Spring 2013 BGSIE by Beta Gamma Sigma

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Faster. Leaner. More Efficient. How Small Businesses are Leveraging Technology to Get Ahead in the Post-Recession Economy

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what’s inside 2

A Message from the BGS President

The Second Century of Beta Gamma Sigma

Ethics in the Genes: The Ethical Legacy at Texas Instruments

Growing without Borders or Employees: The Current Reality of Small Businesses Around the World

BGS Corporate Contributors and Affiliates Beta Gamma Sigma thanks those organizations that generously support the Society’s programs and services. Beta Level Sponsors ($50,000+)

Bloomberg Businessweek

Small Steps, Big Goals: Complementary Minds

Small Steps, Big Goals: Born to Run

Gamma Level Sponsors

Small Steps, Big Goals: Twist of Lime

Bank of America

Small Steps, Big Goals: Painless Windows

Getting an Early Start

From Wall Street to Main Street: The Potential Power of Crowdfunding for Small Businesses

BGS Alumni Network: A Growing Global Community of the “Best in Business”

BGS is Everywhere Photo Submissions

Gifts from Friends

Fortune

($25,000-$49,999) GEICO

KPMG and the KPMG Foundation

Other Contributors and Affiliates 1-800-Baskets.com 1-800-Flowers.com AACSB International AACSB Accredited Business Programs Apple Store AVIS Rent A Car System, Inc. Becker Professional Education BGS Cell Phone Discounts Church Hill Classics Corporantes, Inc. Enterprise GoDaddy.com Graduate Management Admission Council (GMAC) Herff Jones

BGS International Exchange Beta Gamma Sigma 125 Weldon Parkway Maryland Heights, MO 63043-3101

Spring 2013 Volume 12, No. 1 Circulation: 102,315

Hotels.com Kaplan CPA Review Kaplan Test Prep Lenovo LIFE, Inc. McGraw-Hill Professional Officescape Pet Assure

email: bgshonors@betagammasigma.org phone: 314-432-5650 website: www.betagammasigma.org

The PhD Project Princeton Review SIRVA – BGS Home Benefits

If you have any questions or comments about this issue of the BGS International Exchange, please forward them to exchange@betagammasigma.org. Beta Gamma Sigma is a not-for-profit, 501(c)(3) organization.

Supportrix UPS Wall Street Health Insurance The Wall Street Journal The Week

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A Message from the BGS President

appy BGS Centennial! That’s right, as you’ve probably heard Beta Gamma Sigma reached its 100th anniversary on Feb. 19, 1913. This is certainly a time to celebrate, and it’s been great to work with so many of you to make this a truly special occasion. Your photos with Prof. Elwell, participation in special service projects, and involvement with other events has been great. It’s been a wonderful Centennial year. So it’s obviously time to take a step back, breathe a sigh of relief and maybe even rest a little, right? That’s not the way I see it. Having reached 100 years is a momentous occasion, and the Board of Governors and staff are proud to have played a part in preparing for – and actually celebrating – the milestone. However, there has been a tremendous amount of motivation built over the last year or so, and now is not the time to rest and reflect. I believe Beta Gamma Sigma has been mandated by its membership to evolve into an even more relevant organization for its lifetime members. Missing this moment, in my opinion, would result in a step back for BGS’s development. I have had the pleasure of attending several events – the Meet the Leaders of Business event at Saint Louis University, for example – and members have made clear they are ready for a renewed engagement with their Honor Society. Your fellow members have told me often how proud they are of membership, and now they want to know how they can give back and participate in more significant ways. That to me is a challenge, and while it won’t be easy, I believe the entire organization must be prepared to meet it. When I think that more than 725,000 individuals have met and accepted the tough standards of BGS lifetime membership, it inspires me to think positively about the future. When I consider that 525 of the world’s best business schools have chosen to honor their best students, I am reminded how important BGS is to so many faculty members and deans of business schools around the world. Finally, when I’m informed by the staff that yet another group of alumni members – from whatever corner of the world they may be found – have decided to form an alumni chapter in their area, I know the value of lifetime membership in Beta Gamma Sigma continues to grow. So we’ve accomplished a great deal in our first 100 years. So again, one might ask, is it time for a little rest? The answer is no. If we fail to build on the momentum from this Centennial celebration we’re missing a fantastic opportunity. I personally have spoken to more members in the last year than ever before, and other Board members, staff and chapter representatives have done the same. What we’ve found is a real need for continued growth; for more value; for a greater connection to the Society well beyond one’s time at the business school. This is a lifetime membership, after all, and we’re committed to making the next 100 years better for

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everyone involved. The challenge, of course, is how to proceed. I’m proud to report that the BGS Board will be involved in a strategic planning process throughout 2013 that will result in a clearer picture of the Society’s needs and strengths going forward. We will take an in-depth look at where we’ve been, but more importantly will focus on the opportunities and challenges that will confront us in the future. Global business and business practices continue to change rapidly and higher education is changing in concert, so it can’t be business as usual. We must prepare to be more relevant in our members’ lives in the future. Now I want to present a challenge for you. In past letters in this space, I – and my predecessors – have mentioned that we’d like your input on various issues or projects. Historically, we get a small number of responses to these requests and those are always greatly appreciated. But if BGS is going to reach its full potential, we need the power of our entire membership. Not only am I asking for your thoughts through this letter, but we will be contacting members directly in the coming months asking for their willingness to help us plan our future. This is a very important undertaking, and when asked, I hope you will make your expertise and opinion available to the Society. As dean of two business schools I was always proud to play my part in the collegiate chapter of Beta Gamma Sigma on campus. I saw the excellence of the invited students, and the pride they and their families had for the students’ accomplishments. When I was asked to join the Board it was quite an honor, because I looked at it as a way to help even more students and lifetime members. Now as president I’m convinced there is unlimited potential for Beta Gamma Sigma to positively influence the lives of its members. In addition, BGS members can be at the forefront of affecting positive change in the world of business. Those are lofty goals, but when you think of the global power of our 725,000 members; of our 525 collegiate chapters; of our 28 alumni chapters, you realize these goals can and must be met. I have been reinvigorated by these challenges, and I hope you are as well. Please consider giving of your time and talents as we continue to build our second century of excellence. BGS has accomplished much in its first 100 years, but I hope you agree this is not the time to rest and reflect. We must act and engage.

