Success Story
WIOTEL, Inc.

 


Sameh Michaiel, founder and CEO of WIOTEL Inc., believes that the guidance he has received from SCORE counselors and his SCORE mentor, Charlie Askanas, has been crucial to his company’s success. WIOTEL provides hotel software applications that enhance hotel guest services and increase revenue for the hotelier, “I think my story is typical of many first-time high tech entrepreneurs,” says Sameh. “I really need someone with whom I can consult about business issues; someone who has successfully started a business and can provide me with unbiased, constructive advice.” He continues, “Charlie and SCORE fill that role for me.”

Trained as an electrical engineer in Egypt, Sameh emigrated to the U.S. in 1982. He spent the early years of his career as a telecommunications engineer for Ericsson and AT&T Labs and rapidly rose to management positions in the development of network systems destined for major telecom carrier companies.

In 2000 Sameh joined Intel Corp when Intel was just embarking on a strategic push to add wireless networking capabilities for the average PC user. Based on his experience at Intel, Sameh became fascinated with WiFi technology because of its capabilities, ease of use and low cost of deployment. “I believed right away that WiFi was going to be a big success and that a huge market would open,” he says. Sameh concluded that the real opportunity in WiFi was not at the individual consumer level, nor for typical small and medium sized businesses. Instead, he saw a fertile area for the new WiFi technology in the hotel and conference center market.

In 2002 Sameh decided to follow up on this belief. He left Intel and founded WIOTEL, Inc as a sole proprietorship. At first WIOTEL assembled WiFi networks for hotels using commercially available gear from large enterprise manufacturers. “It didn’t take me long to realize that there was nothing unique in this approach,” says Sameh. “I really needed to differentiate my company in order to be successful. Then it hit me. The real opportunity wasn’t in selling hardware systems but rather in selling applications systems,” he says.

As a frequent business traveler over the years Sameh had experienced many of the frustrations associated with hotel service that most business travelers face. “I thought to myself wouldn’t it be great for a traveler to be able to do everything from ordering room service to getting an extra blanket to making reservations at a restaurant all from his or her laptop or PDA,” he says. Sameh realized that a traveler’s device, whether wireless or otherwise, could be linked to a hotel’s guest services system to provide a convenient means of communication between the traveler and the hotel or any affiliated service provider. “The hotel could document all this information in a database to ensure accuracy and timeliness, and the next time that the traveler came to the hotel, the hotel would know the traveler’s preferences and would be able to personalize its service for him or her,” says Sameh.

In 2003, Sameh was feeling the loneliness and insecurity of most first-time entrepreneurs when a friend recommended that he seek help from SCORE. After attending the Silicon Valley SCORE seminar, “Running and Troubleshooting a Small Business” given by SCORE counselor, Charlie Askanas, Sameh met with Charlie and they agreed that Charlie would act as ongoing mentor for Sameh and WIOTEL.

Since late 2003 Sameh has taken other SCORE courses including “How to Write a Business Plan” and “Internet Marketing”. He consulted with an attorney on the advice of SCORE counselors and reorganized his company from a sole proprietorship into an S corporation. He has used the library at the SCORE offices in downtown San Jose to get a wide range of information on topics as diverse as how to obtain permits and how to determine the financial value of his company. Charlie and other SCORE counselors that he has brought in have advised Sameh on broad issues such as business and marketing strategy as well as more narrowly focused issues such as budgets, forecasts and how to prepare for meetings with customers. “Charlie and other SCORE counselors have encouraged and prodded me to stay focused, to narrow my choices and strategies,” comments Sameh. “Charlie always objectively and constructively critiques my plans, giving me sound advice and direction when I really need it,’ he continues.

In 2004 WIOTEL sold its first “Myotel™” suite of applications to enhance guest services to the Marriott Hotel in downtown San Jose. Working with the Marriott and four other hotels that also were early adopters of the system, WIOTEL has added key features that increase guest satisfaction and improve hotel operations and revenue. These initial customers have been so happy with the system that one major hotelier is considering adopting it as its standard guest services system for all its affiliated hotels around the world.

Until recently Sameh has bootstrapped financing of WIOTEL from his own resources and those of his employees who are minority participants. But, he recognized that the company needed significant additional funding for market development, product expansion and extension of patent coverage in order to grow. So, Sameh initiated efforts to raise funds from venture capitalists in late 2006. With the help of Charlie Askanas, he prepared a business plan and a well prepared “pitch” that could be presented to VC’s. The happy result is that in May, 2007, WIOTEL received a commitment from a venture capital firm to provide the funding it needs, an amount well in excess of two million dollars. “With these new funds, WIOTEL will be able to roll out its product to the broad hotel market and continue to enhance the product’s capabilities,” says Sameh. He concludes, “Until now we’ve been working hard planning and rehearsing. Now the real show starts. I’m counting on continuing support and advice from SCORE to help us realize our dreams.”



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