From Dropout to Billionaire: The Life of Michael Dell

The Life Story of Michael Saul Dell

Dell Inc. is a household name in the personal computer industry. It is one of the eight most recognized computer companies in the world.

What you may know about this company is it bears the name of its founder, Michael Saul Dell.

Michael Dell is an American entrepreneur and businessman best known as the founder, chairman, and CEO of Dell Technologies (parent company of Dell Inc.), one of the world’s largest computer and technology companies.

Dell founded PC’s Limited (thereafter named Dell Computer Corporation and finally, Dell Inc.) at 19 years while still a freshman on campus. He built computers and sold them directly from his dorm room.

In 1992, he became the youngest CEO and founder of a company featured on the Fortune 500 list.

Dell is one of the entrepreneurs behind the PC revolution in the 1970s and 1980s. Let’s discover how he went into the PC industry and started one of the best PC manufacturers in the world.

“Buying a company that is number one in its business is hard to do. When something is for sale, it’s often not a leader.” – Michael Dell

Birth and Childhood

Michael Saul Dell was born in Houston, Texas, on February 23, 1965. He grew up in a well-off Jewish family, with his mother (Lorraine Charlotte) working as a stockbroker and his father (Alexander Dell) as an orthodontist.

Dell’s parents wanted him to pursue medicine. However, he exhibited enthusiasm for business and electronics.

Education

Dell studied at Herod Elementary School in Houston, Texas, and then went to Memorial High School.

Ever the go-getter, he applied for the high school equivalency exam at eight, hoping to complete school quicker to join the business world.

Outside school, Dell worked part-time roles. He used his earnings to invest in stocks and precious metals.

Dell once worked as a dishwasher in a Chinese restaurant. He also sold newspaper subscriptions for the Houston Post. On one occasion, he made $18,000 in one year.

“I always knew I wanted to run a business someday.” – Michael Dell

Dell’s interest in technology and business didn’t diminish as he grew older.

At age 15, he purchased an Apple II PC with the sole intention of dismantling it to learn more about computers.

His parents still wanted him to become a doctor, so he enrolled in a pre-med course at the University of Texas.

Founding Dell Inc.

Dell had no sooner settled in to study medicine at the University of Texas than a new business idea popped into his mind.

He established a small business selling PC disk drives on campus, allowing computer owners to customize their memory disks.

Using $1,000 in personal startup funding, he registered his venture with the state of Texas and named it PC’s Limited. This startup became the foundation for Dell Inc.

Through word of mouth and low-budget advertising techniques, Dell made approximately $80,000 in his freshman year, his first year in business.

He dropped out of college, against his parent’s wishes, to focus on running his business.

“A company is only as good as the people it keeps.”- Michael Dell

In 1986, Dell’s company became the first to offer toll-free technical customer support, now offered by every PC maker.

Under Dell’s leadership and innovation, the company grew and became a dominating player in the computer industry.

Dell took PC’s Limited public in 1988 and changed its name to Dell Computer Corporation. He managed to raise $30 million from the IPO.

In 1992, Dell became the youngest CEO to lead a Fortune 500 company worth more than $600 million in market value.

By the end of the 20th century, he was a billionaire, and Dell Computer Corporation had over 35,000 employees and offices in 35 countries.

Dell stepped down as CEO of Dell in 2004, leaving the reins to Kevin B. Rollins, the then president and COO. He, however, remained chairman of the board. Dell returned to become CEO in 2007 after the resignation of Kevin Rollins.

Business Philosophy

Dell learned about business from his early entrepreneurial ventures as a kid and teenager. He emphasized affordable, high-quality machines and excellent customer service.

Dell published his autobiography, Direct from Dell: Strategies That Revolutionized an Industry, in 1999.

“I do think a founder has special permission to make sweeping changes across an organization.” – Michael Dell

This book recounts how he built a $100 billion business using only $1,000. Dell is today one of the wealthiest men in America, with $52 billion as of 2023.

His company, now called Dell Technologies, is a multi-billion dollar company and one of the largest technology firms in the world.

Personal Life

Outside of his work at Dell Technologies, Michael Dell married Susan Lieberman, with whom he has four children.

Michael and Susan Dell are known for their philanthropy and have donated millions of dollars to various causes, including education and healthcare initiatives.

The couple engages in philanthropic work through their foundation Michael and Susan Dell Foundation.

Closing Remarks: Be Ambitious Like Michael Dell

Michael Dell’s life and business career are a testament to the power of ambition and tenacity.

He is an inspiration to all who seek to have the world at their feet in the business arena.

Dell started as a computer enthusiast who later established a computer company that would become a luminary in its industry.

“It’s through curiosity and looking at opportunities in new ways that we’ve always mapped our path at Dell. There’s always an opportunity to make a difference.” – Michael Dell

Michael Dell Timeline

1965:

Michael Saul Dell is born in Houston, Texas.

1980:

Dell gets his first Apple II computer, disassembles it, and learns how it works.

