Sometimes, the best way to learn isn't through textbooks and tests but with hands on, real-world experience.
That is exactly the kind of learning entrepreneurship majors engage in with their capstone course, MGT 430.
In this course, students divide into groups, team up with local, start-up businesses and act as consultants to help their clients become more productive in the region's market.
The local businesses taking advantage of the students' assistance include the United Rehabilitation Services, CM Rubber, Oakwood Register, Valley Laundry and Sandwich Deli & Caf??, which is located in Kettering.
'When we first knew who our client was, we contacted her through phone calls and e-mails,' said Casey Dillon, senior entrepreneur major whose group is working with Sandwich Deli & Caf??. 'Then, we went to the deli and discussed what she felt her biggest problem in the business was and what she's struggling with most.'
Dillon said his group learned that generating sufficient cash flow is an extremely important aspect of a new business, and that increasing the cash flow of his client quickly became their number one priority.
The group has had to come up with a couple of ways to address their client's cash flow problem.
'One of the ways we've tried to help is to have her keep a better record of her bookkeeping,' Dillon said.
He added the company also wants to attract more UD students, so the group has brainstormed ways to make that happen.
'To attract UD students, we suggested offering a discount of 10 percent by using the Flyer card,' Dillon said. 'We are also trying to attract student organizations like SGA, fraternities and sororities.'
In the process of trying to meet their clients' needs, many obstacles have to be overcome. These obstacles vary from finding the time to discuss problems and progression with the client to figuring out which direction to move.
'The biggest challenge for our group has been finding relevant market information,' said Ed Zimmer, senior entrepreneur and finance major whose group is working with Valley Laundry. 'Locating market information, namely information on the laundry services industry, is not as simple as one would think. Many of the companies and local competitors in the industry are private, and thus public information is not easily available.'
Zimmer went on to say figuring out what is the most important problem to focus on and address is another challenge.
'Often there are many problems or issues small businesses face,' he said. 'The key is to only focus on solving the issue that will help the business the most.'
Previous entrepreneurship courses have helped students like Dillon and Zimmer to prepare for this capstone course.
'The entrepreneurship classes have been, overall, a more hands-on experience,' Dillon said.
Zimmer pointed specifically to his sophomore micro-business class.
'The micro-business experience, where you start a business and take a product or service from start to finish, helped us in understanding the importance of each business function,' he said. 'We quickly learned that market research and pricing strategies are equally important as maintaining accurate accounting records and inventory levels.'
The entrepreneurship capstone class, then, makes the students apply what they learned in their other courses to real, live businesses. The effect is to ready the students for their careers outside of the university.
'It is a great experience, especially for students who're interested in starting their own business one day,' Dillon said.