A "Case Story" By Chris Cononico
 

Why is this "case story" unique?

“If you are not a millionaire or bankrupt by the time you are thirty, you are not really trying.” -- Nolan Bushnell

This is not another story about some “dot.com bust” that raised millions of dollars in financing, but never had a chance of earning a profit.  Rather, it’s a "case story" about a group of Ivy League students, who stumbled upon a good business idea, scratched and clawed to establish it, but inevitably failed. Our company’s downfall wasn’t due to some bursting “Internet bubble,” but stemmed from fundamental leadership mistakes made by its founders.

I think this story fulfills a need in college business curriculums, whereby the plight of student entrepreneurs is often overlooked. At most schools, young entrepreneurs are seldom featured in case studies or invited as guest speakers. Instead, students are bombarded with tales of middle-aged CEOs who never had been college entrepreneurs, or who had forgotten what it was like to be one.

Understandably, it’s more impressive sounding to introduce the founder of Staples than some 20-year old student running a three-person company, but maybe it’s more relevant for aspiring entrepreneurs to hear from speakers self-employed at the same age. After all, most young people don’t have a Rolodex of business contacts, 20 years of industry experience, plus a wife, child, and mortgage to support. On the contrary, they are inexperienced, rebellious, and driven to succeed at a young age.

I am compelled to share my story because I think most failed entrepreneurs choose to lick their wounds out of the spotlight. Consequently, many business programs are left to present a lopsided view of entrepreneurship, whereby the victories get more attention than do the failures.  I think it’s critical for students to hear from failed entrepreneurs and benefit from their lessons learned, while witnessing a more balanced portrayal of entrepreneurship.

Finally, I hope this manuscript facilitates classroom discussions about business ethics, values, purpose, and corporate governance.  I hope readers can appreciate how "character" is critical in determining a founder's “success.” Likewise, I hope students see the necessity of instituting controls throughout an organization, even on the decisions of the founders.
 

Copyright  2005 by Chris Cononico
All rights reserved. No part of this manuscript may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the author, except by a reviewer who may quote brief passages in a review.