1983:

Dell joins a pre-med program at the University of Texas and informally sells computer upgrades and kits that he assembles within his residential building.

1984:

Dell makes $80,000 in sales and officially registers his company as PC’s Limited. He drops out of college to run his company full-time.

1988:

PC’s Limited gets renamed to Dell Computer Corporation. Dell takes it public with an IPO that raises $30 million.

1989:

Michael S. Dell marries Susan Lieberman in Austin, Texas.

1992:

Michael Dell becomes the youngest CEO of a Fortune 500 company.

1996:

Dell starts selling computers online, becoming one of the first companies to do so. The company gets renamed Dell Inc., and its product line expands to computer products other than PCs.

1998:

Michael Dell founds MSD Capital LP to manage his private investments.

1999:

Michael and Susan Dell establish The Michael and Susan Dell Foundation to champion children’s health, education, and other philanthropic causes.

Dell publishes his autobiography Direct from Dell: Strategies That Revolutionized an Industry.

2004:

Dell steps down as CEO of Dell but remains chairman of the board.

2007:

Dell returns as CEO of Dell as it faces declining profits and market share.

2013:

Dell takes the company private in a $24.4 billion leveraged buyout, with the help of Silver Lake Partners, Microsoft, and other partners.

2016:

Dell Inc. and Silver Lake acquire computer data storage provider EMC for approximately $67 billion and rename the combined private company Dell Technologies.

2018:

Dell Technologies goes public with Michael Dell as CEO.

Lessons From the Life of Michael Dell

Michael Dell is a highly successful businessman. Next are three lessons from him we can look at.

Lesson One, Find a Target Market and Don’t Try To Please Everyone.

Marketing begins with identifying your target market. Advertising to everyone results in a weak message because you’re trying to please everyone instead of a specific group.

You’ll have a much better conversion rate when you target specific people because you can address their needs as opposed to trying to address the needs of everyone.

It’s important to understand that you can have more than one target market. For example, with Dell computers, one target market may be students.

Another might be gamers, and a third might be business people. Each of these markets has specific needs, and when you address each, you have a better chance to provide the products and services that each target market wants.

Lesson Two, You Can Learn As You Go.

For example, if you’re starting a business, you don’t have to know everything about it before you get started. Instead, you can learn as you go. There are two approaches that I like to use.

Learn more about your industry every day, week, or month, make it a habit, and never stop learning and reviewing information relevant to your company.

Second, you can learn as you need information. This approach can be very effective when you need information and can make immediate use of it.

Lesson Three, Dell Guides People and Inspires Them To Follow His Goals.

This approach is much more powerful than forcing people to follow your goals.

Using inspiration invokes emotions which will result in a better outcome. Therefore, people will want to be a part of and put effort into reaching the goal.

The key is inspiring people.

One key factor is presenting your goal so people will fully understand it. People will not engage without a clear understanding.

Next, you can explain why you are doing it. When people fully understand the reason for your goal, they may get on board and even offer feedback and ideas.

Finally, you can explain the benefit to them if the goal is reached.

Instead of simply presenting a goal and telling people to achieve it, people are more likely to support your goal if they understand why you’re pursuing it.

5 Facts Related to Dell

1. The biggest management buyout since the Great Recession occurred on January 5, 2013, when Michael Dell took Dell Inc private for $24.4 billion.

2. Dell began as PCs Unlimited in 1984, out of Michael Dell’s dorm room at the University of Texas.

3. With only $1000 in seed money, Dell grew so rapidly that its 1988 IPO raised $30 million.

4. Michael was the youngest CEO ever to head a Fortune 500 company when the company made the list for the first time in 1992.

5. Wind power and gas converted from landfill emissions completely power Dell’s 2.1 million square foot campus.

Frequently Asked Questions

The information in this post answers many of the questions about Michael Dell. This section provides a summary and any additional information.

1. How did Michael Dell make his money?

Michael Dell made his money by founding and leading a computer technology company called Dell Technologies.

2. How old was Michael Dell when he founded Dell?

Michael Dell founded Dell (originally PC’s Limited) when he was 19.

3. How much is Dell worth today?

According to Forbes’ real-time billionaire tracker, Michael Dell has a net worth of $52 billion.

Dell Technologies has a market capitalization valued at approximately $30 billion. It is the 587th most valuable company, according to market cap value.

4. Was Michael Dell a dropout?

Yes, Michael Dell is a college dropout.

He dropped out of the University of Texas in his freshman year to focus on his business, originally called PC’s Limited (later renamed Dell Computer Corporation).

5. What percentage of Dell does Michael Dell own?

Michael Dell owns almost half (approximately 48%) of Dell Technologies. However, since it is a publicly traded corporation, Michael Dell’s ownership stake fluctuates over time based on stock market conditions.

6. What traits make Michael Dell successful?

Michael Dell’s success can be attributed to hard work, curiosity, resilience, an innovative and entrepreneurial spirit, and excellent leadership quality.

Most importantly, Dell is and has always been a visionary.