Money Matters!

It may sound ridiculous. Of course, money matters. With money, one can buy and do things, perhaps not all but certainly things that matter. While this is true in most cases, it is however, important that money is spent with accountability and care. This is especially when one has to work very, very hard to build up a business.

2. If we look at the founding of Microsoft, you will find an amazing case study of how two childhood friends can team together to create a very successful business but eventually fell out because of conflicts on who contributed more to the venture and ultimately the company’s revenues.

   Case study : The founding of Microsoft (1972–1985)

   According to Wikipedia, Paul Allen and Bill Gates sought to make a successful business utilizing their shared skills in computer programming. In 1972 they founded their first company, named Traf-O-Data, which sold a rudimentary computer to track and analyze automobile traffic data. While Gates enrolled at Harvard, Allen pursued a degree in computer science at Washington State University, though he later dropped out of school to work at Honeywell. The January 1975 issue of Popular Electronics featured Micro Instrumentation and Telemetry Systems's (MITS) Altair 8800 microcomputer inspired Allen to suggest that they could program a BASIC interpreter for the device. After a call from Gates claiming to have a working interpreter, MITS requested a demonstration. Since they did not have one, Allen worked on a simulator for the Altair while Gates developed the interpreter. Although they developed the interpreter on a simulator and not the actual device, it worked flawlessly when they (in March 1975) demonstrated the interpreter to MITS in Albuquerque, New Mexico. MITS agreed to distribute it, marketing it as Altair BASIC.

   Gates and Allen officially established Microsoft on April 4, 1975, with Gates as the CEO. The original name of "Micro-Soft" was suggested by Allen. Microsoft entered the operating system (OS) business in 1980 with its own version of Unix, called Xenix. However, it was MS-DOS that solidified the company's dominance. Microsoft eventually became the leading PC operating systems vendor. The company expanded into new markets with the release of the Microsoft Mouse in 1983, as well as with a publishing division named Microsoft Press.

   Paul Allen resigned from Microsoft in 1983 after developing Hodgkin's disease. Allen claimed that Gates wanted to dilute his share in the company when he was diagnosed with Hodgkin’s disease because he did not think he was working hard enough. After leaving Microsoft, Allen lost billions of dollars on ill-conceived or mistimed technology investments. He later invested in low-tech sectors, sports teams, and commercial real estate.

3. From the above, one can see how enchantment can turn into bitterness. God has granted man the wisdom of discernment. Using this, it is important for us to remember that while money matters, it cannot negate the importance of family, health and relationships, which contribute towards the culture within organisations. Many have written articles on this. One such person is Laurence Stybel. In his comment about Apple, he said, “At least when Steve Job was there, it was about making awesome products and if anyone was not game for it, then they should leave. It was also about changing the world. The money part was not the culture.”

4. This comment should inspire us to place importance where it should be. While money matters, there are things in life that may be worth more.