William (Curt) Hunter President, Beta Gamma Sigma

The Second Century of Beta Gamma Sigma Beta Gamma Sigma marked its 100th year of Recognizing Business Excellence on Feb. 19, 2013. As Beta Gamma Sigma moves into its second

Platinum Sponsors

century, the Society plans to continue the following programs beyond the Centennial Celebration. We hope that you will participate, and continue to foster the BGS spirit in your community. Meet the Leaders of Business Beta Gamma Sigma recognizes the importance of letting the “Best in Business” learn from the best of business. Consequently, the Society plans to continue this valuable program as a gift to its members. New locations, top-rated speakers, and many more topics will be explored as Beta Gamma Sigma continues this special guest speaker series. We encourage you to attend future events in your city, or to tune into the events via the Internet.

Beta Gamma Sigma thanks the following sponsors of its Centennial Celebration: AACSB International GEICO KPMG and the KPMG Foundation Gold Sponsors Pepperdine University Saint Joseph’s University Saint Louis University Case Western Reserve University / Thompson Hine Silver Sponsors Bloomberg Businessweek Ohio Northern University La Salle University Lenovo The University of North Carolina at Charlotte The University of North Carolina at Greensboro University of Portland Radford University Temple University Valdosta State University University of Wisconsin Oshkosh

BGS Gives Back Day of Service In the fall of 2012, BGS members read to intercity students, built wheelchair ramps, and everything in between. BGS will hold its second Day of Service on October 26, 2013 with hope that even more members and chapters will give back their talent and time.

Bronze Sponsors 1-800-Flowers.com University of California, Riverside Southern Illinois University Edwardsville Texas State University-San Marcos The University of Tampa The University of Tulsa Willamette University

BGS is Everywhere BGS members had a lot of fun with Professor Elwell, the Society’s stuffed owl (see photos on page 27). Members are encouraged to continue taking photos and sharing them with the Central Office.

Contributors Clark University University of Detroit Mercy University of Florida Grand Valley State University Kaplan CPA Review Monterey Institute of International Studies University of Nebraska at Kearney Rollins College St. John’s University Seton Hall University

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Ethics in the Genes The Ethical Legacy at Texas Instruments By: David H. Blake, Director of the BGS Center for Ethical Business Leadership

ore than 80 years ago, one of the earliest and still premier high tech companies was founded in Dallas, Texas – the famed Texas Instruments (TI) company. Its founders not only had a concept to link science and technology to business opportunities and society’s needs, they also had a specific and consciously-articulated idea of the kind of company they wanted to build – one built on core values and high ethical standards. This commitment has been refined, updated, and operationalized over the years, but its central importance has never waivered and is still a defining characteristic of the company. Subsequent generations of TI executives and employees have embraced the role of being good stewards of the ethical legacy and the corporate culture established decades ago. So much so that TI has been consistently cited in Ethisphere’s rankings of the world’s most ethical companies. In a January discussion with David Reid and David Solomon, respectively the retiring and incoming ethics directors at TI, they talked about a concept that EBL had not heard before – that TI consciously invests in its culture and its strength and importance and also in its commitment to ethical behavior as a fundamental part of the way it conducts its business. TI’s culture is based on a set of core values and principles: Integrity (Respect and value people; Be honest), Innovation (Learn and create; Act boldly); Commitment (Take responsibility; Commit to win). Embodied in these values and pervading all the actions and decisions of the company is a business culture of always doing the right thing and winning in the right way. This article discusses some of the ways TI implements and reinforces its long-standing commitment to doing the right thing while building a successful and highly-respected business.

Communication TI executives talk about the company’s values and culture, though not incessantly to the point of boredom. They take advantage of opportunities to remind employees, whether in the U.S. or elsewhere, that TI is a company that is values-driven as well as success-focused. The company strives to do the right thing regardless of the impact on the bottom line. It holds briefing sessions with suppliers and customers and emphasizes how they too must respect the way that TI chooses to do business if they wish to be business partners. In professional or college recruiting, those doing the recruiting and conducting the interviews make sure that prospective 4 bgs international exchange Spring 2013 www.betagammasigma.org

employees understand the TI culture and the implications for employee behavior no matter what level they may be hired at. Some job applicants don’t wish to work in such an environment and self-select out; others relish the idea. The hiring process is very focused on whether an applicant will be able to abide by the strict personal responsibility suggested by the corporate culture.

Training To guide and ensure ethical behavior, the company provides extensive training that leads to a greater understanding of the foundational values that underlie TI’s ethical culture. The company offers programs that are specifically focused on job, function or technology matters and the potential ethical issues that could arise from them. Cases, scenarios, headline business news or stories are used to present workshop participants with complicated situations relevant to their positions requiring business analysis, ethical reasoning and the exercise of judgment. While TI does have a code of conduct with guidelines and rules, the company understands that ethical issues can arise quickly and at any level. Therefore, the company wants to ensure that the core values and ethical principles provide the basis for employees to do the right and wise thing as a result of their good judgment. As the TI executives said, “We have a lot of smart people here; we expect them to make wise decisions … grounded on these values…” with the implication that the core values lead to appropriate decisions and actions by employees and not just a set of rules.

Ethics and Small Business: Tips from TI. • Define the company’s values and ethical culture early on. • Invest in your culture. Make an ethical culture a goal and a reality. • Founders and owners must live and model the ethical principles. • Support advice seeking by employees on ethical issues. It is not a negative to ask for help. • Hire for ethical compatibility and then reinforce. One bad apple can…. • When it comes to ethics, don’t push the margins. • Your business partners must support your ethical standards. If not, find other partners. • CEOs and owners need to have people to turn to for advice on ethical matters – not just family, friends, and business associates. Avoid establishing “group think”.

Mentoring and Guidance TI employees are encouraged to seek advice when confronted with a situation that presents an ethical dilemma. Employees should always feel comfortable and confident in seeking help or another perspective, and the TI environment supports that. A mentoring program is established to help employees, but it is done to facilitate open discussions and candor with someone who is not a supervisor or other person with direct authority over the employee. Even at the Board of Directors level, nine of the 10 members of the board are outside directors with the result that top management always has access to a different set of experiences and perspectives.

Learning from History Given TI’s commitment to doing the right thing, it carefully reviews those situations where an ethical dilemma presented a problem or resulted in a misstep. It dissects such occurrences to understand the issues–what went wrong or right, how to avoid or mitigate such situations in the future, and what improvements in actions should be considered. The lessons learned are cascaded down through the company, which provides useful input at all levels but also reinforces the primacy of doing what is right. The company also collects trend data on the kinds of issues and problems for which employees seek guidance. By paying close attention to ethical issues faced by employees, the company consciously seeks to mitigate and manage risks through corrective and preemptive action.

