Dell Computers – a Brief History of Michael Dell
Dell Computers? You might be coming from another planet if you haven’t heard about them. Talking about PCs, they are one of the greatest company in the world. For more than a quarter of a century, Dell has helped many companies and people to realize their dreams, by delivering quality technology solutions. But how all of this started? Here you will see another great business idea, made happen…
This is one really inspiring business story about a man who started with nothing, and became a billionaire! When saying nothing, I am talking about money, because Michael Dell had all that was needed – great business ideas in his head and commitment. (Lesson: These two features are very common for most of the famous entrepreneurs).
Michael has always been a very committed guy. He created a simple plan and pursued it, doing everything within his power to accomplish it. The only thing he did was achieving his goals. He earned his first $1 000 bucks at the age of 12, by selling stamps to the people in the block. Think about how many stamps one has to sell to earn a thousand dollars, having in mind that the price of a stamp is measured in cents and the profit is a portion of the price. This is the power of commitment! Later on, he switched to selling newspaper subscriptions for one of the biggest paper media of that time – Houston Post. This further improved his selling skills and his confidence. At the age of 16, Michael was driving a modern for this time BMW, purchased with his profits.
When Michael was 15 years old, he got the most important present in his life – an Apple computer. But instead of using it, he broke it apart to study how it was built. Later he purchased an IBM computer, which had the same destiny. This way he learned a lot about assembling computers.
The young Dell planned his whole life when he was 20 years old. He knew exactly what he wanted and he got it! Knowing what you want is of high importance because otherwise you just don’t know what to achieve. This helped Michael a lot because what he had to do, was just to attain his objects.
Michael’s parents wanted his son to become a doctor but the son had a different opinion. He spent some time in the University of Texas, studying medicine but soon he realized that he was chasing someone else’s dream. In 1984, he started his own company – “PC’s Limited” (which in 1988 will become Dell Computer Corporation) with an investment of only $1000. Could anyone imagine, that this investment was the beginning of the multi-billion company – Dell Computers? Showing a half year profit of 200 000 dollars to his parents helped him persuade them that medicine was not his fate… This was when he quit college.
The young entrepreneur always stayed focused, working on his business, which was to assemble computers according to the specific needs of his customers. This was a great entrepreneurial idea because no one was doing direct sales of custom computers at that time. Dell has created a completely new way to sell, which defines him as a pure entrepreneur. There was a big demand for such solutions because he was selling at a lower price exactly what his customers wanted. Occasionally, mom and dad liked the idea and also helped with the expansion of the young company with a cash injection of $300 000.
Dell’s simple plan never changed – selling quality computers to his customers and serving them well. Just in a few years, he reaped a profitable harvest from his work. In 1992 Dell Computers entered in the Fortune’s list of the 500 biggest companies on Earth and Michael Dell became the youngest Chief executive officer (CEO)of such a company.
Another great idea helps a lot with the development of Dell Computers – Gigabuys.com – a simple site selling computers online. Today there are millions of such sites, but in 1996 when it was created, none of the big competitors was selling online. Great simple and Giga effective idea.
The story here is another nice example of that you don’t need money for becoming successful. As you see only $1000 investment was needed a multi-billion company to be created. What really matters is the commitment combines with some good entrepreneurial business ideas.