Penn State - Bootstrapping Student Start-Up - Open 2011

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NCIIA Annual Meeting

Robert Beaury Penn State Univ.

rjb34@psu.edu 814.574-3059Website: http://e-ship.psu.edu

How to Bootstrap a Student Start-Up

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Presentation Overview

“Presentation reviews how PSU Engineering Entrepreneurship Minor helped boot strap a student start-up

named DiamondBack Automotive Accessories.”

http://www.diamondbackcovers.com/

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Engineering Entrepreneurship Minor

•Started April 2002•Undergraduate Eng., Bus. IST & Others

“General Electric Told Us We Needed To Do More”

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Objectives

•Cross Functional Teams•Problem-Based Learning•Experiential Learning•Real World Experiences

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The Dilemma

Entrepreneurs

Or

Intrapreneurs

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The Ingredients:Ethan Wendle & ENGR 407

“An incredibly talented student who had already decided that he was going to start a business.”

“A class focused on creativity, innovation and starting a new business.”

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The First Academic Steps

• Class Project• The Partnership

• Winning the Class Competition• Winning the Design Expo Competition

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The Next Academic Steps

• Teaching Assistant•Independent Study Classes

• Market Research• Provisional Patent Submission

• Prototype Development

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The Decision:“Should I Stay or Should I

Go”

• The window of opportunity•What is our responsibility as educators

•The academic perspective•The entrepreneur’s perspective

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DiamondBack Automotive Accessories

• Business start: 2003• Considerable support from family & friends

• Continued support from PSU • Class projects• Student interns

• Garber Fund investment• Mentorship, Mentorship, Mentorship

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DiamondBack Automotive:“Where are they today”

• $3.0M in sales•Profitable

• Mfg. in Philipsburg, PA• Sales Office in Harrisburg, PA

•Employs: 25+ people

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Lessons Learned

“The entrepreneur and the intrapreneur have different needs and you must determine which is

your priority and if it is possible to serve both.”

“Specifically, is it the goal of your program to startsuccessful businesses?”

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Entrepreneur Needs

• Educational Mentorship“You must be willing to commit significant hours

at outset and maybe for years”

• Flexible Curriculum“Allow certain students to spend time working on their ventures, while other classes/students

support their efforts.”

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Entrepreneur Needs

• Money“Your program needs a fund to help

get businesses started - $100k a year is ideal.”

• Professional Connections“Must establish an active network of alumni

and local entrepreneurs.”

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Ethan Wendle Today

President of DiamondBack Automotive

“Plans to complete his degree, wants our advice, our help, wants to help the

Program”