and catalogs for suitable materials, purchasing samples and tracking down distributors all over the world. Soon, she had created an online store stocking 30 ABA products. “I thought I’d make $30,000 a year,” Azuma recalls. Ten years later, DRL offers 250 items to a customer base of 22,000. Sales by DRL and a newer publishing arm, DRL Books, totaled $1.7 million last year. Azuma’s formula is simple: personal attention to her customers, many of whom are parents who seek her advice and support as they face the challenges of raising autistic children. She also addresses the practical end, with services like lightning-fast delivery. Proponents of ABA believe that it is most effective when children are very young, so “parents of autistic kids want it immediately,” she says. Mary Howley, a New Jersey mom whose daughter Kathy is autistic, raves about DRL’s service. “There were many times when my package appeared at my door less than 24 hours after ordering,” she says. “When I found out that the owner was a mom facing the same issues I was facing, I thought, ‘No wonder.” For a long time, Azuma and her staff handled fulfillment themselves. “We loved touching everything,” she says. Last year, the business added so many new products, however, that Azuma reluctantly had to farm out that function. So far she has been happy with the arrangement. With energy to spare, Azuma is poised for a new venture, which began when a doctor friend suggested extending her business to Alzheimer’s. “I told him to go away,” Azuma laughs. But the idea stuck, and this year she’ll launch a line of “age-appropriate” memory aids. She unveils some samples: large-piece puzzles of screen legends such as Humphrey Bogart and Katharine Hepburn. She also serves as the chair of the group Asian Women in Business, which she helped found. In 2002, Miranda moved from the apartment to a nearby ABA-based group home. Though she has yet to reach many of the milestones her parents hoped for at first, she continues to make progress. With Miranda always in her thoughts, Azuma says she finds her work “cathartic,” especially when customers’ young children experience breakthroughs. “It’s not just selling them something,” she says. “It’s sharing their problems and their triumphs.” Wendy Fried Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Richard Branson

Richard Branson Virgin Group because he’s game for anything. In fact, everything. Whatever else he may be doing at any moment (the “whatever else” here being preposterous understatement), Richard Branson is also cutting a figure. You’ve seen it. There’s the grin (not smile), the goatee he’s worn since decades before everyone else did, the still-leonine head of hair that even at age 54 gives him the appearance of always plowing through the wind like a man on the prow of some very sweet ship. He’s short, but people say you don’t notice it because he never stands in one place long enough for the necessary comparisons. He’s one of those fearless, twinkling guys you hear about who’s always certain that the next thing — the very next — well, that will be something else, that’ll be the best. Branson for better or worse is brio personified. Everything about him seems propelled. That figure he cuts is anything but irrelevant. The more you look, the more you realize it might be the most important of several important things about him. Not that Branson’s body of work isn’t admirable. Beginning with a student newspaper at age 17 and a record label to which he signed the Sex Pistols in his mid-20s, Branson has built the Virgin Group into an international conglomerate of some 350 companies, many of them still tiny but all of them combining for more than $8 billion a year in sales. We know, of course, about Virgin’s music businesses and transcontinental airline and pay-as-you-go mobile phone service — which the company claims has become the fastest business ever to reach $1 billion in revenue. Most of us have glimpsed newscasts about Virgin Galactic, Branson’s bid to take paying customers into space. And we’re all soon to hear incessantly about Virgin’s launch of a domestic air carrier in the United States, which Branson judges to be a miserably served market. But how many of us know about Virgin’s limousine companies and wine business and trains, and its enterprises that rent bikes, make cosmetics, operate bridal shops (Virgin Brides), run health clubs, sell holidays, offer balloon flights, and market lingerie (VirginWare — “sleek, smooth, and sexy underwear”)? Though it’s hard to picture anything Branson does as being underpublicized, only 10% of Virgin’s business is done in the States, so most of us here are bound to overlook the odd juice bar and manicure shop in the swelling Virgin empire. Branson can’t seem to stop himself, and he doesn’t appear to care how badly he gets flamed by critics (starting with the much-maligned 1984 launch