USC Marshall School of Business

Marshall alumnus and Greif Center entrepreneur Paul Orfalea retired a decade ago as chief executive officer of Kinko’s, the multi-billion dollar copying firm he started with just $5,000. Now he fills his time with a variety of ventures including lecturing on entrepreneurship and innovation. This month, he spoke to students at USC Marshall at a co-ed Delta Sigma Pi business fraternity event.

The business visionary remains eager to hear new ideas, pushing students to focus on opportunities the same way he does.  Instead of looking to failing businesses for lessons of warning, he advised instead to find a business that is growing and run with those ideas. “Are you asking, ‘why is it working and why is it working so well?’” he asked.   

The importance of understanding and capitalizing on change was central to the conversation directed by Orfalea, who also warned against investing in businesses that may work well today but not in the future. He challenged students to follow his path and build their own businesses by observing the world around them and taking a chance on a great idea.

Orfalea built his empire from a single principle: find an unmet need and meet it. When he was a student, Orfalea observed other college students standing in long lines to make photocopies and that the copying business they patronized couldn’t handle the rising demand. Orfalea saw his opportunity and took it. He opened his first copying machine in a small storefront on the campus of the University of California at Santa Barbara, He went on to grow a great idea that was already there. “I just copied them,” he said.

Orfalea said he was always surprised that another college student didn’t come along and try to give him a run for his money.  “It’s an easy business,” he said. Now he wishes more young entrepreneurs would challenge the status quo. When considering starting a small business, instead of being intimidated by existing operations, Orfalea told students to see others’ achievements as a challenge and an invitation: “They are screaming success to you. Come and compete with me,” is what these business owners are saying.

While he dismissed “straight A types” that are constantly working toward perfect grades, Orfalea said students do need to be constantly learning in order to expand their awareness of the world around them, to keep their hand on the pulse of change.  Understanding the fundamental changes going on in the world is the key to building a business for tomorrow, he said.

While the focus was on business, Orfalea also offered up life advice, acknowledging that the two are intertwined. He told students to learn to be good conversationalists, to be interested in others and to get a good night’s sleep. But he primarily encouraged students to get going, to get inspired and to find a business they could be passionate about. To do this, they need to view everyday situations with optimism and be willing to take risks where others might not.