Extreme Entrepreneur: Young businessman urges youths to take risks

2/17/05 - "Really, youth is such a powerful time to start a business," according to "extreme" entrepreneur Michael Simmons, who began his first business at age 16.

"If your first business fails, you can learn so much from it," he told a full house at Great Basic College Wednesday, ticking off the experiences to be gained, such as scholarships and networking.

"A network is extremely important," said Simmons, 23, who is trying to build his new company, "Extreme Entrepreneurship Education Corp.," after recently graduating from New York University.

Young people still have their family's support and don't have their own families to support, which makes it easier for them to become entrepreneurs, Simmons told the audience that included many high school students.

"I can only show you that door. You have to walk through it," he said after showing a clip from the move "The Matrix."

Simmons said the "world of entrepreneurship is around us everywhere," such as in the software people use or the clothing they wear. "Entrepreneurs have vision."

He also said that contrary to popular opinion, entrepreneurs who become wealthy, such Bill Gates are "normal people." And 80 percent of millionaires are entrepreneurs.

"I've seen thousands of young entrepreneurs...who take something they do for fun and turn it into something that makes them a lot of money," Simmons said.

Their ideas and philanthropy change society, he said.

Simmons said the United States is good to entrepreneurs, even creating a court system to allow those who fail, can declare bankruptcy and have their debts forgiven and start over. "In other countries, you may feel your life is over," he said.

U.S. tax laws also are "extremely generous to entrepreneurs," Simmons said, adding that the government realizes they are the backbone of the economy.

"Sixty to 80 percent of job growth comes from small companies," Simmons said.

His first venture was a company that developed Web sites, and Simmons said he wasn't too happy when the business slipped way, but he realized later how much he had learned from the experience.

"My goal is to help students pursue their vision," he said in an interview before his late-morning speech as part of the college's entrepreneurship day.

His new business includes an online support community, and speaking engagements, as well as promotion of his book, "The Student Success Manifesto." His partner is Sheena Lindahl.

Simmons also said a workbook is coming out in the next few months.

In his first venture, Simmons and his partner, Cal Newport, start a business creating Web sites, and they did this while still in high school and involved in sports.

He quipped that there were roadblocks, such as being too young to sign contracts. And they had to find someone to drive them to their first presentation to get their first job.

With the $5000 advance in their first $1,000 contract, they learned to create a Web site, Simmons said.

They also worked as a subcontractor under another business to get started, and they later connected with Web builders in India, which became their subcontractors.

Simmons said the business, called Princeton WebSolutions, ended after the partners decided to bring in a president while they went off to college, and the president decided after two months to create essentially they same business, but without them.

The Web-building business was slowing down at that time, as well, he told the audience, many of whom later attended an Entrepreneur 101 class Simmons taught.

"We maintained a lot of existing clients, but basically we went in different directions after that," Simmons said in the interview.

But they made money while in business, he said, telling the audience the company made $40,000 in the second half of their senior year.

"In the big scheme of things, that's not a lot of money, but it was good for high school students," he said.

"I learned more about myself and gained from the experience and grew as a person, and developed a brand to use in publishing," Simmons said.

Youngbiz Magazine rated the business as the No. 1 youth-run Web development company, and Simmons has received entrepreneur of the year awards from the National Foundation for Teaching Entrepreneurship, Fleet, and the National Coalition for Empowering Youth Entrepreneurship.

The college's day of focus on entrepreneurship falls in line with GBC's plans to offer certificates and an associate degree in entrepreneuship. Students can then go on to earn a bachelor of applied science degree with a management in technology emphasis.

"I think it will get the word out to the community about entrepreneurship," Small Business Development Center consultant Judy Emerson and prior to Simmons' talk.

"It's a huge focus as far as the college is concerned," she said.