Class Action

Small businesses increasingly turn to M.B.A. students for advice. But they may have to wait in line.

By Shelly Banjo

With the U.S. economy softening early last year, the owners of Julian Krinsky Camps & Programs in King of Prussia, Pa., looked for advice on attracting more customers from abroad.

The company, which offers sports, fitness and educational programs, got help from three M.B.A. students. And even better: The advice was free.

Julian Krinsky found the advice by going to a student consulting program at the Wharton Small Business Development Center, on the campus of the University of Pennsylvania’s Wharton School in Philadelphia. The Wharton students suggested the company focus on South Korea, based on criteria including the number of students with English-language skills and the demand for U.S. university education, since the company offers programs designed to help prepare students for college.

“It was helpful to have students with a young, entrepreneurial spirit analyzing our business opportunities from their perspective,” says Tina Krinsky, the company’s chief executive. And, she adds, it was valuable to have a thoroughly researched plan with hard data to supplement the company’s own ideas about expansion.

The Wharton students, whose research included interviews with parents, students, schools and guidance counselors, also offered marketing strategies specific to South Korea. For instance, they suggested the company market itself through hagwons, the after-school study programs that many South Korean students attend. Many hagwons help organize groups of students who would like to travel, and “as these organizations are highly respected by parents and offer convenient access to students, we found it most valuable” to approach them, says Ms. Krinsky. These and other contacts brought a “handful” of Korean students to Julian Krinsky programs last year, she says, and “we expect to see more applicants this year.”

Small businesses throughout the country have discovered the benefits of student consulting programs at business schools or at small-business development centers. These programs can help small businesses identify new sources of funding, tap new markets, improve their marketing strategies and find other ways of doing business more efficiently and effectively, all at no cost or for a fraction of what a professional consultant would charge.

Businesses may have to compete for acceptance to some programs. And given the limitations of some students' experience and the time they can devote to any project, companies shouldn't expect too much. But these programs can provide crucial help in weathering the economic downturn or taking advantage of new business opportunities.

—Ms. Banjo is a reporter for Dow Jones Newswires in Jersey City, N.J.

Source: The Wall Street Journal - Feb. 23, 2009
Original link: Class Action