Many people are familiar with the name Michael Dell, but how did he start his business? Michael Dell began his business in his college dorm room at the University of Texas at Austin. He started out by selling personal computer kits to students. He then began to offer custom-built computers and eventually became one of the largest computer manufacturers in the world.
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Michael Dell’s early life and education
Michael Dell was born in 1965 in Houston, Texas, and grew up in a middle-class Jewish family. He showed an early interest in computers, and when he was 15 he started a software company called PC’s Limited with $1,000 of seed money from his parents. PC’s Limited eventually became the computer manufacturer Dell Inc., one of the world’s largest and most successful technology companies.
Dell attended the University of Texas at Austin but dropped out after his freshman year to focus on his business. In 1992, at the age of 27, he took Dell public with an initial public offering (IPO) that made him a billionaire. Today Dell is worth an estimated $23.5 billion dollars.
Michael Dell’s first computer business
In 1984, at the age of 19, Michael Dell started a computer business in his University of Texas dorm room. He began by selling computer upgrades and kits, later moving into selling complete systems. In 1985, he dropped out of university to focus on his business full time, and within four years Dell’s company had become a $6 million business.
Michael Dell’s early successes
As a teenager, Dell started his first business selling newspaper subscriptions door-to-door in Houston, Texas. He later moved on to reselling computer supplies out of the trunk of his car. Michael Dell’s big break came in 1984 when he was able to secure a contract to supply PCs to the US military. From there, his business grew rapidly, and by 1992 he was named “Entrepreneur of the Year” by Inc. magazine.
Michael Dell’s move into the PC market
Michael Dell’s move into the PC market came about as the result of a frustrating experience he had while trying to purchase a computer for himself. At the time, the only way to get a computer was to buy it from a company that assembled and sold them as complete units. This meant that the customer had no say in what components were used, and it also meant that the price was significantly higher than it would have been if the customer had been able to buy the components separately and put them together themselves.
Dell saw an opportunity to provide a better experience for customers by allowing them to customize their computers according to their needs and budget, and then assembling and selling the units directly to them. This business model quickly took off, and Dell became one of the leading vendors of PCs in the world.
Michael Dell’s expansion into enterprise computing
Michael Dell founded Dell Technologies in 1984 with a simple vision and business concept – that personal computers could be built to order and sold directly to customers. This direct business model, coupled with an unwavering commitment to customer service, quickly positioned Dell as a leader in the burgeoning PC market. By 1992, PC’s Limited had surpassed Compaq Computer Corporation to become the largest seller of PC systems in the world.
In 1996, Mr. Dell took the company public as Dell Computer Corporation (NASDAQ: DELL) with an initial public offering of $8.50 per share, raising $301 million. Mr. Dell remained CEO of the company until 2004, when he assumed the role of chairman and chief executive officer. Kevin Rollins, previously president and chief operating officer, was named CEO. In 2007, Mr. Dell again became CEO and Mr. Rollins assumed the role of vice chairman. In 2013, Michael S. Dell returned as CEO and Mr. Rollins resigned from his position as vice chairman but remained a director on the Board until his retirement in September 2014.
Michael Dell’s return as CEO
In 2007, after a four-year hiatus, Michael Dell returned as CEO of the company he founded in his University of Texas dorm room in 1984. He is credited with starting the direct marketing of PCs to consumers, a model that revolutionized the PC industry and changed the way people purchase computers.
Dell took the company public in 1988 and by 1992, it was listed on the Fortune 500 list of America’s largest companies. In 1996, Dell became the youngest CEO ever to be ranked #1 on Fortune magazine’s list of America’s most admired companies.
During his time away from Dell, Michael Dell started a private investment firm, MSD Capital, which has invested in a number of companies, including real estate, restaurants, and tech startups.
Michael Dell’s philanthropy
Michael Dell has been involved in a number of philanthropic endeavors over the years. In 1999, he and his wife, Susan, founded the Michael & Susan Dell Foundation, which is dedicated to improving the lives of children around the world. The foundation has since awarded more than $1 billion in grants to a variety of organizations, including Teach for America, the KIPP charter school network, and medical research facilities such as the Texas Children’s Hospital.
In addition to his work with the foundation, Dell has also donated millions of dollars to support disaster relief efforts and educational initiatives in developing countries. In 2010, he pledged $10 million to help rebuild Haiti after the earthquake that devastated the country that year. And in 2012, he donated $50 million to establish a scholarship program for students from Uganda and other African nations to attend college in the United States.
Michael Dell’s investments
Michael Dell’s Investments
Dell started his computer business in his college dorm room in 1984 with $1,000. He dropped out of the University of Texas at Austin to focus on his business, which quickly took off. By the early 1990s, Michael Dell was one of the richest men in America.
Dell didn’t just start a successful computer company; he also made some wise investments along the way. In 1992, he invested $30 million in Sun Microsystems, which turned out to be a very lucrative move. He also invested in Google in 2004, when the search engine was still relatively new. As of 2019, those two investments alone were worth more than $4 billion.
Michael Dell has also been generous with his wealth, donating hundreds of millions of dollars to charitable causes over the years. In 2010, he founded the Michael & Susan Dell Foundation, which focuses on improving the lives of children and families around the world.
Michael Dell’s personal life
Michael Dell was born in 1965 in Houston, Texas, and his family soon moved to a suburb, where he started a business mowing lawns at the tender age of 12. From there, he went on to sell newspaper subscriptions and stamps door-to-door. After attending the University of Texas at Austin for a brief period of time, he eventually dropped out to pursue his business full-time. What started as a simple mail-order operation out of his apartment quickly turned into a multi-million dollar enterprise.
Michael Dell’s legacy
Michael Dell is one of the most famous entrepreneurs of our time. He started his business in his dorm room at the University of Texas in 1984 and built it into a multibillion-dollar company. Today, Dell Technologies is a global leader in the tech industry, with products and services that touch almost every aspect of our lives.
But how did Michael Dell get his start? What made him decide to start his own business?
The story goes that Michael Dell was a freshman at the University of Texas when he bought an IBM personal computer for himself. He was fascinated by the new technology and quickly learned how to take it apart and put it back together again. He soon realized that he could build computers that were better than the ones being sold by the major companies at the time.
So, armed with just a credit card and $1000, Michael Dell started building and selling custom-built computers out of his dorm room. He quickly found success and within a few years had turned his small operation into a multi-million-dollar business.
Today, Michael Dell is still involved in his namesake company, but he also uses his success to give back to others. He has given away millions of dollars to charity and has even set up a foundation to help support entrepreneurship around the world.