of the now extravagantly successful Virgin Atlantic airline). Said one guru/academic, echoing many: “A brand can’t stand for music stores, airlines, mobile phones, colas, financial services, and on and on. There’s no brand on earth that can do that. That’s ego.” Branson shrugs. “Yeah, I know,” he says. “The conventional wisdom is you should specialize in what you know and never stray from that, but no other brand has become a way-of-life brand the way Virgin has. And it wasn’t us setting out to become a way-of-life brand, it was me continually being interested in learning new things. We’ve got people all over the world who are coming up with great new ideas, and trying them doesn’t actually cost us a lot relative to the overall size of the group.” So they try. In the process Virgin has developed a business method that Branson calls “branded venture capital,” whereby he starts and manages all manner of new companies under the Virgin name while partners provide most of the investment. On the February afternoon when Branson is explaining all this by phone he happens to be sailing into Antigua, his cell connection coming and going as he rounds some headland or other and then picks his way through yachts in Nelson’s Dockyard, which the seasoned Caribbean sailor will recognize as one of the partyingest of the Leeward Islands ports. Branson had Virgin colleagues aboard, and later that night would be sharing a spirited evening out with 15 or 20 of them, his notebook as ever alongside. “I keep a notebook in my pocket all the time,” he says, “and I really do listen to what people say, even when we’re out in a club at 3 a.m. and someone’s passing on an idea in a drunken slur. Good ideas come from people everywhere, not in the boardroom. “Anyway, it’ll be a really fun evening, I’m sure,” he says innocently, seeming genuinely unaware of whatever envy he might be triggering on the other end of the conversation. “I always have tried to make sure I work from an environment that’s pleasant and fun. If the chairman’s having fun, it’s easier for everyone else. “And if it’s fun, you’re going to keep going until you drop.” The afternoon’s expensive floating obstacles be damned, Branson was characteristically free with his thoughts as he talked. Here are excerpts from what he said: “The world is a massively more hospitable place for entrepreneurs than it was 20 years ago. In most industries it is virtually possible to think of the world as one country. All our expansion plans are overseas: China, India…. We’re really not interested in a new thing unless it can become global.” “Even the smallest, youngest companies should not be frightened to go overseas. The opportunities in the world are immense — China has a growth rate of 9% to 10% a year, and you should go there and participate in it and enjoy it. Enjoy it.” “Lavish praise on people and people will flourish; criticize people and they’ll shrivel up.” “Give people a second chance if they screw up. Even people who have stolen from us have become, when given a second chance, incredibly loyal and valued employees. I don’t know where I’d be if I hadn’t been given second chances.” “If you can run one business well you can run any business. There just needs to be a crying-out need for you to enter the marketplace. The time to go into a business is when it’s abysmally run by other people.” “Most of our businesses do succeed, but if something completely fails, then as long as we bow out gracefully and pay off all our debts, and nobody gets hurt, then I don’t think people disrespect Virgin for trying. The public appreciates someone having a go; it appreciates the attempt. Who’s been a success in life who hasn’t failed?” “It’s important for the company’s sake that the chairman not get bored.” “My general philosophy in life is you never really go wrong saying yes.” “I want Virgin to be as well known around the world as Coca-Cola.” It’s that last comment that too many observers have used to sum Branson up. And yet, even the Coke comparison does him inadequate justice and risks missing the point. Coca-Cola has never opened a business to fly passengers to the moon. Nor has it expanded into online auto sales. Or railroad operations. Or any of a hundred other things Branson’s appetite has led him to undertake. Will that appetite thin Virgin’s brand to worthless dilution? It’ll be a kick to watch and find out. But back to that figure the man cuts, because in the end it’s not the deliriously ambitious branding ploy or even the deliriously ambitious appetite that attracts us to Branson and braces us, and offers us inspiration. It’s something about the figure itself, the way it is not just sensible and straightforward but steadfastly alert and delighted and fun. When is Branson working? When is he not? It all appears so seamless and so authentically pleasing. Unlike many of our most vaunted and imitated entrepreneurs, Branson forever strikes one as not compulsive or haunted or even, strangely enough, driven — though no one ever questions his drive. No, instead he just keeps looking like he’s on the prow of that sweet boat, grinning because he knows a secret, happy because he doesn’t know exactly what’s next but is absolutely sure that it won’t be dull and will quite possibly be a good deal better even than that. Michael S. Hopkins Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Warren Brown