A Higher Standard TI has a zero tolerance policy for illegal behavior, but that is a minimum standard. In its overseas operations, for

Left: David Reid, Ethics Director - Emeritus, Texas Instruments Right: David Solomon, Ethics Director - Current, Texas Instruments

example, the company follows the local laws, but at the same time often acts according to higher standards than required by law emanating from its commitment to ethical behavior and doing the right thing. In a somewhat similar fashion, while being a formidable competitor, TI cautions its employees against getting too close to the line of what is ethical and what is not. That line can be too easily crossed, especially in situations of competitive pressure. Indeed, as part of its risk management strategy, the company seeks to identify in advance which geographical locations, which functions, and which markets and technologies might present potential ethical issues as a result of competitive or environmental pressures.

Individual Responsibility Texas Instruments has a saying that sums up each individual employee’s role in creating and maintaining the TI culture: “TI is a good company, and one reason is that I am a part of it.”

Video excerpts from this discussion, along with a variety of other resources, are available at the BGS Center for Ethical Business Leadership.

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Growing without Borders or Employees

The Current Reality of Small Businesses Around the World By: Katherine Davis, BGS Communications Associate

Innovation and technology are leading the way for small business growth around the world. With rising GDPs, unique startups are popping up in many different countries. Still, employment rates are sluggish, and it seems the new trend in the post-recession world of small business is to hire fewer employees, keep costs low by relying heavily on the web and remaining self-sufficient.

ario Vulinovich, a BGS member (University of Auckland, 2008) and president of the New Zealand Alumni Chapter, has been busy managing, operating and getting the word out about his new small business, Light Knight. Based out of Auckland, New Zealand, but serving customers around the world, Light Knight products include powerful lights that can be attached to workers’ standard reflective vests. It is chiefly operated by Vulinovich and his business partners, with these owners contracting with different technology developers, software writers and experts as needed. “My business partner knew someone who had gotten injured while working at night,” Vulinovich explained. “He initially came up with a prototype for the Light Knight product, and I joined with the company to help commercialize the business. Basically, I became a cofounder. The idea behind it was, of course, to save lives. We just needed to sell it by making it lighter, more efficient and cost-effective.” Since then, Vulinovich has been traveling around New Zealand and the United States to promote the new product and talk with potential customers—construction companies,

forestry organizations, railway companies, airports and others—about what they most want out of vestadhesive safety lights. Vulinovich has seen good response to the product, but admits that the current economic times have had an impact on some companies’ decisions. “It’s tougher right now because, even though company heads will admit that safety is important, people’s budgets have been cut,” he said. “Whereas before, many companies would have just said, ‘Oh, yes. That’s practical. We need it.’ Now, a lot of budgets have been trimmed, and this has certainly hurt a lot of small businesses or startups.” Statistics New Zealand’s “Number of Enterprises – By Industry” report for February 2012 listed companies like Light Knight that are considered “non-employing enterprises,” or companies that do not really employ additional fulltime employees, as accounting for 69 percent of the total enterprises in New Zealand. Small companies in other parts of the world have been following the trend of hiring fewer employees as well. The 2012 U.S. Bank Small Business Annual Survey showed that, although 20 percent of all national companies reported that they’d be hiring more employees in 2013, many of those were larger companies that made $1 million or more in annual sales. Twenty-six percent of

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“Before, many companies would have just said, ‘Oh, yes. That’s practical. We need it.’ Now, a lot of budgets have been trimmed, and this has certainly hurt a lot of small businesses or startups.”

companies in 2012 fell into the “no employees” category, and 31 percent of companies had only two to four employees. David Gillette (BGS, Washington State University, 1987), professor of economics at Truman State University, believes that the economy has been recovering from Mario Vulinovich, Co-founder, Light Knight “the great financial crisis” since June 2009. But he sees this more in terms of the gross domestic product (GDP) rather than with big changes in the employment rates. have made it their job to remain “There’s certainly a lot of uncertainty right now. The recession technically optimistic and help small companies really ended in June of 2009, but recessions and expansions are measured in succeed. Nicole Elmore (BGS, terms of the GDP,” explained Gillette. “This is how much we produced, not the Minnesota State University Moorhead, employment rate. During the recession, business owners had to figure out how 2011), the founder and CEO of to make the most of the fewer employees they had left while still picking up EntrepreneurLead.com, is one such productivity.” example. While Gillette sees this as part of the trend of small businesses in a postHired by new startups and recession environment, he is optimistic about the future of both the U.S. and global existing small businesses, Elmore helps economies and sympathizes with the concerns of small business owners. her clients create business plans, build “We’re growing slowly, and there has been greater consumer confidence, but and grow products and services and there’s still a number of things that I think small businesses would be concerned offers different online workshops as about,” he said. well as free consultations. She began Gillette says many small businesses are concerned over tax liabilities. He also EntrepreneurLead.com while she was mentions that sequestration will likely have an effect on these businesses. still working a full-time job. “Small businesses will want to know what’s happening in terms of higher “I built my entire business in my taxes or spending cuts,” Gillette said. “If I were about to start a small business, I’d evenings and weekends while still just be really careful.” having a full-time job, being a wife, He sees the advancement of technology, and the ability of many small volunteering in various organizations businesses to now operate online, as a huge advantage for those companies—even and trying to have a life outside of if it means they don’t need to hire nearly as many employees to sell their products work,” Elmore said. “It’s been a or services. journey, but I have finally been able “I’m a glass-half-full type of guy, and I see positive things going as well,” to retire from the corporate world and Gillette said. “Things like technological development are important for starting a focus on my own business ventures small business at the moment. Being online is significant. One of the key things we full-time.” discuss in my economics classes is that, if you can expand the size of your market, Elmore is in charge of all aspects you can bring down your average cost per service or product. One of the best of the online company as its sole fullways to expand a market is to go online. Many businesses, depending on what time employee, maintaining its site, they sell, do not need a large labor force. If you don’t need a lot of employees, managing all of its operations and then you might not need a huge worksite for all of them. This takes out a lot of the relations, doing interviews, managing overhead.” online courses and overseeing guest Borrowing is another area that small businesses have seemed to avoid as they posts. tighten their belts and focus on growing the company, despite efforts from the The startup pattern of Federal Reserve Bank to make lending more affordable. EntrepreneurLead.com follows a In a recent Reuters article, PayNet founder Bill Phelan explained the lack of trend that is on the rise—that of the borrowing or employment growth by saying, “It’s a play-it-safe kind of economy technology-based industry. A “Small for small businesses. They are not getting pulled in by the cheap credit and extra Business Revenue Index” published money floating around. They are continuing to hold back in investment growth.” by Intuit in April 2012 showed that the One factor that might be contributing to the lack of borrowing from these “professional, scientific and technical small businesses is that small business owners still seem to be approaching the services” industry—including current state of the economy with caution. professions such as web designers, The National Federation of Independent Business’ Small Business Optimism consultants and architects—had seen Index looks at the confidence levels of U.S. small businesses based on 10 separate the greatest growth at 68 percent. factors. According to the March 2013 report, small business optimism points Because her company is webincreased to a 90.8 mark in February 2013 from the previous month’s 88.9 mark. based, Elmore is not constrained by Yet, the NFIB concluded that the Index was still “on par with the 2008 average,” regional or national boundaries. She whereas in 2006 and 2007, the optimism index was around 100 points. In spite of this continuing uncertainty, there are other business owners who Continued on Next Page

