ENTREPRENEURSHIP AT THE CARUTH INSTITUTE

Caruth Graduate: Anu Mahajan, Cox MBA ’05

Developing fabrication processes for high-speed photonic integrated circuits is about as hard-core high-tech as it gets. That’s what Anu Mahajan, Cox MBA ’05, was doing when he was bitten by the business bug. Taking several Caruth Institute courses during his MBA program at SMU’s Cox School of Business helped Mahajan negotiate a successful career change from electrical engineering to international management consulting.

Why did you choose the Cox School?

I hoped that earning an MBA would signal to others that I was serious about switching paths from R&D engineering to a business career. I firmly believe that in order to be the best at what you do, you need to be educated by the best. I knew that I wanted to continue working at TriQuint Semiconductor while I pursued my MBA degree. When I began looking in the Dallas-Fort Worth area at potential MBA programs, SMU Cox was at the top of the list.

What’s unique about the Caruth Institute?

Unlike the majority of other classes in MBA programs that use case studies only to supplement the textbook teachings, the Caruth courses operate in an altogether different fashion. They utilize professors who have extensive real-world experience directly related to the courses they teach. As such, the professors draw heavily upon the professional experiences they’ve amassed throughout their careers, which include various venture development activities and consulting engagements.

What was your favorite Caruth course?

Venture Capital Practicum was the course I enjoyed the most and learned the most from. Students selected for the class serve as associates for the Cox MBA Venture Fund, a real fund with almost $1 million in assets. Students in the class were paired up in teams and assigned to work with actual venture capital professionals in the DFW area. As part of the experience, we helped perform the due diligence associated with potential deals, which included:

• Performing competitive analysis,
• Analyzing market opportunities,
• Understanding the firm’s role in the value chain,
• Examining the sales distribution channels,
• Assessing the barriers to entry, and
• Evaluating the financials of the company.

Following the due diligence, we selected deals worthy of investment between $50,000 and $100,000 and presented our cases to the Cox MBA Venture Fund Investment Committee.

I found the overall Venture Capital Practicum experience to be outstanding and learned more from this class than any other in my MBA program. Students gained hands-on experience in dealing with dynamic, real-world issues that many times were difficult to analyze due to the limited information associated with start-up endeavors. I learned that you can’t always wait until you have perfect information before making a decision.

How are you applying what you learned from the Caruth Institute?

After graduating from Cox, I had two professional opportunities: one in the world of venture capital, the other with an international management consulting firm. I consulted with the VC partner I worked with in the Practicum course about which I opportunity I should pursue. He thought the international consulting experience would serve me well in future VC opportunities. So I’ve decided to accept the consulting opportunity, with a long-term eye on starting my own business.

What advice would you give to aspiring entrepreneurs?

Based on my experiences, I would say that entrepreneurs should place utmost care and importance on putting together the core team of individuals that will ultimately lead the company. In the early days of any venture, the strategic roadmap can dynamically shift from one end of the spectrum to the other, sometimes changing almost overnight. Given the chaos that will undoubtedly develop in the early phases of a start-up, the value of a coherent, experienced team with deep and relevant expertise cannot be overstated. The core team needs to be flexible as well as adaptable to any unknown situation that may arise.

Education

BS, MS, and PhD in Electrical Engineering,

University of Illinois at Urbana-Champaign (UIUC).

MBA, SMU Cox School of Business

Before Cox Foundry Engineer, TriQuint Semiconductor (TQS)

Caruth Courses

1) Managing the Entrepreneurial Business I

2) Managing the Entrepreneurial Business II

3) Venture Financing I

4) Venture Capital Practicum

Today Consultant, Mars & Co.