On October 13, 2021, students gathered at the Skandalaris Center to learn more about the Student Entrepreneurial Program, also known as StEP. This 22 year old program was designed to provide students an outlet to create and own businesses on campus that serve the Washington University community. Student owners can supplement the valuable business and entrepreneurial skills they learn in the classroom while gaining real-world experience as they manage and lead their own businesses. Students can buy into an existing business or start a new one.
According to Skandalaris’ Assistant Director of Programs, Jessica Weldon, “This program is unique from other universities because WashU does not own any stake in the businesses. Students own shares in the business and have complete control in managing their daily operations. The Skandalaris Center and the StEP Advisory Board offers a lot of support and guidance, but the student-owners are in charge.”
The process for starting a new StEP business starts with students coming to the Skandalaris Center with ideas. Jessica Weldon and StEP Advisory Board Member, Jeff Cooper (Director of Auxiliary Services at WashU) advise potential new owners on how to navigate the system and things to consider like food safety needs, equipment needs, etc. There may be challenges to overcome, and those who are serious about their idea put together a business plan designed to sell WashU on why the business benefits our community. According to Jeff Cooper, “Currently we are in a position to say yes, I am looking for ways to say yes.”
Jeff Cooper also talked about how this is a good time for innovation and possible new partnerships because the situation on campus has changed during Covid. “In the past, food ideas were not an option. But with new student-focused leadership within dining services, there is an emphasis on seeing new ideas succeed. Dining services is facing challenges this year, and we want to support them, so there is room for new ideas where all parties could be successful.”
Drake Shafer (BU ’23), one of the student owners of StEP business Gallery 314, told the origin story of his business. In his freshman year, he attended this same workshop to find out about starting a business. He and his co-founder, Justin Reiling (BU ’23), went through a lot of ideas before landing on Gallery 314. According to Drake, “Jeff and Jessica helped us formulate a plan that would be accepted on campus and had potential. We’ve been open since Sept. 2020 – almost a year and a half. Opening during Covid was very interesting, but we kept pushing through it and made our business pitch and presentation. Now have 25-30 consigners on campus who sell their products through our store, plus other consigners from off-campus. We sent out an initial interest survey six months before opening, which helped create our initial set of inventory. We still use social media to continue getting feedback from students. We will soon be introducing plants and succulents due to student requests and feedback.”
Jeff Cooper gave more advice on getting started. “Do customer discovery – talk to peers, do surveys, and share your idea to see if it has potential. This is a key to success as a new business. Write up business plan, get feedback, revise, and get in a good place. Think about startup costs and financial assistance you might need. Then pitch to the advisory board – the board will deliberate, and might ask for more info. At that point you will find out if you’ve been granted approval as a StEP business.”
The workshop addressed important issues like startup costs. The Skandalaris Center has loan funds available for those who demonstrate financial need. And what happens when a StEP owner graduates? Most students sell their shares when they graduate or leave campus, but some chose to close the business or take it with them. The students own the LLC, so they can opt to move it off campus.
Much of the advice for choosing a team to lead a startup could apply to any new venture. Considerations should be made for picking work partners you get along with, focusing on their strong suits, and being willing to learn from each other. Skandalaris advises having a team with a variety of backgrounds and skill sets. It’s hard to do this on your own; building a good team is the best plan for support. Like choosing a romantic partner, communication is key. They stressed the importance of having an operating agreement and knowing what is in it.
Between the Skandalaris Center and the Advisory Board, StEP businesses participate in regular check-ins and can ask for help to brainstorm ideas. “The StEP program is very supportive and we want to see students succeed. You have a team of 9-10 people trying to help your business. We want students to get the educational experience as well. This is a great resume builder. Within StEP we also do social and educational events, like a StEP owners’ dinner, to meet peers and network with each other.” said Jessica Weldon.
Skandalaris’ Assistant Director of Venture Development, Cyril Loum, attended the workshop and addressed any new business ideas that might not be a good fit for StEP. “If you have an idea that doesn’t fit into StEP, meet with me and we can connect you with lots of resources, including competitions, mentors, educational info…we will help you with whatever you need. We want you to have a solid foundation free of charge to help you kick off your ideas” he said.
Anyone interested in starting a new StEP business should contact Jessica Weldon at the Skandalaris Center for helpful advice and guidance. There’s also a lot of information on the Skandalaris Center’s website for students considering starting or buying into a StEP business.