38 HaverfordMagazine

It all started with a meal in Shanghai.Frankel says he isn’t sure what he ordered,because the economics/Spanish majorcouldn’t read the menu. But whatever itwas, it didn’t agree with him. “I was illbeyond belief,” he recalls. “I woke up ina world of pain.” He managed to get to apharmacy, only to realize he couldn’t com-municate what he needed. “That was alightbulb moment for me,” he says.

For Ryan Frankel ’06, his latest entrepreneurial endeavor was inspired

by some bad Chinese food.

Fords offer tips, advice

and lessons learned on

the road to launching

a new venture.

BY SAMANTHA DRAKE

Ryan Frankel ’06 is co-founderof PalmLing, a cell phone-based

interpreter service.

FRANKE

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OTO

: STE

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ENTREPRENEURISM101ENTREPRENEURISM101

at the Wharton School at the Universityof Pennsylvania, teamed up with fellowWharton grad Kunal Sarda to foundPalmLing (palmling.com), an interpreta-tion service that is available by telephone24 hours a day.

“PalmLing levels the playing field forinternational travel,” says Frankel. Theservice, launched this past February, pro-vides instant access to 1,300 trained trans-lators around the world, who commu-nicate directly with travelers or on theirbehalf. PalmLing is unlike a phrase bookor a machine-based translation servicebecause it allows for a live conversationwith interpreters, who can ask questionsas well as interpret slang and tone ofvoice, Frankel says. It also doesn’t requirea smartphone.

Another difference is that instead ofcorralling interpreters at a call center,PalmLing uses a “crowdsourced model.”Inbound customer calls are routed froma virtual call center directly to the phonesof interpreters around the globe who takecalls whenever they have spare time. Sofar, PalmLing offers translation in English,Spanish, Mandarin Chinese and Hindi,the languages most in demand by themarket, he says.

Frankel is just one of a number ofentrepreneurs to come out of Haverford,where many a Ford has hatched the con-cept for a first venture while still livingon campus. Helping to encourage thatkind of initiative has been the John C.Whitehead ’43 Fund in EntrepreneurialStudies, created by entrepreneur HerbertSlotnick ’44 to honor Whitehead. Sinceits launch in 1992, the fund has helpedplace more than 200 students in summerinternships related to entrepreneurship,small business, venture capital or finance.

In March, the fund helped support adaylong conference titled Fords and theEntrepreneurial Spirit, which broughtalumni speakers to campus to talk aboutthe challenges of striking out on one’sown. Sponsored by the Career Develop-

ment Office, the conference featured 12Ford panelists who talked about socialentrepreneurism, finding startup fund-ing and what’s required toweather the early years of anenterprise.

One thing is certain: Thebusiness world is unforgiv-ing for the unprepared. Atough economy winnowsout ill-planned schemes withDarwinian efficiency. The U.S. SmallBusiness Administration reports that552,600 new firms with employeesopened in 2009, and it predicts that, basedon previous figures, just half will survivefive years. The survival rate for one-per-son start-ups is much lower because theyare easier to open and close, accordingto the agency.

Though no two journeys are alike,the lessons learned along the way byalumni entrepreneurs, about money, peo-ple, the business world and themselves,are instructive.

The Calling ofEntrepreneurship

onathan McCoy (Mac)Gamse ’93 thought he want-ed to be a lawyer when he wasat Haverford, but a post-grad-uation stint at a large law firmended that ambition. Gamsewas then accepted into an analyst program at Goldman

Sachs. But he changed his mind at thelast minute and joined an educationalsoftware start-up instead.

“It was the worst financial decisionof my career,” says Gamse, the keynotespeaker at Entrepreneurial Spirit confer-ence. But it turned out to be the best lifedecision he ever made. Working for thestart-up, he learned the art of sales, a vitalskill for any entrepreneur. He also dis-covered that he possessed a real interestin education. Today, after working atother educational organizations, includ-ing Sylvan Learning Systems, and launch-

SPRING/SUMMER 2012 39

Frankel, who got his M.B.A.

J

Mac Gamse ’93, founder of MeritasLLC, an international network ofcollege-prep schools, was thekeynote speaker at the Fords and the Entrepreneurial Spirit conference.

40 HaverfordMagazine

ing several start-ups, Gamse is a respectedleader in curriculum development andthe founder and CEO of Meritas LLC(meritas.net), an international networkof college-prep schools based inNorthbrook, Ill.

Entrepreneurship is not necessarily alogical progression, Gamse says. “Lookat your career as a mission you want toachieve.” Figure out what skills you needto accomplish that mission, and then letnothing get in the way of developing orlearning those skills, he advises.

