How To Start A Business From Your Dorm Room
Fortunately, there are several organizations that can help you figure out where you want to go. The best first step is the Small Business Administration, a government agency that provides services to business owners.Get a Second Opinion
Many colleges and universities now offer competitions where faculty and local business owners evaluate and critique students' business plans. Ericson entered 3 Second Receipts into one such competition at Drexel and came away with $1,000 in start-up capital. Such competitions--which often require entrants to present their plan to judges and audience members--can provide a venue to fine-tune a pitch before you seek additional funding.
The prize money can be as much as a semester's tuition. UC Santa Cruz recently awarded $12,000 to a group that developed a plan for organic baby food; the University of Pennsylvania's Wharton School of Business gave $20,000 to a group of M.B.A. students who developed a way to use infrared light to assess wounds.
The University of Texas at Austin is the home of the Moot Corp. competition, which is open to M.B.A. students from around the world. Its top prize of $135,000 includes $25,00 in cash, an advertisement in a national magazine and $25,000 worth of faculty consulting services. A group from Boston University and MIT won the global competition this year for developing a way to increase the effectiveness of antibiotic drugs.
Some states offer business plan competitions as well. The Connecticut Department of Economic and Community Development awards $60,000 in grants in a competition open to all university students in the state.
Tap University Resources
Even if you don't win a business competition, you may be able to tap university resources for things like workspace, contacts with alumni mentors and seed capital. Students at Drexel's entrepreneurship program can reserve meeting space and access shared workstations. M.B.A. students at Columbia are eligible for grants from the Lang Fund, a $1 million endowment funded by an alumnus.
Many colleges also offer conferences where entrepreneurs can compare ideas. "We encourage students to talk about their idea, as long as they're not talking with someone who's going to be a clear competitor," Loschiavo says.
Social networks are a growing part of university entrepreneurship as well. Many universities provide students with lists of alumni who are willing to offer advice. Some may even be willing to offer financing or go into business with you.
Use Technology to Cut Costs
The biggest obstacle most dorm-room entrepreneurs face is funding, Loschiavo says. He suggests using the technologies to cut costs in ways that more established businesses may not have adopted.
"There are even start-up pharmaceutical companies now that never would have been start-ups 10 years ago because they can use algorithms to test compounds instead of investing in lab space," he says.