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Growing without Borders or Employees (continued from page 7)

sees this as a great benefit to her business. “The majority of EntrepreneurLead’s clients are located in the United States. However, we do have a small portion of international clients that are continuing to grow the international business,” Elmore said. “Due to the nature of being able to conduct business online and over the phone, completing international projects has not been any different than conducting U.S. business.” Businesses like Light Knight and EntrepreneurLead represent a current and growing trend of new small businesses around the globe. By taking advantage of technology and the web, they are minimizing costs, increasing the size of their markets and maximizing the owners’ different roles within the companies. In essence, they are following Gillette’s advice to his students. “I tell my students to be as frugal as possible,” said Gillette. “In my Principles of Economics class, we cover a personal finance chapter. I always go in there

with a spreadsheet, showing what happens if you only make minimal payments on a credit card, if you spend too much and other things of that nature. I always tell them, ‘Those who understand interest, earn it. Those who don’t, pay it.’ There are some things we will need to borrow for, but I’ve always had concerns over debt and not accumulating it.” In today’s post-recession economy, many small business owners like Vulinovich and Elmore share Gillete’s concerns. They are making their business models work, growing their companies and not setting limits on potential clients and markets. While the road ahead for small businesses is still a bit uncertain, these owners believe the situation is improving. Small businesses still exist, and many are growing financially, even if not in employee numbers or physical size. The small business model has certainly had to adapt with recession and post-recession changes. Perhaps now, it has officially evolved.

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Small Steps, Big Goals

Four Companies that are Surviving in a Post-Recession Economy By: Katherine Davis, BGS Communications Associate

These four reasonably new small businesses, run by BGS members, have seen growth and success despite the still-shaky global economy. The business owners share their thoughts on operating a small business, marketing its products or services and the importance of maximizing technology in today’s changing world.

Complementary Minds

ailing from three different parts of the world and having met while all pursuing their MBA degrees in Paris, Anna Nolting, Annie Winger and Nora Kato are now running Complementary Minds, a sophisticated and digital-savvy consulting agency for luxury brands. While still in college, they became friends as they pursued their degrees and focused on international luxury brand management, an industry that dominates the fashion-industry mecca where they were studying. Even before graduating, the three students recognized the need for a more modern group of individuals who could help fashion-focused companies like Balenciaga, Cartier, Dior, Gucci and Maison Martin Margiela shape their brands and increase their online presence for Generation Y. “We did a lot of project work for these sort of industries, and we realized all of them had the same questions,” Nolting said. “They would say, ‘We have an established, well-known luxury brand, but how can we keep the consistent brand identity we give customers offline to those in the online world for today’s digital consumer?’ There were a lot of questions about making themselves more international and capturing the new consumer without losing their exclusive brand image.” So in 2012, the three women established Complementary Minds, an international consulting company specializing in strategies that bridge offline and online brand touch points. “We worked so well together, and it happened so organically,” said Winger. “We had clients before we even started the company from an organizational standpoint.

That’s quite lucky, Complemen especially given the tary Minds global recession. Founders: Anna Nolting, Annie Winge Nora Kato To constantly be r& Inducted in different time into BGS: ESSEC Busines zones and countries s School, 20 11 Product or and still make this Strategic co nsulting and Service: man brand happen…it’s been agement Founded: Ap quite a whirlwind.” ril 2012 Just as the Full-Time Employees: 3 company’s name suggests, Clients: Luxury and Cons these three umer Lifest industries/c yle ompanies women describe HQ: Berlin, NYC and Pa themselves ris as having different, but “complementary” roles to play within the company. Nolting, based out of Berlin, deals with the strategic aspects of their projects, putting her consulting and research background to use. Winger, based in New York City, oversees the accounting and business development aspects of Complementary Minds. Kato, who works in Paris and has spent much of her time in Tokyo, has a background in communications and public relations as well as business, and she specializes in design, branding and working with clients to come up with creative concepts. “I think having a global perspective is a huge advantage Continued on Next Page

: advice s s e n i bus Small lan. ve a p s ha e Alway t you’r a h w Know y. nd wh a g n i do . e team h t e u l Va

(L to R): Annie Winger, Nora Kato and Anna Nolting, Co-founders of Complementary Minds bgs international exchange Spring 2013 www.betagammasigma.org 9

Complementary Minds (continued from page 9)

for us,” Winger said. “It’s one of our biggest assets because we’ve not only been to these major cities as well as lived and worked in them, but we know what those consumers want and how their current trends and habits impact the brands on a global scale. We can then take our knowledge of different international markets and help apply that to brands wanting to expand globally and locally.” The women admit, though, that starting a small business is rarely ever easy. Still, they agree that learning from experience is sometimes the best policy. “Like any company in its first year, we have to face all the challenges that are going to come up. It is trial-anderror sometimes because you don’t know any better yet. Sometimes, unexpected changes happen, and you have to learn how to adapt your strategies quickly,” said Kato. As a result of changes in the global economy and employment reality around the world, they believe those in the small business realm are actually being forced to be more creative and entrepreneurial. “What we see and realize when we look at our friends and networks is that people are becoming more independent,” Kato added. “They are seeing their own values more, what they can do and how they can do it for

“It is trial-and-error sometimes because you don’t know any better yet. Sometimes, unexpected changes happen, and you have to learn how to adapt your strategies quickly.” Nora Kato, Co-founder, Complementary Minds

themselves. The market is changing in that way. We also work with young fashion start-ups, and see our friends launching their own brands and online ventures.” Winger, who mentioned that she was still working in the accounting world when the financial crisis hit the United States, thinks that e-commerce is what’s really moving brands forward right now. “It’s really interesting to see how fast the digital market is moving,” Winger said. “It’s exciting to be able to help brands navigate the current landscape, both in the U.S. and on a global level.”

