Name: Daniel Finnegan.
Title: Founder and president.
Company: QPC, a data analytics firm for auto insurance companies.
HQ: San Francisco.
2005 revenue: $13 million.
Number of employees: 40.
Year founded: 1985.
Source of startup capital: $150,000 federal contract with Department of Agriculture to design fraud- control systems for food stamps.
Background: Earned Ph.D. in sociology from the University of California, Berkeley. Statistician, in charge of statistical analysis for Treasury Department. He also designed IRS audits.
Age: 57.
Residence: San Francisco.
Web site: www.qualityplanning.com
Big picture
Reason for starting business: I hated Washington, D.C. I was in charge of running a fraud-control program for welfare and other programs and wanted to return here. I couldn’t find a comparable job, so I started my own company.
Most difficult part of decision: Cash flow was enormously hard. Meeting the payroll every month was tough.
Biggest plus of ownership: Doing anything I want.
Biggest drawback: The burden and responsibility. There’s just a few large contracts, so losing one or having one start and then stop makes things very difficult.
Biggest misconception: That you really are in charge. You don’t get to issue orders. You are more of a coach and you have to persuade people to do it. If they’re not on board, it won’t happen.
Biggest business strength: The people. The labor pool in San Francisco is very strong.
Biggest business weakness: Regulatory changes in the insurance industry can create unforeseen difficulties.
Biggest risk: When George Bush senior was president, he suppressed a study we had done on the nutrition of old people. We stood by the findings and that resulted in us losing most of our federal contracts. We got into insurance after that.
Biggest mistake: Most of them revolve around hirings.
Smartest move: We sold the company to ISO some years ago, but still run it independently.
Biggest worry: Personal records. We have millions of them because we analyze insurance risks. We constantly review our security because we are at risk. It’s a worry because people are out there to get you, and it’s getting more complex every day.
Top source of inspiration: I’m not an inspired human being.
Daily routine
Most challenging task: We’re trying to change the way auto insurance is done. We’re developing a rating plan with well over a thousand factors. Right now most insurers use eight factors.
Favorite task: I like math. That’s what I do.
Least favorite task: Budgets.
Biggest frustration: The sales cycle is extremely slow. It takes a year to two years to secure a client. Insurance people just are not in a hurry.
Source of support in a business crisis: Our management team.
Dreams
Key goal yet to achieve: We’re changing the mathematics of insurance. It used to be a law of averages. Now we’re building models that are exponentially bigger with equations that are hundreds of pages long with billions of data points. We’re rolling out the first set of products at the beginning of next year.
First move with capital windfall: I have all the money I need.
Five-year plan: We project 33 percent annual growth through 2010.
Inducement to sell: Money. We sold to ISO because we were relatively small and our average client was over a billion in revenue. ISO gave us visibility and stability.
First choice for new career or venture: Moving to a monastery in Thailand. It’s a different vision than the view I have from my downtown office.
Personals
Most-admired entrepreneur: Steve Jobs. He’s got vision.
Most interested in meeting: Friedrich Nietzsche. He’d be the perfect guy to get drunk with.
Stress reducers: Alcohol is good.
Favorite pastimes: Travel. I’m going to the Galapagos next month.
Favorite book: I like “Ulysses.” I’ve read that three times.
Favorite film: “Little Children.”
Favorite restaurant: 1550 Hyde. I like the ambiance and the food is extremely fresh.
Favorite destination: Bali.
Automobile: 1957 356 Porsche Speedster. I also have a ’94 Infiniti J30.
— Lizette Wilson
Nov 5 2005
San Francisco Business Times Profile
Name: Daniel Finnegan.
Title: Founder and president.
Company: QPC, a data analytics firm for auto insurance companies.
HQ: San Francisco.
2005 revenue: $13 million.
Number of employees: 40.
Year founded: 1985.
Source of startup capital: $150,000 federal contract with Department of Agriculture to design fraud- control systems for food stamps.
Background: Earned Ph.D. in sociology from the University of California, Berkeley. Statistician, in charge of statistical analysis for Treasury Department. He also designed IRS audits.
Age: 57.
Residence: San Francisco.
Web site: www.qualityplanning.com
Big picture
Reason for starting business: I hated Washington, D.C. I was in charge of running a fraud-control program for welfare and other programs and wanted to return here. I couldn’t find a comparable job, so I started my own company.
Most difficult part of decision: Cash flow was enormously hard. Meeting the payroll every month was tough.
Biggest plus of ownership: Doing anything I want.
Biggest drawback: The burden and responsibility. There’s just a few large contracts, so losing one or having one start and then stop makes things very difficult.
Biggest misconception: That you really are in charge. You don’t get to issue orders. You are more of a coach and you have to persuade people to do it. If they’re not on board, it won’t happen.
Biggest business strength: The people. The labor pool in San Francisco is very strong.
Biggest business weakness: Regulatory changes in the insurance industry can create unforeseen difficulties.
Biggest risk: When George Bush senior was president, he suppressed a study we had done on the nutrition of old people. We stood by the findings and that resulted in us losing most of our federal contracts. We got into insurance after that.
Biggest mistake: Most of them revolve around hirings.
Smartest move: We sold the company to ISO some years ago, but still run it independently.
Biggest worry: Personal records. We have millions of them because we analyze insurance risks. We constantly review our security because we are at risk. It’s a worry because people are out there to get you, and it’s getting more complex every day.
Top source of inspiration: I’m not an inspired human being.
Daily routine
Most challenging task: We’re trying to change the way auto insurance is done. We’re developing a rating plan with well over a thousand factors. Right now most insurers use eight factors.
Favorite task: I like math. That’s what I do.
Least favorite task: Budgets.
Biggest frustration: The sales cycle is extremely slow. It takes a year to two years to secure a client. Insurance people just are not in a hurry.
Source of support in a business crisis: Our management team.
Dreams
Key goal yet to achieve: We’re changing the mathematics of insurance. It used to be a law of averages. Now we’re building models that are exponentially bigger with equations that are hundreds of pages long with billions of data points. We’re rolling out the first set of products at the beginning of next year.
First move with capital windfall: I have all the money I need.
Five-year plan: We project 33 percent annual growth through 2010.
Inducement to sell: Money. We sold to ISO because we were relatively small and our average client was over a billion in revenue. ISO gave us visibility and stability.
First choice for new career or venture: Moving to a monastery in Thailand. It’s a different vision than the view I have from my downtown office.
Personals
Most-admired entrepreneur: Steve Jobs. He’s got vision.
Most interested in meeting: Friedrich Nietzsche. He’d be the perfect guy to get drunk with.
Stress reducers: Alcohol is good.
Favorite pastimes: Travel. I’m going to the Galapagos next month.
Favorite book: I like “Ulysses.” I’ve read that three times.
Favorite film: “Little Children.”
Favorite restaurant: 1550 Hyde. I like the ambiance and the food is extremely fresh.
Favorite destination: Bali.
Automobile: 1957 356 Porsche Speedster. I also have a ’94 Infiniti J30.
By Daniel • Uncategorized