It was a tough time in 1977. There was inflation, unemployment and political turmoil because of Watergate.
But such things didn't mean much for a group of programmers -- Bob Miner, Ed Oates, and Larry Ellison. They started a database software company called Structured Development Laboratories. Of course, the company would eventually be renamed Oracle Corp. (NASDAQ: ORCL) and grow into a multi-billion dollar powerhouse.
Well, this week at the popular Oracle OpenWorld conference, Larry devoted his keynote to the early days of the company (the picture on the upper right is the original 900-square foot office location).
What lessons were entrepreneurs able to carry away from his talk? Several solid concepts:
Study your market and competition: Larry spent much time reading journals and talking to experts. What were the hot technologies? Who were the key companies?
For example, Larry read an interesting article in the IBM Journal of Research and Development, which talked about relational databases. He thought it could be a killer technology. Besides, wouldn't the support of IBM (NYSE: IBM) make it legit?
"Smoke and mirrors" can be a good thing: As a small company, it's not easy selling complex technology to large organizations. So in those early days, Oracle needed to find clever ways to make it seem larger than it really was.Consider that the company called its first product version 2.0. Hey, who would buy version 1.0?
Hire super-smart people: Larry believes that his most important job was finding top-notch people. Interestingly enough, he would prefer having empty desks if he couldn't find the right people.
Little wonder that former Oracle employees have created such companies as PeopleSoft, Quest Software (NASDAQ: QSFT), Siebel Systems and Salesforce.com (NYSE:CRM).
Be the eternal optimist: Larry never had any doubts. He was convinced of the market opportunity.
After all, when he started the company, he nearly had to foreclose on his home. But how could something like this be a problem for a true entrepreneur?
Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements
.











Reader Comments (Page 1 of 1)
3-20-2008 @ 7:23AM
Dr. Paul Otubusin, Esq. said...
Larry Ellison demonstrates the true American entrepreneurial spirit which is the hallmark of unfettered capitalism. In the face of seemingly insurmountable economic and business/professional obstacles, you must believe in yourself and your business objectives and strive on undeterred. With unabashed optimism and a Nietzchean will to succeed, success comes to those with sheer guts and confidence who persevere with persistent determination and hard work towards their goals.
11-19-2007 @ 9:17AM
Bud Hughes said...
If I was financed by the CIA, which Oracle was, succeeding would become easy due to the influence that the Investor could bring on domestic and foreign companies. It was common knowledge that that was where the funding for Oracle came from. Has every one forgotten?
11-22-2007 @ 7:54AM
Diana Kalandros said...
In an effort to provide an alternative to the slew of racy, and often vulgar messages young Americans are wearing on their t-shirts, my 13 year old daughter and I have just launched our own MORAL MESSAGE CLOTHING company; FAITHFULGEAR.
Our target market is anyone who wears a t-shirt and who wants to insipire others simply by broadcasting uplifting words like FAITHFUL, GRATEFUL, FORGIVE, CONVICTED, and so on.
[our first series of shirts-365 designs in all]
While we are confident the trend of wearing positive statements across our chests will infect the 30 somethings popluation, we are most concerned with reaching the youth culture to demonstrate that they need not wear garbage on thier shirts in order to get noticed or to be accepted by their peers.
Your suggestions and comments are welcome.
Our website is www.FAITHFULGEAR.com
For those who wish to take a look.
Diana & Sophia Kalandros
11-19-2007 @ 10:07AM
ivyemporiums said...
I get so tired of everybody with a hobby in the kitchen calling themselves entrepreneurs. I started an educational publishing company that took off until Richard Nixon pulled drug ed. money from the school budgets, the first Russian phototypesetting system that went down when a Democratic candidate angered the Soviets and they cancelled trade fairs, the first patented system to extract pure THC from the cannabis plant and the DEA wouldn't let the pharmaceutical firm make it because using cannabis as a feedstock for a legal drug might legalize cannabis, which is illegal because of the legal drug in it. We got Harvard's permission to make the famous Harvard chair and The Coop put us out of business with a cheaper on and connections to the alumni department ...