Warren Brown Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Four years ago, Warren Brown walked away from a job as a federal litigator to bake cakes. It all started on New Year’s 1999 when Brown, an able cook, resolved to become an expert baker as well. After work, he began to whip up cakes. He found that baking provided release from the workaday stress. Soon Brown fell into the habit of throwing dessert parties — “Friends were jumping on the bed,” they were so happy, he recalls. Their joy combined with his job dissatisfaction led Brown to take a leave of absence in 2000. He wanted to see if he could support himself as a baker. He subleased a small commercial kitchen and found customers mostly by word of mouth. This went well enough that he moved into a 600-square-foot storefront that he christened Cake Love. He funded the business with credit cards and then a $125,000 loan backed by the Small Business Administration. When Brown officially left his day job, Emily McCarthy, Brown’s friend since college, says she wasn’t shocked but did think it was brave. Today, Cake Love sells around 40 cakes per day at about $55 each. The sweet-smelling bakery’s walls are painted a warm yellow, and a huge picture window allows a view of the kitchen from the sidewalk, drawing in customers. The surrounding U Street corridor neighborhood is being rapidly gentrified, and the business seems to embody the vitality and style of the young new homeowners who are moving in. McCarthy believes Brown’s background further helps the business because in D.C. it seems that almost everyone is a lawyer. “They can live vicariously through Warren when they go to the bakery,” she explains. With about four of his 16 bakery employees present at any one time, a glut of baking equipment, and a steady stream of customers, Cake Love is easily crowded. Brown opened the Love Cafe across the street in 2002 to provide a little breathing room. The cafe, which has red brick walls and comfy chairs, serves sandwiches and soups as well as cake. On a recent afternoon, customers stopped to say hi to Brown, who sat (a rarity) wearing a Cake Love T-shirt and a colorful knit cap. For a baker, he has a slim, athletic build. Now 34, he plans to open several more locations in suburban D.C. this year. Though he spends more time managing than frosting cakes these days, he still bakes most mornings. He also works on new products such as Cake Love’s version of the all-natural energy bar. The business is successful enough that he has cleared his credit cards and can pay himself the same salary the government used to pay him. Brown’s bakery is even starting to generate buzz beyond the Beltway. He has appeared on Oprah and the Today show, for which he prepared a German chocolate cake with frosting that he says is less gooey and more coconutty. Co-host Ann Curry seemed to enjoy the cake a lot, prompting Katie Couric to say: “You know, this is really a compliment because Ann doesn’t eat during segments very often, and now she can’t stop.” It’s hard to imagine a legal brief achieving the same level of acclaim. Patrick Cliff Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Michelle Cardinal Tim O’Leary

Michelle Cardinal & Tim O’Leary Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Husband-and-wife business teams are common enough that they even have a nickname, “copreneurs.” When the arrangement works, it works well; when it doesn’t, a couple can be crippled both emotionally and financially. Michelle Cardinal and Tim O’Leary have come up with a novel way of doing the “for richer, for poorer” thing as business partners — they decided not to share ownership completely. Each spouse runs an independent company in the infomercial business, even though they work together all the time. Wife Cardinal, 37, is the CEO of Cmedia and husband O’Leary, 45, is CEO of Respond2. Together, the couple and their 100-odd employees have created spots for NordicTrack, KitchenAid, Stanley tools, the Songbird hearing aid, and those best of Johnny Carson DVDs that surged in sales after the comedian’s death in January. O’Leary’s team produces the infomercials; Cardinal’s group holds inventory for some of the product lines and manages the sale from pricing to buying airtime to telemarketing and fulfillment. “I always joke that we talk shop in the shower,” Cardinal says. (They also co-own two smaller firms 50-50). Interestingly, a