This semester, I'm taking a class called Entrepreneurial Journalism at NYU, taught by Adam Penenberg. We're learning a lot about entrepreneurship and doing a lot of brainstorming about new ideas. To help us with this goal of eventually starting our own new ventures, we are interviewing successful entrepreneurs to hear their stories.
I decided to interview Phil Garfinkle, a highly successful entrepreneur who, in the interest of full disclosure, is also my uncle. According to his LinkedIn page, he is a "technology visionary, ... entrepreneur, inventor, CEO, and investor, with a focus on emerging technologies. He is a four-time successful entrepreneur, held a number of senior management and engineering positions, is an active angel investor, and holds many patents." Needless to say, he knows his stuff and had a knack for creativity and innovation.
Here is the Q&A exchange between me and Phil Garfinkle.
Rachel Wise: Why specifically do you think you are considered an entrepreneur?
Here is the Q&A exchange between me and Phil Garfinkle.
Rachel Wise: Why specifically do you think you are considered an entrepreneur?
Phil Garfinkle: Different people are considered entrepreneurs for different reasons. Some because they enjoy taking chances in order to find success. My focus is more about taking ideas and dreams and executing in a very pragmatic approach. If something works, I keep doing it. If something does not work I am quick to stop it.
RW: What was your very first start-up/entrepreneurial venture?
PG: My first “start-up / entrepreneurial venture was starting a sand and plant terrarium business when I was 12. I would design and build custom design terrariums and sell them on contract or I would sell them on a street side stand. I personally invested in all the materials and then entered into an arrangement with a popular gas station near a lot of business buildings. But…. Based on the questions below, I will “discuss” my first venture backed start up, PictureVision.
RW: How did you come up with the idea for it?
PG: As Chief Technology Officer of a public company, I was very focused on building new technology for Document Imaging or to address the goal of the “paperless office.” I was mostly focused large-scale system design to deal with large paper flow applications. I saw the likelihood that it made eventual sense for digital cameras to replace film based cameras for consumer photography. I also saw the opportunity for networks to eventually come into people’s homes instead of just military and business applications. I wanted to lead the development and execution of this transformation. It started with the concept of kiosks because I did not think PC’s and networks would make it to the home quick enough for business success. We ultimately did both home and kiosk solution.
RW: How did you turn your idea into a business plan? How long did it take?
PG: The Company I was with was not interested in “consumer” imaging applications. Their focus was completely on business-to-business applications. So, I moved forward and built my business plan on my own time. I decided to go off to determine market interest in my idea. The business plan and concept developed over a 9-month period. As I did more research, we become more clear that the home consumer market could be successful and most effort went to pursue that path.
RW: How long did it take to become profitable after officially launching your venture?
PG: Like most start up companies, execution provided education. I learned quickly that we needed to build various technology pieces so that the company could be successful. This required substantial capital to drive monster success. In addition, we were pursuing mass consumer markets so reinvestment was key to success. PictureVision was extremely successful in gaining market share and putting the investments in place to form the various online photography markets. After a little over 3 years we merged with Kodak. Prior to sale, we were never profitable, nor did we plan to be at that stage of the company’s development.
RW: How did you initially fund your idea? What eventually became your revenue model?
PG: We were initially funded out of our own pockets. Shortly there after, we raised “Angel” financing. Our revenue model started with the goal of transactions but quickly evolved in to both transactions and “digital processing systems” for the photography business.
RW: How did you get the word out/publicize it?
PG: Even at an early stage we used a Public Relations company to help us get the word out. We participated in industry trade shows and I did a lot of interviews with magazines, newspapers, and TV. We did very limited advertising. We aligned with very large partners that did a lot of the advertising for us. Sony, AOL, Microsoft, Canon, Adobe, and others embedded our product with theirs. This was my key strategy to launching and sustaining a revenue stream with the least amount of expended capital.
RW: What was one of the biggest challenges you faced in launching your idea? In keeping it alive?
PG: There were many challenges to deal with in our environment. We were building new technology to make sure our pictures were as good as traditional film pictures. Digital printers were not really good enough at the time, so we had to work with these technology challenges. As we found success many attempts from copycat companies would threaten our market position. We had to constantly balance what we spent with what we could achieve. All in all the biggest challenge was the consumer shift from traditional snapshots to digital photography. Getting consumers to boot up their photo album was a pretty big shift from opening up a scrap books of photos.
RW: What was your very first start-up/entrepreneurial venture?
PG: My first “start-up / entrepreneurial venture was starting a sand and plant terrarium business when I was 12. I would design and build custom design terrariums and sell them on contract or I would sell them on a street side stand. I personally invested in all the materials and then entered into an arrangement with a popular gas station near a lot of business buildings. But…. Based on the questions below, I will “discuss” my first venture backed start up, PictureVision.