Born to Run

osh Heckathorn really loves to run. He is equally passionate about the online aspect of business. Heckathorn’s first venture, a small web-based company called Creditnet.com, reviewed various credit cards, kept track of the latest ones in the market and allowed customers to search for cards and apply for them online. After selling the company in 2012, he realized he wanted to continue his online work but also incorporate his love of the outdoors and running into his career. Last year, he joined Born to Run, the Washington-based minimalist running shoe store as president of BorntoRun. com. While the retail store had created a website and was even starting to sell shoes to people across the United States and the world, its online presence begged for some improvement. “Part of the reason why I invested in the business and came on as a partner is because I really saw the opportunity to expand Born to Run’s presence online,” Heckathorn said. “Apart from some barefoot bloggers and runners, there’s not really a company going out there and providing the best online resource for helping people to improve their running forms and transition from standard shoes to minimalist ones. It’s a difficult transition, even for seasoned runners, and many people need some guidance.” Named after the bestselling book by Christopher McDougall, Born to Run was in part founded by a character from the book, “Barefoot Ted.” He travels the world, helping people improve their running form before they change their footwear and teaching the values of a minimalistic lifestyle. Therefore, the store is as much of a retail venture as it is a philosophy of life for many runners.

“If you go to a traditional BornToRun.c running store, om President: Jo sh Heckathor they’re going n Inducted to stick you into BGS: Seattle Univer sity, 2009 in whatever Product or will ‘fix your Minimalist an d barefoot-i Service: foot nspired wear problem,’” said Fo un ded: Early Heckathorn. 2011 “If you have Full-Time Employees: 5 pain, they’ll put you Runners, w hether in a more Clients: athletic or those professional, who run enjoyment. cushioned Other athlet for es those who w alk long dist and shoe with ances. H Q : Se at gel, plastics tle, Washing ton and extra stuff. Our approach is that form should come first. When you get to one of our stores, we’ll partner you with a running coach, let you use a treadmill and go over your form. Then, we provide you with a minimalistic shoe that lets you run naturally while still protecting your feet from the types of surfaces we run on these days.” Heckathorn said Barefoot Ted travels around the world and because the book “Born to Run” is so popular, the store has big plans of expanding itself more and more internationally. Born to Run has plans of expanding itself to more locations across the United States as well as Canada and some Asian countries. Still, the current focus is boosting Continued on Page 12

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Born to Run (continued from page 10)

the website’s presence and importance to this growing community of minimalist runners. “Our huge goal this year is to launch the new site with lots of content, pushing it out across the web and growing its presence by the end of 2013,” said Heckathorn. “Right now, the employees at both the Bellevue and Seattle stores contribute online to our blog, write content and product descriptions and contribute to the site in other ways, too. We are also really active with social media, and we make sure we communicate often with our customers so that people are aware of what we’re doing. We really want to connect directly with our e: ic v ad s es n si u b ll a customers.” m S ly al He also discusses re gs Do a few thin the importance do to y tr well rather than of search engine . Change gs in too many th optimization (SEO) le do to for any company something peop or er si ea es liv that’s trying to reach r make thei t ea gr e av across the web and H e. more enjoyabl ng truly grow online ro st d web presence an awareness. . ia ed cial m command of so “We’re going to be focusing on our SEO much more going forward,”

he said. “We’ll be shifting to a better e-commerce platform soon, which will also allow us to have better control of the SEO. I’m a huge believer in investing in this Josh Heckathorn (L), President of for website BornToRun.com with Dan Fairbanks, CEO of Born to Run businesses.” Heckathorn said many companies are doing more with less people in the current economy and being creative in their approaches to marketing. “In this type of economy, when people are still nervous about spending money, you have to be more creative in marketing your business,” said Heckathorn. “You need to make sure your employees can wear lots of hats and help with the digital presence. I would say that today, no matter what you’re doing, you need to have a great site and a strong understanding of social media. Even if you’re selling baby clothes, market yourself on sites like Etsy. Because if you don’t, you won’t be able to compete anymore.”

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Twist of Lime

arreth Chandler and his business partner, Shane Hall, had worked on a project for a Melbournebased telecommunications company in 2004. With his partner’s background in web development and his background in market research, they were able to benefit the company. For some time, they continued their individual careers as Chandler completed his MBA at The Hong Kong University of Science and Technology. When he returned to Australia, he started a research business called Evolve. Working with his client, the Australia-based Coles Supermarkets, and pulling in Hall again, he developed a store experience survey for its fleet of more than 700 stores. After the project was finished, they decided to create a business that would combine research and web development. It would be called Twist of Lime. “Twist of Lime was born as an insights technology partner, creating technology for clients in the insights industry,” Chandler said. “We basically have two markets – corporate end buyers of research who use our dashboard and data collection technology and providers of research and insights services.” Chandler said that he and Hall knew there was an opening within the insights and market research industries for a company that would be extremely tech-savvy and present information in a new manner. “Things in the research industry hadn’t changed in a long time, especially in terms of how things are operated,” he said. “People are now realizing that, when you do market research, the world doesn’t wait while you go and collect data and analyze it. Market research is less about how you get the info, but more about when you can get it and what you do with it.” He also cites the expense associated with technological services and how Twist of Lime attempts to keep costs at a minimum for clients. “Developing technology to achieve cost-effectiveness and efficient distribution of insights can be really expensive. We have developed technology driven strategies so that our clients can do these things at a reasonable investment. This means we can stretch the research dollar much further.”

Twist of Lime

Founder: Garreth Chandler

Inducted The Hong Kong University of into BGS: Science and Technology, 2006 Product or Dashboards (technology that Service: reports on market research data, etc.), transcribing, online surveys and survey scripting, survey initiators and shapers, other technology Founded: 2010 Full-Time 5 Employees: Clients:

