Class Action

UIS needs to add a program like this. If the university wants to become, in the words of Chancellor Richard D. Ringeisen, "one of the best small public liberal arts universities in the nation.", then UIS will have to lead with bold ideas that build skills that this generation needs to compete in the global economy.

There are plenty of small and medium-sized businesses in this region that could benefit from a program like this.



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.

"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.

Bread Winner
While programs differ in size and scope, typically teams consisting of two to 10 M.B.A. students or undergraduate business students take on semester-long consulting projects for small businesses, including nonprofits. Students' backgrounds vary, but some have years of business and entrepreneurship experience. In any case, they are advised by faculty members or outside professional consultants. Programs offered through small-business development centers, which are affiliated with the U.S. Small Business Administration, typically are free. Fees for programs offered directly by schools vary widely, from about $300 to $10,000 for 500 to 800 hours of consulting, for the most part, though charges can go as high as about $20,000.

The Community FoodBank of New Jersey got help from local students in planning a new line of business. Kathleen DiChiara is chief executive of the food bank, which takes in donated food and distributes it to nonprofit organizations, emergency food pantries and shelters. When she realized hundreds of donated bagels were going stale before they reached hungry patrons, she wanted to find a solution.

Officials of the food bank came up with the idea of using the donated bagels to create a bread-based product they could sell for a profit in bakeries and grocery stores. That not only would prevent waste but also generate income to support increased demand for the food bank's services, and create jobs in the community. But officials quickly realized they didn't have the business knowledge to bring the idea to life.

In September 2007, Ms. DiChiara turned to the MBA Team Consulting Program at Rutgers Business School-Newark and New Brunswick, in New Jersey. The program serves between 40 and 50 businesses a year. Teams of six to 10 students spend about 14 weeks with each business. Fees range from $10,000 to $20,000 per project, depending on the business's revenue.

A semester later, the food bank (which paid $5,000, before the program raised its prices) received a business plan to turn the donated bagels into bagel chips and distribute them across New Jersey. The students researched the costs of new equipment, packaging and labor. They conducted taste tests and surveyed consumers to find out how much they would pay for a bag of bagel chips knowing the profits would go to charity. They researched the competition, outlined production logistics and recommended a marketing campaign.

The chips aren't on retail shelves yet, but the food bank conducted three sales tests last summer at local farmers' markets, selling out 300 of the $4 bags each time, Ms. DiChiara says. Using projections from the Rutgers study, the food bank hopes to make $100,000 a year in profit through bagel-chip sales.

Pickiness and Eagerness
To be sure, acceptance to these programs can be competitive. The schools, after all, are looking for situations where their students can learn the most. Generally, that means universities are looking for small businesses that have been operating for at least three years and may have "plateaued, so a strategic business plan becomes a growth plan," says Paul Belliveau, director of the Rutgers program.

Schools prefer local businesses, to facilitate face-to-face meetings with students, but will sometimes consult for out-of-town projects. Some may also favor businesses that could offer employment opportunities for students after they graduate. And programs often require frequent interaction with the companies' senior management and access to the firm's financial information, both of which may make some potential clients uncomfortable.

Paul Kedrosky, a senior fellow at the Ewing Marion Kauffman Foundation, a nonprofit based in Kansas City, Mo., that fosters entrepreneurship, says the student programs are cheap and effective -- if properly managed by the client. He says business owners should keep in mind that students are "often tail-waggingly agreeable to do all sorts of stuff that they often have no business doing."

Mr. Kedrosky suggests asking students to stick to tactical, manageable tasks such as conducting surveys and product research, where the business owner can set clear deadlines and expectations. Students generally have only a semester to complete tasks, he notes, and may not have deep knowledge of a client's particular industry. So while a "strategic analysis of your industry is sexy and fun, they might not have the chops to do it," he says.

Small businesses can also take advantage of other, noncompetitive but less-personalized programs at many small-business development centers. The SBA offers free or low-cost consulting sessions on a variety of broad topics such as cash-flow analysis and accounting. A list of development centers and their contact information and Web sites can be found on the SBA's site, sba.gov. In the "Services" menu, click on "Counseling & Assistance."

—Ms. Banjo is a reporter for Dow Jones Newswires in Jersey City, N.J.
Write to Shelly Banjo at shelly.banjo@wsj.com