Students Learn Ins and Outs of Being the Boss

MAYHEW - - Courtney Washington found her role model in Jubilations owner Tammie Craddock.  “I learned how she started in her own kitchen and what gave her the vision to start her own bakery,” said Washington.  She was one of 40 students from three high schools who participated in the Southern Entrepreneurship Program (SEP) Second Retreat.

“In America, most jobs are created by small business,” Dr. Raj Shaunak said in his welcoming remarks.  Dr. Shaunak is Vice President for Workforce Development at East Mississippi Community College (EMCC) which hosted of the program. “In order to have a business that is successful, you’d better start a business you know something about, something you have a passion for,” he added.

Three High Schools — Bay Springs, Stringer and Columbus — were represented at the SEP Retreat, “I Am My Own Boss,” on January 22, 2009 at EMCC’s Mayhew campus.  The Southern Entrepreneurship Program is the creation of Dr. Brent Hales of the Trent Lott National Center of Excellence in Entrepreneurship and Economic Development at the University of Southern Mississippi.  The West Alabama – East Mississippi (WAEM) Regional Initiative sponsors SEP across its 37 counties. 

The participants heard from several panels — the first covered how to get funding to start a business.   Speaking on behalf of the Small Business Development Center, Sonny Fisher said eight education al institutions statewide have business development centers that assist budding entrepreneurs.

 “We see about 350 people a year in our office in Starkville,” Fisher said. “Credit is really, really important; you need to know that when you’re young.”   

Rhonda Fisher, representing the U.S. Small Business Administration, advised students to be realistic in their business plans.  

“So many people underestimate what their expenses are going to be and therefore overestimate profitability,” Fisher said.

The panel stressed the importance of a solid, well-contrived business plan.

“A business plan is your thoughts and ideas in some kind of organized mechanism someone can look at,” said David Kittrell of Bank First. “It tells who it is, what it is, where it is and how much it is.”

Banks, Kittrell continued, “are not in the business of judging character.” Their concern is a demonstrated ability and willingness to repay debt.

John Bean, owner of Harvey’s, the Grill and Peppers Deli, admitted that he did not have a business plan when he first started his business. Bean was a member of a second panel, which spoke to the students about their own experiences as entrepreneurs.

Bean said he had to sell his idea to his mom and a family friend, who were his first financers.
“If any of you want to start your own business, start saving today,” he advised. “You’ve got to have some money of your own to put in to start your business.”

To have a viable business, Bean continued, “You’ve got to fill a niche that’s not in that market. If you recognize something that fills a niche, you’ve got a real leg up and a real opportunity to be successful.”

In the way of obstacles, Jubilations owner Tammie Craddock said, “I had a lot.” When she started, she had no credit or any credit cards in her name. To finance her endeavor, “I put in every penny of our savings,” she said; which included cashing in a life insurance policy.  

Statistics show, the panelists said, that roughly 80 percent of all upstart businesses fail within the first five years. Those that do succeed don’t necessarily make money right away.

“We were profitable in our second year,” Bean said. “When you own your own business, you should learn from your mistakes very quickly.”

Students participating in the Southern Entrepreneurship Program at EMCC listen to valuable information from speakers, including Dr. Raj Shaunak (right), about becoming an entrepreneur.

The speakers also encouraged the students to surround themselves with successful, knowledgeable people and to make sure they enjoy what they do for a living.

“You’ve got to like to be out front; you’ll be the face of your business,” Bean said. “Ultimately, it all falls back on you. No one in your business who works for you is going to outwork you.”

As the retreat concluded, Tony Jeff of Mississippi Technology Alliance, explained that investors will not typically fund ideas, products, hobbies, patents, lifestyle companies and family businesses.

“Investors want to get their money in and get it out with a return,” he said. They tend to look for proprietary technology, processes or business models.

Jeff also explained the difference between debt funding, which can come from friends, family or lending institutions and requires repayment starting almost immediately, versus equity funding, in which investors get partial ownership and are generally paid back when the company is sold or publicly traded.

The students appeared to leave the daylong program with a greater understanding of what it takes to start a business. Columbus High student Terrell Jackson, 17, said he’d learned more about how loans work and the importance “of keeping your credit score balanced.”

If Jackson were to start a business, he would operate a film studio. “I want to give people different chances to read my scripts,” he said. “I plan to direct and act in these movies as well.”

Courtney Washington, 16, of Bay Springs High School said her reason for wanting to open a bakery was relatively simple.

“We really need one in Bay Springs,” she said.

Excerpts re-printed with permission from Jennifer Gentile, Daily Times Leader, West Point, MS.  www.dailytimesleader.com