Many college students dream of one day starting a business such as opening a thriving restaurant or a hightech start-up, or even selling the best chocolate chip cookie ever. However, two students, Brendan Rice and Russell Suskind, decided they wanted to start a mattress company. Rice, who graduated from the University of Wisconsin and loves extreme sports, and Suskind, a graduate of Syracuse University who enjoys hockey, started Doze Beds with just $10,000. And their company is changing the way consumers purchase mattresses. Rice and Suskind teamed up when they were introduced at Venture for America: a two-year fellowship where recent college grads hone their entrepreneurial skills in cities where jobs desperately need to be created. As students, both men discovered how difficult and confusing mattress buying could be with so many options, styles, and prices.They wanted something simpler and Doze Beds was born. The company operates on the principle that if a firm offers a basic product at a reasonable price, makes delivery a cinch, and has a transparent return policy, it will be successful. Doze sells a 10-inch memory gel foam mattress that is ordered online, packed in a small FedEx box, and sent right to the customer’s door. Without a brick-and-mortar retail store, Doze Beds avoids substantial overhead costs and the consumer enjoys buying direct from the manufacturer without heavy markups. Doze Beds has a very liberal return policy for those who decide they don’t like the bed that they have purchased: They receive a full refund, and the company helps the customer find a needy venue to donate the bed. The founders of the company as well as other employees visit college campuses and music festivals all over the country to show off their product. “We find that when people are able to feel the product and interact with the brand, they are much more likely to purchase,” Suskind said.46 Like the founders of any start-up, Rice and Suskind have had to handle the difficult challenge of taking a business from a vague concept to a tangible, smooth-running enterprise. Rice got his start at helping other young entrepreneurs while he was at the University of Wisconsin working in a business incubator. He spent most of his time on “trying to support students that had business ideas and wanted to launch their own company.”47 He found it energizing that other students were pursuing their dreams and bringing their business ideas to fruition. His affiliation with these budding entrepreneurs drove home the realization that he could start a business, too. When Rice met Suskind at the Venture for America fellowship, the mattress business was at the forefront of their thoughts. Both had dealt with the exhausting endeavor of visiting mattress stores, being confused by the hundreds of choices, and finally having to figure out how to strap the mattress to the top of their car! They knew there had to be a better way, and that’s when they developed their idea to build an online business that would involve a simple, fairly priced mattress. Because it does not have springs or any other rigid structure, it can be folded into a tight package and mailed directly to the consumer in a small box. The reviews from customers have been outstanding, and many echo Rice’s sentiments when he says, “I can’t wait to jump into my bed at the end of every day.

1. In starting their business, how have Rice and Suskind used the four functions of management?
2. Discuss the use of organizational resources (human, monetary, raw materials, and capital) in a start-up like Doze Beds. What challenges would an entrepreneur face with each one?
3. Which of Katz’s managerial skills (technical, human, and conceptual) do Rice and Suskind use most often? Why?