18 Great Businesses - Pt. 2

This is a continued post from 100 Great Businesses Pt. 1

10. Microsoft

Bill Gates demonstrated his programming talent from a young age. After dropping out of Harvard, he and a friend opened the Micro-Soft store in New Mexico. They sold a program for the Altair, the first personal computer, and later worked with companies like Radio Shack, Texas Instruments, and Apple. They designed the Applesoft Basic program for Apple.

In 1980, they purchased the QDOS program, refined it, renamed it MS-DOS, and licensed it to IBM. By allowing IBM to create "clones" for the industry, a standard was established, while Apple did not grow with its superior Macintosh. After recognizing the advantages of Macintosh, Microsoft designed and released Windows 95, which sold 11 million copies in its first 5 minutes.

Microsoft struggled to compete against Apple and other competitors for a long time. Today, with its investment in ChatGPT, Microsoft can once again become the dominant force it once was.

11. Dell

Michael Dell, a visionary, recognized an opportunity at 18 years old to make computers based on components. By the time he was 24, he had 1600 employees and a net worth of $100 million. His talent for finding ways to sell was evident from a young age. In 1983, he bought IBM computers, rebranded and resold them, making $80,000.

Despite facing production problems initially, Dell surrounded himself with people who could handle administration. He emphasized issues such as the supply chain and feedback. These efforts led to Dell's net worth reaching $13 billion when he was 38. Today, at 58 years old, Dell has had a rocky past two decades with his company. In 2013, he bought the company from public shareholders to focus on long-term investments.

12. easyJet

Stelios Haji-Ioannou revolutionized the world of commercial aviation by launching his easyJet line in 1995. With the cost reduction and the separation of the paradigm that flying is a class thing, he offered flights at prices comparable to a pair of pants. This strategy led to rapid growth and crushed any competition that stood in his way.

After easyJet, the founder attempted to start other businesses on the internet, including trucks and hotels, but without much success. However, he is returning to the formula that worked for him initially. While easyJet, like many airlines, struggled during the pandemic, it is working on getting back on its feet.

13. Richard Branson (Virgin)

This eccentric entrepreneur dreamed of becoming an athlete from a young age. When an injury made that dream impossible, he tried his hand at different businesses until he found success with Student magazine, which he distributed by mail. He then moved on to selling music records, which proved even more profitable.

Eventually, the entrepreneur founded Virgin Group, a conglomerate offering various products and services in multiple markets, including airlines, cell phones, wine, cosmetics, soft drinks, and music stores. Each Virgin company operates separately, minimizing the risk that the failure of one will hurt the others.

14. eBay

In 1995, Pierre Omidyar had the idea of creating a site where people could sell things through online auctions. The site quickly gained traffic, which led to his provider charging a fee of $350 per month. In response, Omidyar began charging users, who agreed to the fees, and the site started to generate profits.

eBay's openness to opinions, austerity, and the decision to charge users (out of necessity) have made it one of the most recognized companies in the world. A curious detail is that the first purchase on eBay was a broken laser pointer, proving there is a market for almost anything.

15. BlackBerry

Although many other companies could have developed it, BlackBerry was the first device capable of sending and receiving real-time emails. Its founder, Mike Lazaridis, first came up with the idea when he was asked in 1987 to develop software for a wireless data network. His company, Research in Motion, launched the BlackBerry in 1999, which was wildly successful in the 2000s. We all know what happened later, and BlackBerry got left behind in the phone race. But their concept was a step forward that is now part of any phone experience.

16. XM Radio

Back in the 90s and early 2000s, radio coverage was impossible in many parts of the US before mobile internet was a thing. The concept of providing high-quality sound, a wide variety of stations, and coverage that reaches even the most urban areas of the United States had great potential. The idea originated from the American Mobile Satellite incubator and was adopted by AMRC when recognized as having commercial potential. However, the journey was challenging, requiring significant investment, pressure from investors, and difficult goals. The race with Sirius XM is well-documented as a competition to win a market that could only have one player. Eventually, the two companies joined forces and are still relevant for specific segments in the US.

17. Apple

In its early days, Apple founders Steve Jobs and Steve Wozniak designed the Apple I and Apple II, revolutionizing the personal computer market. After seeing the use of a mouse and windows in Xerox offices, they designed and launched the first Macintosh in 1984. However, the company suffered from stagnant innovation, and Steve Jobs and Wozniak resigned. While IBM embraced the market with Bill Gates' MS-DOS, Apple remained closed and secretive, even rejecting deals from Gates that could have been mutually beneficial. After suffering significant losses, Steve Jobs returned in 1996 and introduced new products such as the iMac, widescreen computers, and iPods. By focusing on new designs and technologies, Apple returned to its roots of innovation. Since the mid-2000s, Apple has grown to become the biggest company in the world by market capitalization. Apple products are now a norm in most of our lives.

18. Google

Sergey Brin and Larry Page created Google as part of a research project exploring the relationships between internet pages. Page found ways to build servers from cheap parts, so they began their venture. Despite knowing that their program was the best search engine, the company initially struggled financially, losing $6 million in 1999 and another $14 million in 2000. However, they turned a profit of $6 million in 2001, followed by $99 million in 2002 and $105 million in 2003. The efficiency of Google's search results was critical to its success.

When I read this book, in the mid-2000s, Google had 1,000 employees in California. Today, they have nearly 150,000.

Closing Thoughts

There is no recipe or formula for success. It depends not only on having an idea with potential profits but also on finding a way to finance and build the product and finding the time and way to launch it to the market. The reality is that there are many ways to stand out in the world of business, as many as there are businesses themselves.