Traf-O-Data: Before "Microsoft"

“What is the first piece of software that Bill Gates and Paul Allen (the founders of Microsoft) made commercially?”… what would you say?

DOS? BASIC?

In fact… neither.

Before Microsoft was even a gleam in Bill Gates’ eye, he and Paul Allen started another computer company: Traf-O-Data.

It all started back in the early 1972 at Lakeside High School in Seattle, WA. Bill Gates was currently a Junior, and Paul Allen had graduated the year before.

To give you a visual, here are the two friends in those early days.

In 1972, those two boys (17 and 19 years old) had an idea for a business that just might make them some sweet, sweet moolah. Using computers. Which worked for them. They liked computers.

You see, the Washington State Department of Highways (which was later folded into the Department of Transportation in 1977) regularly counted the amount of traffic on key roads around the greater Seattle area — to optimize traffic flow and whatnot.

This was done by counting the number of axles that rolled across a series of pressure sensitive rubber tubes — then, every 15 minutes, that number would be punched onto a paper tape as a pattern representing a 16 bit number.

Those paper tapes would then be sent to local contractors who would read the data from the tape, write it out, and analyze the information — which would then be sent back to the Department of Highways.

By Paul Allen’s account, “The process was monotonous, inefficient, and murder on the eyes.”

Gates and Allen created software to analyze the traffic data using a computer at the University of Washington (Allen’s father was a librarian at the University, and both Gates and Allen had used the computers there — via their school computer club — in the past).

What computer did they use?

Well, there were two options available to them at that specific time, at the University of Washington. The first option was a Scientific Data Systems Sigma 5 mainframe via a connected teletype terminal..

Fun facts of the SDS Sigma 5:

• The base memory was 16K 32-Bit words (equivalent to 64K Bytes) with a maximum memory of 128K words.
• The Sigma 5 was the slowest of the Sigma series, and was one of only two models in the Sigma line that had no virtual memory.
• The base model sold for $300,000. Want an extra 16K words of memory? That’ll run you an extra $50,000.

Their ultimate goal was to produce and sell these Traf-O-Data computers to government agencies who wanted to automate their traffic data analysis.

Gates and Allen scheduled a time to demo the machine with their first potential client of the computer, King County (where Seattle is located). Unfortunately, according to Gates:

“When the guy from the County that Seattle's in came to see it, it didn't work.”

That’s right.

This was Bill Gates’ very first commercial demo… and his hardware & software didn’t work.

As Bill Gates says, success is “a lousy teacher” because it “seduces smart people into thinking they can’t lose.” “Whom the Gods wish to destroy,” wrote Cyril Connolly, “they first call promising.” The moment we think we’ve made it is the moment we stop learning and growing.

The point is, a lot of times you see someone as successful as Bill Gates and it is easy to think that he must do everything right. He never makes mistakes, does he? Wrong.

Bill Gates wasn't successful right out of the gate (no pun intended). He was a Harvard dropout and his first business, Traf-O-Data was a complete failure.

He had to learn a few lessons before becoming the billionaire he is today. Luckily, he is always willing to share his wisdom with the world.

Gates wants you?to be humble when you are successful and learn as much as you can from your failures. Just because you make a lot of money on something, doesn't mean that will happen on all your future ventures.

You still have to put in the work. You still have to be careful with your decisions. Nothing in life is guaranteed. You could easily throw all your success down the drain if you get too arrogant or overconfident in yourself.

The best way to get results is to act. The best way to learn is to fail. Success is not the end of the line, it is just one step along the never-ending journey.

Don't think for one second you have reached enlightenment in business because you had one ounce of success.

Some Ways To Avoid Overconfidence From?Success

Knowing how to handle success is just as important as knowing how to handle failure. Whether you succeed or fail, you should learn from the results.

But, to avoid letting success get to your head, here are a few strategies you can apply:

• Get truthful feedback. Surround yourself with trusted advisers that aren't afraid to be frank with you. Don't just build a team of “Yes-Men”. Have people that will tell you when you're wrong and give you honest advice.
• Always be learning. Successful people like Bill Gates all have something in common, they read daily. If you aren't constantly learning and becoming wiser, you will lose your edge and make worse decisions.
• Remove emotion from your decisions. Warren Buffett once said, “If you cannot control your emotions, you cannot control your money.” You have to learn to stay cool and collected. You will continue to see success if you make logical decisions instead of emotional ones.
• Be grateful. Sometimes you have to take a step back and just remember how far you've come. Remember what got you this far. Thank people that helped you be successful in the first place. If you do these things you will be more humble and less arrogant.
• Block out a time of thinking each day. Another thing many of the most successful people in the world do is just take time to think. Stop overloading your mind with tasks. Stop moving through the day so quickly. Stop and just think a while so you always have your head on straight.

Conclusion

You always hear people saying you must learn from your mistakes, but not very many people tell you what to do when you're successful.

Bill Gates said, “Success is a lousy teacher. It seduces smart people into thinking they can't lose.” Considering the guy who said this was the richest man in the world for many years, you might want to listen to him.