wide gap in terms of revenue exists between the companies. Respond2 grossed $10 million last year, compared with Cmedia’s $100 million haul, half of which came from serving clients whose infomercials were not shot by Respond2. The remaining two firms kicked in an extra $10 million. “Michelle made more than I did last year,” O’Leary freely admits. The arrangement still suits them, Cardinal explains, because “our egos are too big to tell each other what to do. It only works because I have my thing and Tim has his thing.” That strikes Kathy Marshack, author of Entrepreneurial Couples, as a shrewd insight. “Lots of husband-and-wife teams won’t acknowledge their competitive personalities, so this sounds like an ideal setup because it levels the playing field for each one’s strengths,” she says. Plus, Marshack notes, it avoids a common copreneurial mistake: “Not paying the wife a salary.” In certain ways, Cmedia and Respond2 operate as one. They share an 18,000-square-foot headquarters in an old dairy festooned in Tonight Show memorabilia. Their websites are also noticeably similar, featuring the same breakeven calculator for potential customers. And one monthly executive summary tracks key numbers of both companies. On the flip side, the firms pay taxes separately, and Cmedia bills Respond2 for accounting and vice versa for Web maintenance. There is, however, one not-so-far-down-the-road issue that will test the arrangement. “For the first few years, I thought we wouldn’t have children,” says Cardinal, in an everyone-asks-that tone. “But we just built a new house with a nursery.” Patrick J. Sauer Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Michael Dell

Michael Dell Dell Computer for being brilliantly straightforward For Michael Dell, it all seems so easy. He just makes good PCs cheaply and sells them like curbside hot dogs, from his hands straight to yours, fast, with whatever fixings you want. The strategy is so simple and yet so effective. Consistently profitable, Dell Computer took in $47.3 billion last year, at the same time IBM sold off its PC business and Hewlett-Packard’s PC margins slid below 1%. Meanwhile, in 18 months, Dell’s printer line has already reached a third of the market share of HP, the industry leader. “Two years ago there were a lot of stories saying that Dell can’t succeed in the printer business because we don’t have retail stores,” gloats Dell, 40. “Now people say, ‘Wow, you should have done that five years ago.” His habit of thriving where others fail can also be seen in the huge new plant he’s building in North Carolina. Most competitors are moving overseas. He will create up to 8,000 jobs in return for big tax breaks and lower shipping costs to East Coast customers. Even sharing credit and control seems to be a breeze for Dell, who handed over the CEO title last year. “I was CEO for 20 years, now I’ll be chairman for 20 years,” Dell says. “Then we’ll see.” David H. Freedman Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Diane von Furstenberg

Diane von Furstenberg Diane von Furstenberg Studio for staging an elegant comeback Diane von Furstenberg faced a bitter quandary when she returned to the American fashion scene in 1990: Her signature product, the wrap dress, hung in the Smithsonian, yet no stores would carry it. “My brand meant nothing,” she says. “I had become a has-been.” The Belgian-born von Furstenberg had made her mark on the New York fashion world in 1972 with her versatile dress, which was appropriate for the office yet sexy enough for a night at Studio 54. During the next few years, she sold five million of them. Then the market became saturated, sales dried up, and she sold most of her licenses to avoid bankruptcy. “I lost control,” she says. She retreated to Europe. In 1992, the designer embarked on a comeback. She started Silk Assets, one of the first clothing lines for QVC. “It was tacky, but it gave me confidence,” she says. Then she founded Diane von Furstenberg Studio to design moderately priced apparel sold at upscale department stores. The latest wrap dress, for example, retails for $298. The line has been a hit with consumers and critics alike, and the business turned its first profit in 2003. For von Furstenberg, 58, whose fall 2005 collection features a Russian theme, success has been sweeter this time. “I was on the cover of Newsweek at age 29,” she says. “To do it again now, that’s even better.” Nadine Heintz Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture

About 2974 days ago E-Commerce

26 Most Fascinating Entrepreneurs: Mitchell Gold Bob Williams

