Founders
Episode 385 #385: Michael Dell
Founders

Episode 385: #385: Michael Dell

Founders

Episode 385

#385: Michael Dell

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading Play Nice But Win: A CEO's Journey From Founder to Leader by Michael Dell and Direct From Dell: Strategies That Revolutionized an Industry by Michael Dell.

This is one of the most extraordinary founder stories you will ever hear. Michael Dell started his company with $1000 when he was 19 years old. The revenues for the first 16 years of Dell look like this:

1984 $6M

1985 $33M

1986 $67M

1987 $159M

1988 $258M

1989 $388M

1990 $546M

1991 $890M

1992 $2B

1993 $2.9B

1994 $3.5B

1995 $5.3B

1996 $7.8B

1997 $12.3B

1998 $18.2B

1999 $25.3B

Dell had been profitable for every quarter of its existence. By 2012 the story had changed. The consensus was that Dell was dead. Michael Dell certainly didn't think so — and besides—he was incapable of giving up on the company that bears his name. As he said at the time "I will care about this company after I'm dead!"  Michael takes his company private, completes the largest acquisition in technology history, and remerges perfectly positioned for the age of AI. Michael Dell has been working on his company for over 40 years and it feels like he's just getting started. In his autobiography he shares the most important lessons he's learned. It's a treasure trove for entrepreneurs and leaders.

This episode is what I learned from reading Play Nice But Win: A CEO's Journey From Founder to Leader by Michael Dell and Direct From Dell: Strategies That Revolutionized an Industry by Michael Dell.

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here.

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#385: Michael Dell

Introduction

"Carl Icahn was trying to take my company away from me. I was sitting at Carl Icahn's dining room table with Icahn and his wife, eating Mrs. Icahn's meatloaf. That evening was almost the precise midpoint in a nine month drama in which the personal computing company I started in my freshman dorm room at the University of Texas in 1984, the company with my name on it almost slipped away from me and then changed forever changing me along with it. I'd like to tell you that story and a couple of other ones."

Dell had enjoyed a pretty uninterrupted run of growth in revenue and profits and cash flow for almost two decades. But by 2005, Dell was beginning to hit serious headwinds. Personal computers and laptops, which accounted for roughly 60% of our sales, were no longer the rich profit center they used to be. We needed to build new capabilities, we needed to invest in new areas, and we needed to move fast.

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