Companies and individuals in the insight and research industries

According to Chandler, much of Twist of Lime’s innovation has been driven by its customers. “They can be demanding or uncompromising, but these challenges have built the business,” he explained. “By working closely with them as well as understanding their frustrations and needs, we have been able to develop products and solutions that have broader market applicability.” Chandler and Hall have been able to position their company to be a competitive and cost-efficient option for many of their insights-based clients. “At times, we have designed and developed new capabilities for corporate clients, but have only charged them a fraction of the commercial development cost,” said Chandler. “In this way, they have gained capability at a feasible price, and we are following the market to develop products that we know the market needs. This has been a great model for us and for our clients.” Chandler said there were challenging times when they were starting Twist of Lime. At the beginning, the two business partners had to figure out how to best manage their budget and cash flow. This was especially true when Twist of Lime started attracting many more clients and demand increased. “Anyone considering starting a business needs to understand that unless you have a one-in-a-million idea, you really must pay yourself what the business can afford and not what you are worth,” he said. “If you have a good enough idea, are competent at what you do and execute well, then success may come. If you’re not prepared to drive a crappy car and face the risk of failure in the early years, you’re probably better off in a corporate environment.” Currently, Twist of Lime is seeing more and more success. Last year, the company received two Australian Research Industry Council Awards, one for technology and one for consumer insights. The company has continued to make profits each year, and it has recently launched WordyUP.com in partnership with the U.S. company, Infomous. They now have a strong “go-to-market” process with a list of various technology and products that they’ve lined up to launch over the next 12 to 18 months. Continued on Next Page

“Unless you have a one-in-a-million idea, you really must pay yourself what the business can afford and not what you are worth. If you have a good enough idea, are competent at what you do and execute well, then success may come.” Garreth Chandler, Co-founder, Twist of Lime

HQ: Melbourne, Australia

bgs international exchange Spring 2013 www.betagammasigma.org 13

Twist of Lime (continued from page 13)

Chandler describes the work that he and Hall pursue with Twist of Lime as different from a lot of research industry experiences, but sees it as offering research industry suppliers a pathway to an exciting future where otherwise big data and large corporate analytics has the potential to sideline them. “We’re really a mash-up between the ideas of two people from two different industries. It’s a quite new idea and very much customer-led,” added Chandler. “What we are about is discovering our clients’ needs and developing solutions for them. So, we’re really problem-solvers, and we then use technology to solve those problems. Our competitive advantage is having real depth of knowledge in two distinct industries.” He reminds those interested in pursuing a type of venture like this to stick with what they’re passionate about and remember that there will be many long hours of intense work. “If you look at it objectively, your chances of becoming the next Google are pretty remote,” said Chandler.

Painless Windows

cott Hewitt has plenty of experience as a manager of manufacturing companies. For many years, he was the President of SICK-Stegmann, Inc., a manufacturer of motion control sensors in Dayton, OH. In late 2009, SICK-Stegmann merged into SICK, Inc., based in Minneapolis. Hewitt went there for the first six months of 2010 to help the newly merged companies adjust some of their operations. However, he decided he wanted to return to Dayton and run his own manufacturing company. “I came back to Dayton and was looking around for different options, places I could buy or different business opportunities,” Hewitt said. “I saw a

: ess advice in s u b ll a Sm nd

a par tners Find good to work in employees ut ny. Find o a p m o c r you r trates you s u fr t a h w and you’ll audience, e tunities. B r o p p o d n fi at o rough it t d e r a p e pr the star t.

“Ultimately, it can’t just be about making a lot of money or gaining that type of success. There are lots of easier things we could be doing. You have to want to be independent, enjoy a challenge and love what you do.”

manufacturing company located in Dayton that had made replacement windows. I looked at the company, did business plans and projections as well as cost estimates. Then, I stepped back and thought, ‘I’ve got to do a reality check here. I know manufacturing, but I’ve never sold windows to consumers before.’” On a mission to learn more about selling windows, Hewitt found a man who owned a replacement window company based out of Columbus. He contacted him, told him he had a business plan and said he’d like some advice from another person in the industry that wouldn’t be competing with him in terms of location. “I wanted to know if I was on the right track,” said Hewitt.

“Social media might be very natural to younger generations, but it’s a little bit different to me. But the thing is, you can sit there and grouch about it, or you can embrace it.” Scott Hewitt, Owner, Painless Windows 14 bgs international exchange Spring 2013 www.betagammasigma.org

“He invited me up to Columbus, looked over my plans and basically told me there was no reason for me to make windows when I could buy them at about the same cost from another larger manufacturer. I had planned to set it up like other companies with commission-based salespeople, big showrooms and all of that. He said, ‘You don’t want to do what every business does. Here’s how you want to do it.’” Hewitt’s mentor advised him to use a business model led by referral, word of mouth and a website rather than relying on the expensive showrooms and salespeople, which lead to a lot of overhead. He licensed the business

Painless Windows

Owner: Scott Hewitt

Inducted Wright State University, 1993 into BGS: Product or Window replacements, doors, home Service: improvements Founded: June/July 2012 Full-Time 1 Employees: Clients:

Homeowners or real estate investors

HQ: Dayton, Ohio

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model and systems from the Columbus business owner and decided to run his company in a way that meant every customer would deal with the owner of the company and called his company Painless Windows. “Many times, when you’re buying something for your home, a salesperson will ask, ‘Will your husband or wife be there?’ This is because they don’t want you to say you can’t make a decision or have to wait until someone else is home,” explained Hewitt. “This often irritates people, and it should, because it’s wrong. We don’t do that. It doesn’t matter who’s there because it’s not selling. I’m letting people buy the way they want to buy. This whole philosophy makes a lot of sense.” He mentions that, today, with the easy availability of information via the web, many people who decide to purchase something could know just about as much about that product as a typical salesperson who comes to their home. So, Hewitt doesn’t waste too much time pushing information unless a customer asks for it. Instead, he lets the customer tell him what he or she wants. “You can Google search, ‘How much should it cost me?’ for windows these days, and I encourage people to do that and research what they want,” he explained. “If someone wants me to spend an hour telling them how windows work, I’ll gladly do that, too. It’s just not the standard method

•

go.miis.edu/mba

anymore. I try to give customers what they want. I don’t require down payments like a lot of companies do, and I can get them access to financing if they need it. I even offer lifetime warranties. That’s because, again, people don’t want to be sold things. They want to buy them and make decisions for themselves.” Hewitt realizes that, even though the housing crisis meant that a lot of people sought companies like his to fix up their houses instead of purchasing new ones, the home improvement industry is still a competitive one. “People can’t afford to spend a lot of money right now, so you have to offer competitive prices,” said Hewitt. “Many companies have a lot of additional expenses because they’re paying for fancy showrooms and warehouses. I don’t really have to do that. I find out what my customers want to do and provide that. It’s kind of where I’ve carved out an opportunity for myself in this economy. If you make yourself easy to deal with and give people a good value compared to the other business out there, you have a better shot at doing well.” Admittedly, Hewitt says he has had to learn a lot about marketing himself in the more technology-focused

Small b usines

advice: Learn about yourse Find a lf. mento r coach. or Get he lp, and get it e arly. D ocume everyth nt ing. St ar t talking about yourse and yo lf ur busi ness pl to othe ans r peop le.

