Jun 24th, 2009
Jul 1st, 2009
Jul 8th, 2009
Jul 15th, 2009
Jul 22nd, 2009
Jul 29th, 2009
Aug 5th, 2009
Aug 12th, 2009
Aug 19th, 2009
The secrets of student entrepreneurship
By Lauren Hepler and Kate Liebers
The Friday afternoon on a holiday weekend should have meant big business for one High Street shop, yet the storefront windows were ominously dark. The alumni-operated store closed unceremoniously this month, reducing the once-upscale boutique to a few bare mannequins and some cardboard boxes.
As economic struggles continue in nearly all industries, young entrepreneurs are forced to develop their brands quickly.
A recent victim of fiscal pressures was Au Moda, a fashion boutique on South Campus Gateway. The co-owners Heather Wang and Joseph Chen - both OSU graduates - opened the store in 2007. The shop buckled under high rent and decreased summer business.
"If I had an event or something to splurge on, I went there," said sophomore Paige Keller. "I guess I could see how that could mean unsteady business for the store, though."
Apparently so.
"We didn't have enough cash flow to weather this [economic] storm ..." Chen said. "As such we lost passion."
Au Moda is not the first student-run business to close after a few years of business.
Lee Shadle opened Pesto in 2005, the year he graduated the Fisher College of Business at OSU. The bistro was marketed as an "Italian version of Chipotle," Shadle said, yet his flagship store never developed into the franchise he hoped.
From spending too much on the building and not giving enough consideration to the venue, Shadle said "we went in there setting ourselves up for failure."
Pesto lasted one month short of two years.
"I didn't have enough experience, didn't do enough homework to know what it would take to make it work," Shadle said. "I'll be the first to tell you I didn't know what I was doing."
While high rent in the face of slow business have forced shops like Au Moda and Pesto to close, others have found success by side-stepping property costs and going online.
Take, for example, Ryan Vesler, owner of Homage Clothing.
Vesler, a 2005 graduate of Ohio University with a degree in Spanish, gained recognition after securing a licensing deal with Ohio State to produce some of his vintage-inspired T-shirts with a Buckeye theme. Yet Vesler's market goes beyond Short North boutiques. According to Homage's online stock list at homageclothing.com, national retailers like Urban Outfitters sell Homage brands, as well as international vendors in Japan, Taiwan and the UK.
Vesler acknowledged many obstacles to opening his own business. He said commitment was essential to success.
"You don't get to go home every day at five o'clock," Vesler said.
Vesler added that effective branding paid off, stabilizing Homage in turbulent economic times.
"Starting a company is not without risk," Vesler said. "Our branding is strong and our message is clear. I firmly believe in the brand, and I think our customers do, too."
Vesler said his entrepreneurial nature was only natural.
"When I was in college, I had a couple of jobs in the corporate world, and I knew I couldn't work for 'the man,'" Vesler said. "I have an entrepreneurial spirit about me."
Yet, as Shadle will tell you, spirit isn't everything.
"The experience is the key to success," said Shadle. "Persistence, yes, that keeps you going. But if you don't know what you're doing, it doesn't matter how hard you work at it."
Shadle learned the hard way. The unsuccessful Pesto project resulted in a loss of about $500,000 dollars of investors', the bank's, and Shadle's own money.
Yet Shadle has recovered, and is currently assisting the development of a burger joint in the Polaris Mall food court.
Beginning entrepreneurs should seek mentorship from those already established in a similar business, Shadle advised. He suggested offering to work for free in exchange for a direct learning experience.
The university is another possible resource.
The OSU Business Builders Club is set up like a mock business, providing guidance from accomplished businesspeople and other resources to any student interested in running a business.
Also, the Center for Entrepreneurship at the Fisher College of Business also helps both undergraduate and graduate students.
"Our programs are unique in that they are completely interdisciplinary and they are offered as specializations, or minors," said Dr. Michael Camp, the Center's academic director. "This means a biology major doesn't have to change majors. Rather, they can participate in our programs regardless ... as long as they are not on probation with the university."
Others may participate in extracurricular internships, mentorships, or the accelerator program, which, according to Camp, "indentifies the best students with the best ideas and pushes them forward."
Camp stressed that the program can help no matter what a student's interest.
"Students are free to choose their major field of interest, and our entrepreneurship program will help them reach their full potential," Camp said.
"Finding something you are passionate about will make a difference in how you run a business," Chen confirmed. "If you love what you do, you'll make the best of it."
Making the best of the tough economic times himself, Chen said Au Moda will remain open where the rent is much cheaper: Online.
Originally Published: July 15, 2009