But regardless of what your missionis, you have to figure out how to fund it,Gamse points out. Entrepreneurs mustbe able to balance their passion for thework with the realities of the businessworld, he explains. Caroline (Isaacs) Latterman ’02 is

in the process of trying to do just that.Latterman founded Linguistic ConsultingLLC (linguistic-consulting.com) in NewYork to give teachers the tools to helpstudents, particularly African Americans,speak and write standard, or academic,English. Latterman, a linguistics major,taught in the Teach America program in Louisiana after graduation, and shesays other teachers’ negative approachto African American students’ use of non-standard English made her uncom-fortable. “I was really struck by howteachers talked to their stu-dents about their speech,” shesays. “We know that teachers’attitudes directly affect studentachievement.”

Latterman recently conduct-ed a six-week pilot program ata Harlem high school, workingwith ninth-grade English teachers onstrategies to evaluate students, help themimprove their English skills and show students they are valued. The significantimprovement in students’ writing skillsexceeded her expectations, she says.

Latterman acknowledges her servicescan be a hard sell, because the issue ofteaching African American students stan-dard English is a controversial subject.Fighting perceptions and misconceptionsis difficult, but even more daunting, she

says, is the continual hunt for financialresources to support her consulting busi-ness. “I knew it would be a lot of work,”she says. “I didn't know it would be sohard to find funding.”

As Latterman investigates variousgrant opportunities, she is working onher Ph.D. dissertation, which looks atways to change teachers’ attitudestowards non-standard English. “I wouldlike to expand at some point, but I’mnot there yet,” she says.

For Love and Moneyocial entrepreneurs, likeLatterman, face commonproblems. They have aburning desire to solve acommunity problem, suchas addressing an environ-mental issue or improvingthe education system, but

they usually have to do it without marketsupport. Social entrepreneurs must have“commitment and a real drive,” says JayCarlis ’99. “It’s going to take that internalmotivation to grind through the chal-lenges you will face.”

Carlis is vice president of the retail divi-sion of Radnor, Pa.-based CommunityEnergy Inc. (communityenergyinc.com)Founded in 1999, Community Energy’smission is to develop and market alterna-tive energy sources, such as solar and wind

power, to help protect the environment. Championing the environment and

helping develop clean, renewable energysources is a lofty goal. “There is anassumption that social good flows fromenvironmental benefits,” notes Carlis,who majored in sociology at Haverford.“But you have to prove that there is abusiness, that money can be made.” Inother words: “No margin, no mission.”

Community Energy recently venturedinto a new area: electric-vehicle chargingstations. The new project illustrates theissues that social entrepreneurs face.

The company opened a charging station in Wayne, Pa., this past Decemberwith funding from a state grant to explorea potential business opportunity, saysCarlis. Before people buy electric vehicles,they need to see that the charging stationsare available, he explains. The companyhas to attract users first, so it can attractinvestors.

The charging station, one of the com-pany’s three, won’t revolutionize the autoindustry any time soon, however. It made$30 in its first month of operation.

But while there may be less potentialfinancial reward and less instant gratifi-cation for social entrepreneurs, saysCarlis, “every day we get up, and weknow that we are trying to make theworld a better place.”

For any business, but particularly forsocial entrepreneurs, effectively commu-

S

Entrepreneurism 101

Jay Carlis ’99 helps develop and market alternative energy sources. But socialentrepreneurs need more than good intentions, he says: “You have to prove thatthere is a business, that money can be made.”

SPRING/SUMMER 2012 41

nicating an organization’s story is essentialto growth and can help raise funding,says Carrie Barnes ’97, the founder ofElise Communications in New York.“Having a core message as well as a com-pany mission are important,” says Barneswhose firm promotes primarily mission-based organizations or businesses witha product that benefits society. “Nikewanted to be the number one runningcompany in the world. They now havemarket share. Apple wanted to designintelligent computer products that wereessential to daily life. They are. I thinkentrepreneurs need to think along theselines. And they need to believe they haveno competition. If you are always lookingbehind you, you won’t get ahead. I neverlooked at other agencies’ progress. Ifocused on building my niche and dif-ferentiating Elise by offering services toa sector that was new and exciting: thesocial innovation field. There was lessmoney there, but more interesting work.”

Barnes, who previously co-foundedPortland, Ore.-based public relations andmarketing firm Bluedot Communications,

counts among her Elise clients the AspenNetwork of Development Entrepreneurs,which invests money and expertise insmall and growing businesses in devel-oping countries, and the LemelsonFoundation, which seeks to improve thelives of the poor through innovativedesign and invention. She also shapedthe messaging for and planned the launchof Paul Polak’s Out of Poverty: What WorksWhen Traditional Approaches Fail, gar-nering wide attention for the book andits first-time author.