world, learning about social media sites like Facebook, Twitter and YouTube and staying active with them. Now, he thinks it’s fun to keep up with these sites and his customers through them. “Social media might be very natural to younger generations, but it’s a little bit different to me,” Hewitt added. “But the thing is, you can sit there and grouch about it, or you can embrace it. I was a little bit resistant at first, but now, it’s become really fun to connect with people. You don’t have to get on a plane, get on the phone or meet up with someone. You can be in touch with many people at once that would be impossible to meet with if you had to do it all in-person. It’s all part of learning to be in the game.”

bgs international exchange Spring 2013 www.betagammasigma.org 15

Getting an Early Start One of BGS’s newest members, Matthew Turcotte, is the 20-year-old owner of the web development company North Shore Solutions. Studying at Clarkson University and already starting to invest in other industries, this young entrepreneur is on his way to business stardom. Beta Gamma Sigma: How did you come up with the idea for North Shore Solutions? What were the company’s beginnings? Matthew Turcotte: I started North Shore Solutions when I was 16 when I was in high school. I had always had an interest in technology. Eventually, I ended up working with the town of Clayton, N.Y., my hometown, and ended up creating a website for them. My business kind of grew from there, and I started working with some other businesses and organizations. Finally, I established my business as North Shore Solutions. When I was a senior in high school, I wrote a book called, “From Main Street to Mainstream”, and that grabbed the attention of Clarkson University. I eventually made a deal with the university president that they would provide funds for my tuition and give me office space if I led the all-new Young Entrepreneurs Program, and the university would be given a 10 percent stake in North Shore. BGS: What is it like to juggle running a successful web business, go to school and run the Young Entrepreneur Program at Clarkson? MT: It’s great that I’ve been able to grow the business, but I’m also a student, so I certainly have to juggle grades, school and work. Grades are extremely important to me, and I’ve always tried to work really hard at school. I am currently an entrepreneurship and innovation major, so I get to take

a lot of the stuff that I’m learning in the classes and truly apply it to my work the same day. It’s been a lot of fun, but obviously it’s a lot of work, and there are a lot of challenges. Just like anything else, there are valleys and peaks, but you keep moving forward. You have to keep moving on and finding other opportunities that excite you. Now, I’ve even gotten into real estate and have diversified a bit. I’m working on getting that up-and-going right now. I’ve just bought an office building as well as a storage unit business. BGS: So, why do you think you’ve been so successful with North Shore? What are some things that helped the company grow from its early days? MT: Well, my parents have always been extremely supportive of whatever I’ve wanted to pursue. I’ve really had so many mentors. I’m a firm believer that, with anyone you come into contact with, if you ask the right questions you can learn something from everybody. One of my mentors was a really successful entrepreneur from California who created the whole Fantastic Sam’s hair salon chain before he sold it years ago. He said he always thought he was going to settle down and enjoy retirement, but since then, he’s owned and managed many other businesses, owns a winery, released his own music album and much more. It’s been really neat to Continued on Page 18

Matthew Turcotte, Owner, North Shore Solutions 16 bgs international exchange Spring 2013 www.betagammasigma.org

A graduate A graduate A graduate program program program for top for top for top business business business Haub students. Haub students. has it. Haub has it. students. has it. Haub School of Business Haub School of Business Haub School of Business At Saint Joseph’s Haub School of Business, we ask our students to do more – to At Saint Joseph’s Haub School of Business, we ask our students to do more – to think broader, dig deeper and work harder. Beta Gamma Sigma (BGS) members are think broader, dig deeper andof work harder.we Beta Sigmato (BGS) members At Saint Joseph’s Haub School Business, askGamma our students do more – to are held to the same high standards. This is why the Haub School waives the GMAT/ held broader, to the same standards. Thisharder. is whyBeta the Haub School waives the GMAT/ are think dighigh deeper and work Gamma Sigma (BGS) members GRE requirement for honor society members interested in the school’s portfolio of GREto requirement for honor society members interested in the waives school’sthe portfolio held the same high standards. This is why the Haub School GMAT/of graduation programs. graduation programs. GRE requirement for honor society members interested in the school’s portfolio of Consistentlyprograms. ranked among the top in the nation by U.S.News and World Report and graduation Consistently ranked among the top in the nation by U.S.News and World Report and The Princeton Review, the Haub School offers BGS members a graduate degree with The Princeton Review, the Haub School offers BGSby members a graduate degree with Consistently ranked among the top in the nation U.S.News and World Report and national prestige that inspires its students to live greater. national prestige that the inspires itsSchool students to live greater. The Princeton Review, Haub offers BGS members a graduate degree with • Haub offers graduate programs in Business Intelligence, Financial Services, national prestige that inspires its students to live greater. • Haub offers graduate programs in Business Intelligence, Financial Services, Managing Human Capital, International Marketing, Professional MBA • HManaging Human Capital, International Marketing, Professional MBA aub offers graduate programs in Business Intelligence, Financial Services, programs and more. programs and more. Managing Human Capital, International Marketing, Professional MBA

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Haub School of Business | Saint Joseph’s University | 5600 City Avenue, Philadelphia, PA. 19131 Haub School of Business | Saint Joseph’s University | 5600 City Avenue, Philadelphia, PA. 19131

bgs international exchange Spring 2013 www.betagammasigma.org 17

“Once your heart is set on something, and that’s your goal, then you have to take action. Educate yourself before you get involved. Remember that you’re never too young–or too old, for that matter–to get started with something new.” Matthew Turcotte, Owner, North Shore Solutions Getting an Early Start (continued from page 16)

watch someone like that who’s in his mid-sixties and is still trying new projects and has a lot of drive. BGS: On that note, you are 20 years old. To many of your business partners, you may seem a bit young. What is this like from your perspective? Does your age ever come into play with business deals or clients? MT: It depends. There have been so many people who have been really supportive. Many people I work with want to see somebody young and who has ambitions make it. I think there’s that stigma out there that people from my generation are lazy or have feelings of entitlement. Sure, there are a lot of people out there like that, but that’s not everybody, and there are many of us who aren’t like that at all. Some will come across my path, look at me and my age, what I’m trying to do, and they may not be very trusting. That’s to be expected. But I just do what I’m able to do to the best of my ability and continue moving forward. I have to say, though, most people are actually supportive. BGS: When you started with North Shore, the economy was already in a rough state, especially for small businesses. How were you able to grow and succeed throughout this economic period, and what do you think is the current reality for small businesses as compared to a few years ago? MT: What I’ve seen is that technology has now become universally accepted and required in business. People now understand that they have to embrace technology. They have to be on the web, embrace social media and embrace all of the new technological advancements that are out there. It’s not so much that people are questioning this anymore. I was fortunate because I was already in this market, and at the time, there weren’t too many competitors around my area who were offering the type of services that my company provides. So, when people wanted these services, we were able to provide it with little competition at a time when they were realizing they needed to adopt it.

