Details of the Journey of Random Access
(under construction)
1985
In June of 1985, I formed Random Access with the intent of becoming a premier supplier of microcomputer products to Corporate America. This was my second microcomputer company, having previously started the Computer Center in South Bend IN after graduating from Indiana University in May of 1978. The time was ripe for a new type of computer reseller, utilizing the latest in technology and totally focused on the specific needs of the microcomputer IT departments of major corporations. I started the firm with inadequate capital and facilities in an environment that was unfavorable for microcomputer startups. A number of early entries into the microcomputer field had already run through their venture funding without producing the desired results. Despite these obstacles, I was determined to form a company model that would be successful in the evolving channel distribution of microcomputer systems to corporations. My first business plan was to concentrate on peripherals for computers which had better margins, easier to ship, and lower entry barriers. The method of marketing for mail-order companies at that time was have a toll-free number and a bank of telephone operators taking orders, generated from newspaper and magazine ads that needed to be updated constantly due to the frequent changes in pricing. My marketing approach was to utilize voicemail systems and establish a virtual catalog that could be updated daily with current pricing and schedules. I utilized a voicemail service bureau as at that time, voicemail systems were $100,000 or more. The service bureau worked well and the full system was up within a week of Random Access being formed. After several months of utilizing the voicemail system, the operator fell upon hard times and was ready to shut the service down. Seizing the opportunity, I negotiated a purchase of the service bureau and began operating the voicemail company out of my facility. The new company was called Voice Access and within 90 days of starting Random Access, I had 2 firms to manage, both in cutting edge technology. Having the new firm stretched the minimal capital I had even further, which pushed my search for capital in new directions.
1986
1986 was the continuation of the start up time period. Highlights:
 | selling of Voice Access to Daniels and Associates which freed up capital and allowed me to focus on Random Access. It also removed a key individual who was a major disruption to the growth of Random Access |
| Securing additional working capital |
|
1987
1987 was a major year of change for Random Access! Our penetration of the corporate marketplace had been so successful that our clients were clamoring for more. Up to this point, RA had focused on being the best in peripherals but had not taken the steps necessary to deliver full systems to our clients. the lack of proper capitalization was primarily the issue that was holding us back from further expansion. Credit was still tight and expensive for a small startup. I determined if we were to grow to a 100 million dollar firm, we need to carry the top brands of equipment and have the credit available to finance the sales to corporate customers. I began the search of the right supplier that could assist us in our needs, and fortunately we were able to find the proper company located right in Denver! In January 1987, I was introduced to Connecting Point of America, run by Michael Shumate and Michael Weiss. They had recently taken over the bankrupted remains of the joint venture of several cable companies
1988
1988 was a transitional year for Random Access. The stock market crash of 1987 had eroded the capital raising environment for small firms and dashed our hopes of going out for a standard IPO. Given the events, we found the opportunity to do a reserve merger with a defunct public company called Empire Video
1989
1989 was another year of great growth for Random Access! All systems were go as we were able to complete our first public offering. Our brand name was increasing daily in the marketplace and we were adding corporate accounts at an accelerating pace
1990
1990 was a huge year for Random Access! Our growth exploded and we knew we needed more financing and more office space. Instead of leasing space in multiple facilities, I wanted to build a corporate headquarters that would serve us for many years to come. I knew it would be an upward battle, but I was intent upon finding the right site and contractor to handle this important project. I found the land that was located in an adjacent parcel to our present location and due to the difficult financial situation, was able to purchase 6 acres at a bargain rate. There had been several deal that had fallen out of escrow on this parcel and the seller joked about the land being jinxed for him. He maintained it from a divorce at a much higher price and was certain his ex was putting the voodoo curse on it. He said he would probably die before he could sell this parcel and ironically, he passed away several weeks before closing. I found a contactor, Neenan and Associates out of Fort Collins CO that was focused on build-to-suit properties. They excelled in building tilt up structures that were flex space, office and warehouse.
Inc 100 listing-RA was rewarded with a #15 ranking in the May edition of Inc Magazine of the 100 fastest growing companies in America
US West Contract: After 4 years of supplying US West as a secondary vendor, we were able to successfully win the RFP against heavy regional and national competition. It was an amazing statement that Random Access was able to compete against the big boys! We unseated Businessland, the largest national reseller for corporate accounts. The February 1990 award by USW was for 50M, although the final value was close to 80M. We began the process of opening or expanding our offices in key USW cities, including Omaha, Phoenix, Albuquerque, Seattle and Minneapolis .
1991
1991 was a very busy year of change and growth. Our brand name recognition was growing quickly as were recognized in multiple magazines as a high growth firm. During the year, our stock began to take off and we planned to capitalize on it by conducting another stock offering. This was a rights offering, registering the units and warrants we had issued in the previous years offering. This offering was an exercise of 959,395 shares of common stock that were issued upon the exercise of common stock purchase warrants as well as 50,000 units that comprised of 2 shares of RNDM common and one common stock purchase warrant. Our underwriter, Cohig and Associates was an small boutique firm in Denver that syndicated the offering which raised 2M for the finance of our continued growth
1992
1992 was another awesome year for Random Access! We were able to begin preparation for another stock offering with a larger firm and of course, more money! I had set our company management goals upon being a billion dollar sales firm by 1996 and we needed the capital for acquisitions and the finance of account growth through receivables and inventory management tools. We had already pioneered the first installation of the paperless warehouse concept, using Telzon scanners for order picking.
1993
1993 was a fantastic year for Random Access! Early in the year on Feb 11th, we were awarded the Apple Educational Sales Agent Contract for a 7 seven region. This was significant as previously we had not been involved in the Apple Ed program. They relied upon a number of smaller dealers in delivering the contract. Realizing the cost of dealing with the quantity of dealers, Apple chose to realign their program to where they could develop stronger relationships with only 10 dealers across the country. Although we had a strong relationship with Apple on the corporate sales side, the education division was a separate entity with no ties to the corporate side. Knowing it would be a difficult task, I embarked on this RFP with the total goal of winning this contract to further expand RA into a market we had no share. My results paid off when were awarded the contract and Education Access was born!
RA 10 Million Offering was a huge cresendo in our progress! On August 11, 1993, we opened trading on an additional 2.5M shares of RA common stock in an offering headed by local regional firm Chatfield Dean. The process that preceded was the real story! The need for more captial started back in 1992 as we were moving into our new headquarters
1994
1994 was a stellar year for Random Access! Our growth continued and we reached 240M in sales for FY1994
1995
1995 was a huge year of transition for Random Access and myself. The industry was changing quickly and the direct sales model of Dell and Gateway was gaining momentum in Corporate America. It was apparent to me that we needed to scale our business much larger with our current model or make a dramatic change into a company deep into IT services and training. The capital to transition the business was in the 100M range and we unable to attract the proper investment banking partner to raise that level of capitalization. After looking at the potential companies that would be interested in purchasing the business, I began negotiating with a firm called Entex out of Rye Brook NY. On paper, it made great sense as they were modeled in a similar fashion and were geographically located in the East and Midwest area. We had the Western states covered so the negotation began and on May 15, 1995
1996
Founder/Chairman/CEO of Computer Center of South Bend IN
Founded in Nov 1978, when the personal computer was unknown to the general public, I formed the Computer Center of South Bend Indiana with the assistance and urging of my father. He loaned me the money and the office space to get started in the computing field. The 1st customers were hobbyists but it was clear the market was the business person who could cost justify the computer to automate tasks and keep down personnel costs. I used the Commodore line, better know for the Commodore 64 introduced in 1982, to introduce low cost microcomputer based word and database computing to the greater Michiana area