Mitchell Gold & Bob Williams Mitchell Gold for creating a true comfort zone Comfort is the watchword at Mitchell Gold’s eponymous furniture business, which he (below, right) and Bob Williams (below, left) founded in the small manufacturing town of Taylorsville, N.C., in 1989. For them, comfort involves more than down feathers and velvet slipcovers, however. Gold and Williams have created a furniture plant that employees enjoy working in, an unusual notion in a county where, as recently as the 1980s, air-conditioned factories were rare. Mitchell Gold’s plant, in contrast, boasts an indoor walking track, a gourmet cafeteria, and on-site daycare facilities (in addition to AC). Shirley Roberts, an employee since 1991 who now oversees 127 workers in the cloth sewing room, says, “Mitchell does a lot to make our lives better.” Workers at neighboring businesses have benefited too. “Mitchell and Bob are always willing to give their employees benefits that nobody else has,” notes Cass Ballenger, a retired Republican congressman who owns a business in nearby Hickory, N.C. “In order to compete, other companies have begun to follow suit.” Of course, it takes more than happy employees to run a thriving operation at a time when many factories are slashing hours or shutting down completely. Gold expects to generate $100 million in sales in 2005. The business has posted average annual revenue increases of about 20% since 2000, compared with 3% in the overall furniture industry during the same period. Contemporary designs and the use of unusual upholstery fabrics have propelled the business. “When we started out, we noticed that a lot of people were wearing prewashed jeans,” Williams recalls. “So we started applying that philosophy to our upholstery: We look at what fabric people are wearing and put it on furniture.” Another key to success is working well with retailers such as Crate & Barrel, Restoration Hardware, and Pottery Barn. The trick, says Williams, is creating product lines that remain true to the Mitchell Gold philosophy while catering to each store’s style. Restoration Hardware, for instance, prefers the dramatic club chair look, while Pottery Barn likes casual couches. “Most of the time, I just come up with ideas, then figure out which customer would groove on that idea the most,” Williams says. Meanwhile, back in Taylorsville, Gold and Williams are quietly changing one other aspect of local business. When they founded Mitchell Gold there 16 years ago, they stood out among local business owners because they are partners in life as well as in business. Once, a worker made a homophobic comment on the factory floor, but he was shushed by a well-respected older woman who worked as a plant inspector. “When Bob and I first founded the business here, we were a little naive,” Gold asserts. “But there’s been a lot of learning at this factory, and I think people respect us. People respect us because we respect them.” Nadine Heintz Martha Stewart, Martha Stewart Omnimedia because she took one for the team Richard Branson, Virgin Group because he’s game for anything. In fact, everything. Michael Dell, Dell Computer for being brilliantly straightforward Jim Sinegal, Costco because who knew a big-box chain could have a generous soul? Diane von Furstenberg, Diane von Furstenberg Studio for staging an elegant comeback Julie Azuma, Different Roads to Learning for offering hope and help to the parents of autistic children Fritz Maytag, Anchor Brewing for setting limits Ray Kurzweil, Kurzweil Technologies and other companies because he is Edison’s rightful heir Craig Newmark, Craigslist for putting the free in free markets Jack Mitchell, Mitchells/Richards because his family business makes an art of customer service Frank Robinson, Robinson Helicopter for whipping an entire industry into shape Mark Melton, Melton Franchise Systems for giving immigrants their shot at the American Dream Michelle Cardinal & Tim O’Leary, Cmedia and Respond2 for rewriting the rules for husband-and-wife teams Mike Lazaridis, Research in Motion because someone had to stand up for all those frustrated engineers Trip Hawkins, Electronics Arts and Digital Chocolate for still scrapping Warren Brown, Cake Love and Love Cafe because only in America will someone quit a secure job as a lawyer to start a bakery Muriel Siebert, Muriel Siebert & Co. for being a notable first with a worthy second act Chuck Porter, Crispin, Porter + Bogusky for verging on reckless Katrina Markoff, Vosges Haut for setting a completely unreasonable goal for her business Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service for showing the power of the peer group Victoria Parham, Virtual Support Services for serving as a mentor to military spouses Tom LaTour, Kimpton Hotels and Restaurants for staying at fleabag hotels so that we don’t have to Mitchell Gold & Bob Williams, Mitchell Gold for creating a true comfort zone Izzy & Coco Tihanyi, Surf Diva for kicking sand in the face of conventional wisdom Tony Lee, Ring Masters for saving 16 jobs, including his own Rueben Martinez, Libreria Martinez Books and Art Galleries for simultaneously building a business and nurturing Latino culture