Student-Managed Business

by Lucha Ramey, Media Relations Director

Rattler Enterprises, a student-managed business, has been three years in the making. As the students will tell you, it's been a labor of love filled with lots of trial and error, twists and turns, and highs and lows. It was not only the students' determination and dedication, but also a little TLC that saw it through to fruition.

The idea for a student-run business was first proposed in 2007 by then Bill Greehey School of Business Dean Keith Russell, Ph.D. Marketing major and E-Scholar Dyana Garcia was one of the students in the original group that worked on Russell's idea of a Bangladesh import business.

"The words student managed business, operated by the students for the students, sounded like a great learning experience," Garcia said. "I learn by doing. I thought this would be a great opportunity and I wanted to be a part of it."

After Russell's untimely death, students re-evaluated their idea and, instead, decided to focus on the needs of University offices and student organizations. Their idea – a copying and printing business – was short-lived as they quickly realized that both services were already available on campus. But the students didn't give up. They again examined what was used regularly on campus, but not offered as a service. They found the answer written on the front of every student in the Quad or sitting in class – T-shirts!

Rattler Enterprises unique among universities

Once the idea was decided upon, Dyana along with psychology major Lindsi Wilson, E-Scholar and triple business major Stephanie Baumgart, and two other students who have since graduated, quickly jumped into action. With support and guidance from then Interim Dean Jim Welch, Ph.D., the students researched screen printing equipment, identified a potential location and wrote a business plan that included market analysis, revenue projections and a safety and environmental impact study.

There are only a handful of student-managed businesses nationwide, including Flyer Enterprises at St. Mary's sister school, University of Dayton. Stephanie, Dyana and Lindsi visited Dayton and met with its student executive team to get insight and advice on establishing Rattler Enterprises – one of the few student-managed businesses at a Texas college or university.

According to their business plan, St. Mary's students project a $7,500 profit in the first full year of operation. Initially, profits will be reinvested back into the T-shirt company so they can fill larger orders, like the Alumni Association's Fiesta Oyster Bake T-shirts.

As revenues and the business grow, student employees from all academic disciplines will be hired. Eventually, the Rattler Enterprises umbrella will grow to include more business divisions. As part of Rattler Enterprises' mission, profits exceeding $200,000 will be donated back to the University for scholarships.

Alums step up to finance business plan

The comprehensive business plan was presented to alumni Tom (B.B.A. '88) and Leti (B.A. '89) Contreras – another layer of TLC in the story – and their banker Steve Villarreal (B.B.A. '89). The Contrerases, who own Texas Security General Insurance Agency Inc., are long-time supporters of St. Mary's and Tom has often participated in the business school's Professor for a Day program.

"They say the first impression is always the best impression and mine was really good," said Tom of the students' presentation. "The students were phenomenal; they had it all together and backed up their business plan with enthusiasm. I was very impressed. I remember thinking ‘Wow, things have changed since I was a student!'"

Leti, a teacher education major while at St. Mary's, was interested in the experiential learning the business would provide. "It feels good to be able to give this opportunity to students. I was lucky enough to get real-world experience through student teaching. I'm excited to be able to give this same experience to business students."

The Contreras' generously donated $50,000 to the student-managed business in 2008, and with a nod to its benefactors' initials, TLC Tees was created.

Now that the students had the seed money, the real challenges of starting a business still lay ahead. Originally, the T-shirt design business called for using a traditional screen press. The equipment is big, loud and smelly from the chemicals used, and while the students had accounted for these challenges in their safety and environmental analysis, it meant construction was needed on existing space in the Albert B. Alkek Business Building to accommodate the equipment.

By the summer of 2009, leadership of Rattler Enterprises was in place. CEO and Director of Finance Stephanie Baumgart, Director of Marketing Dyana Garcia, and Director of Human Resources and Operations Lindsi Wilson put the idea of the custom T-shirt business temporarily on hold to consider businesses that would capitalize on the opening of the University's new freshmen residence hall. The students wrote a new business plan, including market analysis and revenue projections, for operating a convenience store in Founders Hall. Unfortunately, the idea presented more challenges than could be overcome in a reasonable amount of time.

Success grows out of perseverance

But through it all Stephanie, Dyana and Lindsi persevered, injecting their own TLC into Rattler Enterprises every step of the way. Just when they thought they were stymied, they learned of new T-shirt printing technology that made TLC Tees viable again. The new equipment – essentially a giant inkjet computer printer adapted for T-shirt printing – was less expensive, more compact and not as messy. They could begin operations immediately.

Finally after three long years, Rattler Enterprises' first initiative, TLC Tees, officially opened for business in February of this year, and it's been more of a learning experience than the students ever thought it would be.

"I never imagined it would be so much work," said Dyana, "but it helped me grow and find out what I was capable of doing. I also learned a lot about the St. Mary's community; everyone was always there to lend a helping hand. I realized we really are a family."

Reflecting back on the experience, Stephanie said, "Everything doesn't always go right, but nothing always goes wrong. What separates the success stories from the forgotten chapters is perseverance. We faced many hurdles … and there were many occasions when we thought we had hit a dead end. Instead of accepting failure, we just worked harder and kept looking for new paths to our ultimate goal." In just four short months, TLC Tees has filled 11 orders, made 300 T-shirts, generating nearly $3,000 in revenues. Stephanie and Lindsi graduated in May, but not before helping new CEO Dyana hire four new students to come on board over the summer as Rattler Enterprises' new executive team.

"My advice to the next team of students is to not sweat the small stuff," said Lindsi. "Everything comes in waves and as long as the lines of communication are open, you can accomplish anything and everything together." And it doesn't hurt when there's a little TLC in the mix either.