Three out of four REAL entrepreneurs go right out of business ... and I don't mean T-shirts with slogans or one more dry cleaner. If you want to help ME out, go to OilofTara.com and give you skin a good meal ... yes, I do it all at home and when it gets to 200 oz. a week, I'll be making enough to be perfectly happy. I've started five companies, I have a Harvard MBA - and all of the very big folks has lots of connections for money ... Land had his, Google had theirs, Ellison as well. I'm 63 and totally unemployable because I'm an entrepreneur and none of them made me rich, but I don't have a speciality and a lousy work history - President, President, President ...
Most of these so-called entrepreneurs couldn't fill out a DBA form, I wish the media would stop hyping work at home projects as "entrepremeuring" - the reall job is hard, gritty, boring, tedious and anything but exciting .. been there, done that.
FIRST GET THE MONEY - then ...
11-19-2007 @ 11:10AM
LtWacko said...
Man, learn to make omlettes from broken eggs. You are bitter. Obviously your education from an Ivy league school did you nothing. I am little more than half your age yet find successes in so many areas and people and I don't even have half your education. Okay, the language thing you got screwed on by politics. Couldn't you have used the same technology in other languages? Don't other countries deal with Russians? You wouldn't be the first to take an idea bred here to another country. It's done ALL THE TIME. The US is not the only country that produces prescription drugs. Why not take your technology overseas to a place where cannabis legal? Heck, there are a ton of "entrepreneurs" making money with cannabis linked products. Did these hippies outsmart a harvard grad? If you produce a drug overseas that works and works with great success, it would have made it's way over here eventually. Heck, if your Harvard educated brain was really working, the 30 years that have passed since, any one of your ideas would have made you some of the money you desire.
Yeah, sucks you lost the contract with the Harvard chair. Losing a contract to cheaper made products and better connections suck... but that happens all the time in the "real" business world. What did you do afterward? GIVE UP!!! That's the one thing every entrepreneur wouldn't do. Did you try and market your chairs elsewhere? Did you try and lower your production costs? Since you had the technology to make chairs, did you try making other types of chairs and marketing them in other markets? You know, Harvard is not the only place where people sit down...
Yes, the real work of "entrepreneuring" is hard work. If it wasn't, everybody would be rich who is attempting it. The people featured who you are apparently jealous of may not fit your idea of "entrepreneuring", but their financial success has touched the wrong nerve in you.
Let's see. Which has a greater chance a success in this blog. You who are bitter through most of your rant then trying to promote "another" skincare product... or the person selling fun t-shirts? Even a high school graduate can figure this one out. Maybe you should buy one of those positive message t-shirts. It might change your outlook and how people look at you....
11-19-2007 @ 11:07AM
Paul said...
Firstly, if trying to get capital, you would need to appear intelegent. Try using "spell-check" before you publish what you wrote, There are so many errors in your first paragraph, that I could barely understand your dialogue. Sorry, I don't mean to offend you, but correct spelling is a basic need when writing. We all don't have impeccable spelling aptitude; that's why they created "spell-check" for dummies like myself...
11-19-2007 @ 11:55AM
JMartin said...
This article started with this statement:
It was a tough time in 1977. There was inflation, unemployment and political turmoil because of Watergate.
Watergate turmoil in 1977? That all took place from 1972-Aug. 74 when Nixson resigned. I'd buy it if they said "...political turmoil...1975" but did Watergate have an effect on the country's economy in 1977?
11-19-2007 @ 1:08PM
iypgary said...
I thought this article was the stupidest thing I had read today - but then I read the comments posted. Other then the one advising the dude to try out his spell check - and the one b* slapping the Ivy Leaguer who is right on the edge of going Unibomber on us - most of the others are about on par with the article. Well, maybe the posts are more amusing - 'help me bankroll a dry cleaner Netflix' - but the article is total gaseous air.
