Taking book smarts to the bank

Some people wait years, even decades, before they bolt the corporate cubicle to start their own companies.

Then there's Kevin Carlow.

The 22-year-old graduated in May from the University of Minnesota with degrees in marketing and entrepreneurial management. But by the end of June, he had left the security of a full-time job to put his newly acquired entrepreneurial credentials to the test.

That meant joining former classmate Nick Beste in running the Alumni Advisor, an annual magazine aimed at new college graduates.

Last spring, the publication, distributed to 8,000 U of M seniors at a graduation event, generated more than $34,000 in revenue.

Next spring, the Advisor will reach nine campuses across the country, going to more than 50,000 students from Florida State University to the University of Arizona, as well as to the U. Revenue could hit as much as $600,000.

At first, Carlow tried balancing his magazine duties and his job in sales and marketing at Coherent Solutions, an information technology consulting and outsourcing company in Minneapolis. Then, exhausted, he sought advice from friends and former teachers before casting his lot with the Advisor.

"I feel more fulfilled now," said Carlow, who was born in Canada but grew up in Wisconsin. "I had the degree, I'm young and hungry, and our business didn't need a whole lot of start-up capital.... I like things that are a little more fast-paced and risky."

The Alumni Advisor was the brainchild of Carlow, Beste and other students who signed up for a course at the U called Entrepreneurship in Action. The yearlong class is taught through the Carlson School of Management's Gary S. Holmes Center for Entrepreneurship.

Students spend the first semester coming up with ideas for companies, building business plans and choosing companies they will launch and operate in the second semester, said John Stavig, the center's director.

They consult with faculty members, local entrepreneurs and alumni to evaluate plans and work out other details, Stavig said.

"The role of our entrepreneurship center and our program here is about inspiring the next generation of entrepreneurs," Stavig said. "This class helps give them actual experience in some of the basics of starting up a business -- developing and launching the initial products, working with customers and vendors in the real world."

The U class is modeled after a similar offering at Babson College in Wellesley, Mass., Stavig said.

The two courses are the only ones in the country that Stavig said he is aware of that enable students to start and run a business external from the university.

"We're encouraging the students this year to think bigger and more broadly; to pursue opportunities that will have the potential to develop sustainable businesses," Stavig said.

Two years ago, the first Entrepreneurship in Action class started two companies, one that produced uSuits -- collegiate-branded iPod covers -- the other made U-Guide, a publication for freshmen and returning students. Three students who founded the U-Guide purchased that business and continue to run it.

Besides the Advisor, last year's class also launched a company that made and sold Gopheropoly, a U-themed take on the classic board game. That company, though, did not go forward after the class ended.

So far, the four student companies have generated more than $150,000 in revenue and have donated more than $40,000 to the university, Stavig said.

Carlow and Beste have not limited their entrepreneurial efforts to the classroom.

Beste, 20, who is a junior majoring in finance, may be familiar to readers from a column in November concerning the company that he set up to distribute Village Hot Sauce, a brand of fresh salsa made in his native Grand Forks, N.D.

That endeavor continues, with growing sales and distribution to more than 150 stores in Minnesota and North Dakota, Beste said.

In the meantime, Beste met Carlow in last year's Entrepreneurship in Action class. Students used upfront ad sales to finance production of the 138-page magazine, spending only about $200 out of pocket to get it going, Beste said.

Anticipating they might pursue the Advisor as a continuing business, Carlow and Beste in March started another company outside of class to see how they worked together.

That company, uShirtz, does custom printing of apparel and promotional items for fraternities, sororities and student clubs through an online catalog at www.ushirtz.com. They expect revenue to top $100,000 this year.

"The idea came about from playing club volleyball at the U," Carlow said.

"Every single year we would buy our stuff from different people. Every year, it was a struggle -- do you know a guy so we could get a good deal? We wanted to be the people that everybody knew."

Beste and Carlow formed a holding company, Vici Enterprises, for their current companies and others that they hope to start.

The expert says: Stavig, who has consulted with Carlow and Beste as they build the Alumni Advisor as an independent company, said that the former classmates should focus on producing a high-quality publication.

"If they're going to be a premium quality provider, they've really got to pay attention to a lot of details," Stavig said. "They've got to make sure the universities and the sponsor have a clear understanding of how the book is being used by students, to make sure they're delivering them the most value."

Beste and Carlow have done well to concentrate on finding new university markets.

"They've done a good job securing relationships with key universities while bringing in professionals to do the content, to do the actual publication," Stavig said.

"They've got very big aspirations for it, which is great and which we encourage."

Todd Nelson is a freelance writer in Woodbury. His e-mail address is todd_nelson@mac.com.