Building visibility in the marketplaceor community is essential for any newoperation, but crafting that messagerequires focus, says Barnes. “Your ‘ask’needs to be clear from thebeginning. Time is preciousand your audience wants toknow what you’re selling and why within the first fewminutes, if not seconds, ofreading about you or inter-acting with you.”

As for her own entrepreneurial path,Barnes says she was inspired to launchher first company by her husbandPhineas Barnes ’98, a former entre-preneur who now works for a venturecapital firm. She also credits networkingas a crucial tool for getting ahead in the

work world. In fact, she got her first jobin communications, working for a pro-gram at MIT devoted to raising the visibility of inventors, through a BrynMawr alumna who’d advertised the postin a (now defunct) Bi-Co networkingnewsletter. Later, looking to expand hercontacts in the media industry, Barnescreated her own community by reachingout to Fords at Time, The Dallas MorningNewsand The Wall Street Journal. “I haveno fear. I can talk to anyone,”she says.

Seek Feedback and Hire Smartly

ntrepreneurs must take carenot to fall so much in lovewith their ventures that theydon’t heed feedback from others, especially potentialcustomers, cautions SkipWest ’77, president of MaxsaInnovations LLC (maxsainno-

vations.com), in Fairfax Station, Va. Founded in 2003, Maxsa specializes

in developing automotive accessories,solar lighting and consumer productssuch as electronic parking aids. West,who earned a political science/sociologydegree from Haverford, says one of his

E

Ty Ahmad-Taylor ’90, founderand CEO of FanFeedr, saysnot getting top shelf talent

can sink a new company.

Carrie Barnes ’97, founder of EliseCommunications in New York City.

primary focuses at the company is to zeroin on what customers really want.

Maxsa is a wholesaler and doesn’t selldirectly to consumers. So, to solicit inputon new or potential products, West meetswith buyers and distributors and attendsindustry trade shows. “Talk to your cus-tomers,” he advises. “I can’t stress thatenough.”

West also recommends telling as manypeople as possible about your ideas to seewhat they say. If enough people tell youthey aren’t interested in the product orservice, then forget about it, he adds.

While it’s obvious that adequate fund-ing and a solid customer base are crucialto launching a successful start-up, a tal-ented workforce is a sometimes-over-looked resource. In fact, failing to hirethe right people to power the businesscan doom an enterprise, say alumni entrepreneurs.

“Not getting top-shelf talent in yourcompany can sink it,” says Ty Ahmad-Taylor ’90, CEO and founder of Fan-Feedr in New York City (fanfeedr.com),an online source of aggregated, team-specific sports information. FanFeedr,launched in 2008, grew out of Ahmad-

Taylor’s desire to keep up with his SanFrancisco Bay Area sports teams.

The economics major, whose previousemployers included The New York Timesand MTV, launched the site, started outfinancing it himself (known as “bootstrap-ping”), and then enlisted a family friendas his first outside investor. With initialfunding in place, Ahmad-Taylor says, thebest move he made was hiring two talentedengineers right off the bat to handle thetechnical side of the business.

On the flip side, Ahmad-Taylor sayshis worst move was hiring the wrongperson and then keeping thatperson six months longerthan he should have. The mis-take hurt team morale, but itconfirmed the necessity ofinvesting his time and energyin recruiting the right people.

Selecting people who willfit in with the company’s goals and cul-ture is a huge part of running a company,agrees Nick Farina ’10, CEO of JetZet(jetzet.com), a social network for frequenttravelers that’s headquartered in theChicago area. Farina, who received aWhitehead Internship at Haverford, start-

ed his first business as a high school stu-dent and later launched Voltage Digital,an advertising and marketing agency.

Farina points out that the head ofthe business sets the tone for the rest ofthe company. Working for a start-up hasits drawbacks—low pay, long hours—“so you have to create a culture that isexceptional.” The leader needs to makepeople feel valued and excited by thework, he says.

Don’t Go It Aloneou can’t learn everything byyourself,” says Mac Gamse,who urges new entrepreneursto seek all the help they can.Partners, mentors, seniormanagement and spouses canall contribute valuable insightand support. “People put way

too much pressure on themselves to haveall the answers,” says Gamse. The truthis, the higher up you get in an organiza-tion, the less control you have. As a CEO,you don’t need to have all the answers,but you do need to know what the nextquestion is, he says.

Entrepreneurs must choose who theyare going to work with wisely, and thatgoes for business partners in particular,says Jennifer Houser ’90, the NewYork-based founder of the UpstartBootcamp website, online courses andbooks. The Upstart Bootcamp business(upstartbootcamp.com), which offersentrepreneurs advice and guidance, grewout of Houser’s frequent discussions with other start-up founders. “I realizedfounders face a lot of the same issues,”she says.

