Resources video case: college entrepreneurs doing good and making money

College Entrepreneur

What lessons about being a successful entrepreneur did you learn from Ryan and Aaron?

Perhaps the most salient lesson to come from the case study at the center of this discussion is the notion of properly positioning one's self in the marketplace so as to capitalize on an existing but untapped area of need. Indeed, for Ryan and Aaron, a driving force behind the inception of iContact would be the recognition of an as yet unfulfilled need in a broader market. Particularly, by noting the challenges before small companies attempting to reach global buying audiences, iContact would be conceived as a way to create direct marketing channel mailing lists on the behalf of said companies. We may suggest that the greatest reason for their tremendous and rapid success was their capacity to identify an area in which few competitors existed and in which their naturally existing skills could be put to a profitable use. This would allow the young entrepreneurs to almost immediately fill a gap in the business services market, creating a valuable resource for smaller companies. By establishing themselves in a niche with few notable competitors, Ryan and Aaron would find an access point into the business marketing sector at a decidedly low cost of entry.

2. Who are the stakeholders of iContact and how are their needs balanced by the company?

It is important to note that Ryan and Aaron were able to enter a market with decidedly low cost of entry. This is because the two young men were their own primary investors and therefore were the leading stakeholders. According to the case, "Ryan had about $12,000 to start -- or about $1,000 a month for the irst year. Sales in the first year reached $17,000, not enough to create much profit. Sales in the second year reached $200,000 and began doubling every year." (p. 26)

Though the personal risk of investing in one's own startup company is considerable, the second year's attainment of legitimate profitability would both validate this investment and create the freedom for reinvestment. Recouping their financial stake in the first year, the partners would ultimately be in a position of tremendous freedom to continue to grow the company. This would allow them to continue forward without seeking external investment or being forced to answer to any outside stakeholders. Truly, the only stakeholders to answer to beyond themselves would be clients, for whom the fulfillment of need would largely depend on the company's functionality, stability and improvement. Thus, the continued reinvestment of resources into the company would ultimately help to produce a firm capable of meeting the expanding business needs of its client base.

3. What most impressed you about these two entrepreneurs? Did they seem very different from the typical college student? Did they inspire you to think about being an entrepreneur yourself?