Page 65 - (DK) The Business Book

START SMALL, THINK BIG 63

See also: Beating the odds at start-up 20–21 ■ Luck (and how to get lucky) 42 ■ Hewlett-Packard
The Greiner curve 58–61 ■ Changing the game 92–99 ■ Small is beautiful 172–77
Bill Hewlett, born 1913, and
Dave Packard, born 1912, were
close friends who graduated
as electrical engineers from
Stanford University. After his
marriage, Packard moved into
an apartment in Palo Alto,
California, with his wife, while
Hewlett camped out in a shed
on the grounds. A garage
belonging to the property
became a decidedly low-tech
workshop. From 1938 to 1939
the garage served as home,
think tank, lab, office, and
production department. Bill and
David developed the 200A and
200B audio oscillators, which
became Hewlett-Packard’s
first products.
Believed to be the first US
Hewlett-Packard (HP) began life in These micropreneurs, who sell technology company to launch
Dave Packard’s garage. The company everything from homemade fashion in a garage, Hewlett-Packard
has restored the garage, which in 1987 items to antiques and secondhand was founded by the two
was named a California landmark as electronics, are risking very little friends on an investment of
“the birthplace of Silicon Valley.”
other than their own time—the just $538. Today the
capital outlay can be as much or as organization is one of the
backgrounds usually needed a full- little as they are willing to risk. The world’s largest technology
time job to meet the living costs micropreneur’s skill lies in spotting companies, with sales in
of themselves and their families. the right opportunity. In this way excess of $27 billion in 2012.
The garage is designated a
Without sufficient savings, few the business can be as small or
historic landmark and is listed
people could risk a new business large as time, and desire, allows.
on the United States National
venture in the 20th century, but For those who aspire to more
Register of Historic Places.
today, starting a business is easier. than running a business as a part-
time hobby, the lean start-up path
Micropreneurism is well trodden. Large companies
In the mid-2000s, the notion of a such as Hewlett-Packard and
micropreneur began to emerge. This Indian biotech Biocon both started
was an individual who ran a very in their founders’ garages. Passion
small business, often in addition to was key—with very limited capital,
full-time employment. The concept essential equipment was begged You have to really believe
gained popularity alongside the rise and borrowed; friends and family in yourself and know that, in
of e-commerce, which made it were used as (free) staff; and sleep the worst-case scenario, if it
possible to launch a commercial was sacrificed. The main resources doesn’t work out, you still
website and manage it nights and were time, skill, and tenacity. built something really cool.
weekends. Sales platforms, such as The path is not straightforward, Kevin Rose
those provided by eBay and the however, and requires a deep
Chinese online marketplace Taobao, commitment, often in the face
made it even easier, since they of failure. As Jeff Bezos warned,
dispensed with the need for a “invention requires a long-term
website or payment systems. willingness to be misunderstood.” ■