11-19-2007 @ 3:52PM
Jay said...
Ellison is wrong Waregate was a minor ecom nomic influence > the major was the Gas crises & the Feds making believe pretending there was a Gasoline shortage -But that was enginerred by people in power who made trillions off of the dupe
11-19-2007 @ 3:42PM
Jay said...
Ellison is wrong Waregate was a minor ecom nomic influence > the major was the Gas crises & the Feds making believe pretending there was a Gasoline shortage -But that was enginerred by people in power who made trillions off of the dupe
11-19-2007 @ 3:38PM
JAYME said...
HI, MY NAME IS JAYME ROSENBACH. IM LOOKING FOR VENTURE CAPITAL FOR A START-UP FOR A METAL INJECTION MOLDING COMANY. IV BEEN DOWN MANY ROADS WITH NO LUCK, CAN ANYONE HELP ME TO GET ON THE RIGHT ROAD.
11-23-2007 @ 4:00PM
Joshua Marshal said...
I believe the article did give useful tips on a successful business. It is most commonly thought nowadays "you need money to make money" Which I disagree with. In 2004 I started my business with an investment of under $1,000 and now I is worth low to mid 8 figures. The best concepts you should obey in my opinion are the following: Look at what other LARGE business are doing (Even if it in a different field) Apply similar tactics to your business practice, Be part of your business, personally oversea all aspects to make sure you are happy with the current result before you are disappointed with the end result. Try new things ways and go out of your comfort zone. Meaning If you are used to doing everything pen and pencil, try a computer to manage; it has proven to work. Be unique, there must be an incentive for the customer, weather it is a better price, stellar service something must set you aside from other. Most importantly, CUSTOMER SERVICE MUST BE TOP NOTCH!
Joshua Marshal
Chief Executive Office
WeGotLites.com
12-09-2007 @ 1:42PM
Joe said...
Hey Paul...if you think spelling is important, check your post: intelligent is spelled this way, not as you spelled it: intelegent.
Anyway, sometimes speling duzn't alwayz kount:-)
11-19-2007 @ 10:47PM
Robert Finnimore said...
Website Developers are all scumbags
Robert Finnimore
tailgatetickets.com
11-19-2007 @ 11:15PM
drblu said...
If you are really interested in succeeding as an entrepreneur, it takes a few attributes which may (?) be learnable. First is vision and imagination, being able to see an idea and an opportunity that others have overlooked or not gotten to yet. Whether it's Larry Ellison or Ron Popeil, it all starts with an idea. Second is a sense of commitment and flexibility. Not being able to give up is different than not wanting to give up. The classic examples are Thomas Edison who tried 10,000 ways to make a light bulb before he found one that worked and Col. Sanders who tried for several years and went through several hundred rejections to find funding for his franchise idea before he managed to open his first restaurant. The guy with all the excuses who kept giving up because of 'circumstances' is an example of what doesn't make a good entrepreneur. The market is not the same everywhere and evven locally it changes all the time so you have to be quick, able to think on your feet, and ready to adapt to changes. It's not that hard if you love what you're doing and it's not that easy if you are used to taking directions and having someone else responsible for funding your paycheck. That brings up one of the other most important qualities and that is a sense of responsibility for yourself and for how you handle what happens to yourself and the people who are depend on you. Entrepreneurship can be a blast if you are wired for it, but like everything else worth doing, there is a skillset. Knowing and developing those skills makes it a lot easier to play and win the game.
11-20-2007 @ 11:38AM
carol said...
Good, common sense advice from Ellison -- know your market; act bigger than you are; surround yourself with smart people; be an eternal optimist. No big surprises there, but sound advice none the less.
Carol
Going Bonkers Magazine: The self-help magazine with a sense of humor!
www.gbonkers.com