RW: How did you come up with the idea for it?
PG: As Chief Technology Officer of a public company, I was very focused on building new technology for Document Imaging or to address the goal of the “paperless office.” I was mostly focused large-scale system design to deal with large paper flow applications. I saw the likelihood that it made eventual sense for digital cameras to replace film based cameras for consumer photography. I also saw the opportunity for networks to eventually come into people’s homes instead of just military and business applications. I wanted to lead the development and execution of this transformation. It started with the concept of kiosks because I did not think PC’s and networks would make it to the home quick enough for business success. We ultimately did both home and kiosk solution.
RW: How did you turn your idea into a business plan? How long did it take?
PG: The Company I was with was not interested in “consumer” imaging applications. Their focus was completely on business-to-business applications. So, I moved forward and built my business plan on my own time. I decided to go off to determine market interest in my idea. The business plan and concept developed over a 9-month period. As I did more research, we become more clear that the home consumer market could be successful and most effort went to pursue that path.
RW: How long did it take to become profitable after officially launching your venture?
PG: Like most start up companies, execution provided education. I learned quickly that we needed to build various technology pieces so that the company could be successful. This required substantial capital to drive monster success. In addition, we were pursuing mass consumer markets so reinvestment was key to success. PictureVision was extremely successful in gaining market share and putting the investments in place to form the various online photography markets. After a little over 3 years we merged with Kodak. Prior to sale, we were never profitable, nor did we plan to be at that stage of the company’s development.
RW: How did you initially fund your idea? What eventually became your revenue model?
PG: We were initially funded out of our own pockets. Shortly there after, we raised “Angel” financing. Our revenue model started with the goal of transactions but quickly evolved in to both transactions and “digital processing systems” for the photography business.
RW: How did you get the word out/publicize it?
PG: Even at an early stage we used a Public Relations company to help us get the word out. We participated in industry trade shows and I did a lot of interviews with magazines, newspapers, and TV. We did very limited advertising. We aligned with very large partners that did a lot of the advertising for us. Sony, AOL, Microsoft, Canon, Adobe, and others embedded our product with theirs. This was my key strategy to launching and sustaining a revenue stream with the least amount of expended capital.
RW: What was one of the biggest challenges you faced in launching your idea? In keeping it alive?
PG: There were many challenges to deal with in our environment. We were building new technology to make sure our pictures were as good as traditional film pictures. Digital printers were not really good enough at the time, so we had to work with these technology challenges. As we found success many attempts from copycat companies would threaten our market position. We had to constantly balance what we spent with what we could achieve. All in all the biggest challenge was the consumer shift from traditional snapshots to digital photography. Getting consumers to boot up their photo album was a pretty big shift from opening up a scrap books of photos.
RW: How many people went into creating and maintaining your venture/business?
PG: We started with 3 people. After 4 years we were in the hundreds. We had operations in Israel, Germany, and Japan, with affiliates all over the world.
RW: Who was your competition, and how did you manage to stay ahead?
PG: Everyone. We were disrupting the entire eco-system of the photography market. Once we achieved traction, everyone wanted to compete. Our biggest competitor eventually merged with us…. Kodak
RW: Where is your idea/business today? Do you still maintain it?
PG: My idea and business represents a large portion of Kodak and its operations today. It has been re-branded to fit into the Kodak infrastructure. I have not been involved since 2001.
RW: What are you most proud of?
PG: Our approach and idea is ubiquitous in the market. It is the market and the way everyone shares digital photos. The patents that I created are the standard in how people share digital photography. It is great to see people share their photos on their cell phones and be able to put their photos on other products from coffee mugs to calendars so conveniently.
RW: How much of your success would you attribute to your college education, and how much would you attribute to trial and error and hands-on experience?
PG: College taught me how to deal with juggling a lot of issues and how to think independently. There may not be any direct correlation but taking a start up from inception to exit is about juggling many balls. It is about making tough decisions and adjusting those decisions based on their impact and reality in practice. Everything is “trial and adjustment.” I think passion and “desire to win” trumps “hands-on experience.”
RW: How did your idea change the industry?
PG: Most of professional and consumer photography leverages our original concepts today and the foreseeable future.
RW: What advice would you give to emerging entrepreneurs?
PG: You really have to believe and have passion in your product. Make decisions and be willing to adjust quickly. Surround yourself with people that you can trust and share your passion.
RW: Is there anything else you think would be helpful to know?
PG: Family is very important to drive success. Entrepreneurs need a strong support system to do the crazy things we do.
Think out of the box. The way things work today does not dictate the ways things work in the future.
Entrepreneurialism is not about taking risks. It is about taking your ideas and making them reality.
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