As a result of new rules issued by the Office of Residential Life, the ownership of most of the student-run businesses on the South Forty will have to change hands before the end of the semester.
“The [student entrepreneurial] program has been so successful that we have had to ask that seniors sell or dissolve their businesses before Commencement to allow other interested students the opportunity to try their hand at owning and operating a business,” said Karen Grimes, Residential Life’s assistant to the director of operations.
According to Ken Harrington, the Olin School of Business Senior Lecturer in Entrepreneurship, the South Forty businesses have boomed because each has created a unique niche on campus and provided a service to students.
“They have found a service or an approach to selling a product that creates value or convenience for the students on campus,” said Harrington.
Students agreed.
“Wash U Wash is really helpful for me,” said freshman Allison Cohen. “I give them my clothes, and when I get them back they are always folded and everything’s clean. I haven’t had any problems with them at all.”
But, because of the success of these stores, Residential Life has created a new rule that will affect such businesses as Nate’s Place, Wash U Wash and South Forty Video. According to Grimes, the Residential Life told the owners of these businesses that they are responsible for the sales of their stores.
“We ask that they sell to another WU undergraduate enrolled as a full-time student and that they provide the necessary paperwork to our attorney for verification,” said Grimes.
Some South Forty businesses have already found buyers. Nate’s Place owner Nate Breindel, a senior, decided to sell his store on the WU campus to Nate’s Place vice president Reggie Binford. The owners of Wash U Wash reached an agreement to sell their business to sophomores Jon Krigel and Doug Payne.
Other South Forty business owners are still trying to decide on appropriate buyers. As they go about doing so, Harrington said they should reflect on the buyer’s potential.
“Normally, when you sell a business, the owner of the business would primarily consider two things: One, how adequately would they carry it forward if I sell it to them? And two, what’s the price or the deal they would cut in terms of the value of the business?” said Harrington.
At South Forty Video, current owners Andy Buhayar, Jonathan Agnich and Joel Casper have begun considering these issues and more as they look at prospective buyers of their business. Buhayar said that South Forty Video has garnered significant attention from students considering buying the business.
A number of students also told the Office of Residential Life that they are interested in owning an on-campus business, Grimes said.
“We have had over 20 students express interest in starting their own businesses since August, and we have had several others interested in finding out more about buying an existing business,” Grimes said.
Current owners said they have reaped their rewards both personally and financially by running their businesses.
“My partners and I would all agree that in addition to the financial success and rewards that we have received from Wash U Wash, the real value has come from the experience of owning your own business, the social interaction with students and faculty, as well as the confidence it has given each of us as we interview for jobs and grad schools for next year,” said senior Corey Schneider, one of the current owners of Wash U Wash.
Buhayar added that his experiences running South Forty Video have given him assistance in his planning for the future.
“Running South Forty Video helps me with job opportunities, which is a huge thing,” Buhayar said. “This definitely stands out on my resume.”
Harrington said he believes students receive important benefits from owning a business.
“Any person who is actually involved in running a small business gets a very good perspective on some of the issues they will encounter-people issues, customer issues, financial management issues-and I think those are all good and important lessons to learn,” Harrington said.
For Breindel, running Nate’s Place has been such a good experience that he plans to open numerous other Nate’s Place stores at universities throughout the Midwest, including at campuses in Illinois, Missouri and Kansas, in addition to the Nate’s Place locations he already has throughout St. Louis.
Contact Jon at
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