Houser launched her first start-up—a café in the north dorms—as a sopho-more economics major after she and herroommates lamented the lack of gather-ing places on campus at the time. “Thestudent center wasn’t there back in theday,” she says. The student-run, nonprofitcafé opened with funding from theadministration and soon became a pop-ular gathering place. Since then, Houser,who has an M.B.A. in new product and

42 HaverfordMagazine

Entrepreneurism 101

Y

Nick Farina ’10 saysleaders of start-ups

must make employeesfeel valued and

excited by the work.

venture development from MIT SloanSchool of Management, has started fivecompanies and raised $40 million fromventure capitalists and angel investors.Her last startup, Motionbox (a consumervideo-sharing company) was bought byHewlett-Packard’s Snapfish service.

“Partners are so important in startinga business; I highly recommend it,” saysHouser, whose partner in that café ven-ture at Haverford was her roommate,Karen Tenkhoff ’90, who continues tobe a trusted friend and business collab-orator today. But Houser advises that itis important to be selective about thepeople you work with, since entrepre-neurs are as “married “ to their businesspartners as they are to their spouses.Partners need to be in agreement aboutgoals, values, risk tolerance, time com-mitment, roles and responsibilities. Marc Grossman ’07, who went on

from Haverford to get an engineeringdegree at Caltech through the cooper-ative 3-2 program, initially started outalone in his venture Greenbotics (green-botics.com), working to design a proto-type robot that could clean solar panelscheaply and efficiently. But for the officiallaunch of the company in August 2011,Grossman enlisted two friends, KyleCobb, a graduate student at UCLA’sAnderson School of Management, andCedric Jeanty, a fellow Caltech graduate.

The company has also benefited fromthe help of three other graduate studentsfrom the Anderson School of Manage-ment, who have volunteered their timeto get Greenbotics off the ground by creating a business plan andreaching out to potential cus-tomers and investors.

Through their efforts, Green-botics placed second in the U.S. Department of Energy’s FirstLook West clean energy chal-lenge and won $60,000, alongwith a trip to the White House to pitchthe business. The Greenbotics team alsowon $10,000 in a “Fast Pitch” competi-tion at the California Clean InnovationConference at UCLA.

Grossman, who got the idea for

Greenbotics during a stint as an engineerwith solar thermal plant eSolar, says thecompany is currently going through afriends-and-family round of financingbefore seeking venture capital in the fall.“We’re doing great,” he says. “We’vereceived good customer support, and we’remaking our way through contract nego-tiations with our first few customers. Thehardest thing has been sustaining the nec-essary pace to get to market this summer.”

No Shortcutsltimately, there are no realshortcuts to success. “Tobe successful, you have towork harder than anyoneelse,” Gamse says. “Thepeople that I know whoare successful entrepre-neurs work all the time.”

But working hard does not simplymean putting in long hours, it meansdoing your homework and positioningyourself better than anyone else. “Alwaysbe as prepared as you can possibly be,”Gamse says. “You may not be the smartest

person in the room, but you can alwaysbe the best prepared.”

“Welcome any task that gets yourcompany off the ground, no matter howmenial,” advises Carrie Barnes, who alsocounsels patience: “Success does not happen overnight. You have to chiselaway at it.”

For PalmLing co-founder Frankeltenacity is an essential trait for the would-be entrepreneur. Frankel and his partner,Sarda, who have been laboring steadilyat building PalmLing, saw their workpay off recently. In an exciting develop-ment for the new company, PalmLingwas chosen to participate in the highly

selective startup accelerator programTechStars. Frankel and Sarda are spend-ing 13 weeks in Boulder, Col., this sum-mer in a communal workspace with 11other startups. They’ll get access to a huge roster of business mentors, and, inexchange for a six percent stake in thecompany, TechStars provides $18,000 inupfront funding and a $100,000 con-vertible note they can use to develop the business.

The summer culminates with demoday,” says Frankel, “where we presentour product and vision to an audienceof investors from around the world.”

Whatever happens, he says, theprocess will be invaluable: “We will have18-hour days of intensive engagementwith mentors who can challenge us onour assumptions and open up doors forPalmLing. We can focus on customerand product development and determinethe right strategy for our future.”

Frankel’s advice to new entrepre-neurs? Don’t give up when the going getstough. “Don’t take rejection to heart,” hesays. “If you have a vision, move aggres-sively and make it happen.”

SPRING/SUMMER 2012 43

”SUCCESS DOESN’T JUST HAPPEN

overnight,” says Carrie Barnes ’97. “You

have to chisel away at it.”

U

Jennifer Houser ’90 offers guidance toentrepreneurs with her Upstart Bootcampwebsite, courses and books.