John Martinson, MBA ’75 Founder, Edison Ventures

BGS: Do you have any advice or unique business tactics that you would recommend to those trying to start their own small businesses right now? MT: I believe in the importance of work environment. I have always tried to surround myself with people that I respect and look up to. I tried to find people who I would like to eventually become. If there’s a type of business you want to start, spend time working with people in that business and spend time in that industry. If you want to open a restaurant, before you actually try to open one and create the business, you may want to go in and actually work at a restaurant. Then, you’ll know whether it’s something you truly want to do. Once your heart is set on something, and that’s your goal, then you have to take action. Educate yourself before you get involved. Remember that you’re never too young—or too old, for that matter—to get started with something new. If it’s something you really want, you can’t let mistakes keep you from continuing with it. You learn from those. Just prepare yourself, and get those initial mistakes out of the way upfront. Learn from them as quickly as you can.

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From Wall Street to Main Street The Potential Power of Crowdfunding for Small Businesses By: Seth Treptow, BGS Communications Director

ou’ve no doubt heard the old adage, “It takes money to make money.” It’s hard to argue with that logic. Ideas, no matter how good they might be, need funds behind them to find any kind of impact or gain any kind of traction in a competitive business world. So let’s say for a moment that you have a great idea for a business venture. You’ve thought your idea through, and you are certain it’s a winner. You just need some funds, let’s say $50,000 or so, to get yourself off the ground. How do you go about finding the money to make your dream a reality? If you have access to an angel investor or venture capitalist, you might be set already. Congratulations. Feel free to quit reading anytime. But assuming you are like most people, and wouldn’t know a venture capitalist from a hot dog vendor, your options are somewhat limited. You could ask your friends and family for money, or possibly take out a loan. And failing those options, there’s always the horse track or the lottery. Anyone know what Powerball is up to this week? Or, you could take your great business idea in a completely different direction. Meet the crowd. Welcome to crowdfunding. In a nutshell, crowdfunding is a mechanism that allows a project to receive funding directly from supporters via the Internet. “It’s a way to let multiple people invest in a company that is either backing it in exchange for a reward, or if you are an accredited investor, backing it in exchange for equity,” explained Eric Corl, president and cofounder of the crowdfunding platform Fundable.com. Crowdfunding platforms like Fundable provide the means for individuals to explain their project through a few paragraphs of text, and maybe a video clip or two, to potential supporters. Supporters can then choose to contribute funds to the project at a variety of levels.

Boiled down even further: If people like you and your idea, they will give you money. “The real core of crowdfunding, the key driving force, is based on affinity for a person or a cause or a desire for a product,” Corl said. “Friends and family will back founders just because they like them. Consumers might have a desire or affinity for the product and might want to really see it come to market.” The crowdfunding concept is not new in and of itself. The idea, in principle, has floated around the Internet for more than a decade. Early platforms that adapted the concept into action focused their efforts on funding artistic ventures and projects, such as movies, books and musical recordings. In recent years though, several platforms began tailoring the crowdfunding concept to suit the needs of small businesses and entrepreneurs. “I was watching a news show and they did a story about a football club in England. This gentleman was tired of billionaires owning all the sports teams,” recalled Sally Outlaw, co-founder and CEO of Peerbackers.com. “He started recruiting players and started the first webowned football club in England. Members of the community were going to give about 70 pounds a year and they would be owners in the club. He raised $400,000 in a matter of days. “I thought to myself, ‘Why aren’t they doing this for small business?’ A lot of us have friends and family and customers and neighbors who would support us in small increments but they may not have access to funds like the angels and venture capitalists. The light bulb went off that night. At the time, there was no crowdfunding industry. I didn’t even know crowdfunding was a term.” Outlaw sees crowdfunding as a very interesting way for companies to utilize technology, along with existing social Continued on Next Page

bgs international exchange Spring 2013 www.betagammasigma.org 19

Wall Street to Main Street (continued from page 19)

media to generate the funds needed to get up and running. “As a whole, it costs a lot less these days to launch a company in its early stages,” she said. “We focus on that early stage capital, what we call napkin money. There was a time that you could write an idea down on a napkin and pitch it to an investor and they would go for it. That’s the part that is missing in the business world right now. It’s difficult to come up with those funds. “We give people the opportunity to come in and put their napkin out there. We provide an opportunity for their own friends and family – their crowd – to support their project. Plus, there is a cross-pollination that can occur. If you come to Peerbackers and you have a cool project, it’ll be seen by other people. Someone may come to support one project, see yours, and then decide to support you too.”

Money for Something Let’s face it. This is the business world, not a Dire Straits song. Few, if any, people will give you “Money for Nothing.” Crowdfunding supporters are much the same. They expect something in return for their financial support of the project. “When you have a startup you are very excited about it,” explained Dan Blacharski, founder of Ugly Dog Media, a media and marketing company that offers crowdfunding consulting services. “A lot of innovators will make the

mistake in assuming that everyone else is equally excited and that they’ll want to jump on board just because they’re excited by it. That isn’t the case. You have to give them a reason to want to buy in.“ Owning a stake in your company would be quite the carrot, but under existing rules and regulations, that’s a major no-no. While those rules have begun to change (more on that later), most crowdfunding campaigns are left with only one option: giving tangible incentives or “perks.” Perks can come in a variety of sizes and shapes and are typically proportional with the amount of money an individual contributes to the campaign. In other words, the more you give, the more you get. A crowdfunding campaign might, for example, give you a t-shirt for $25, a sweatshirt for $50, and so on down the line until the project is fully funded or your closet is full. Whichever comes first. The key though, as Blacharski explained, is to make sure your perks are something that a potential crowdfunder will see value in. “You have to give them something, beyond just your excitement, to get them excited about it too,” he said. “A lot of the campaigns you look at, you’ll see incentives like ‘our undying gratitude,’ or ‘We’ll put your name on our website.’ Maybe they’ll send you a sticker. Give us $50 and we’ll send you a coffee mug. No one really cares about those things.” One perk option that works quite well for many business ventures is to pre-sell the products and services that the company is planning to bring to market. Corl sees many companies going this route with their campaigns on

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business.udmercy.edu We want great things for you. 20 bgs international exchange Spring 2013 www.betagammasigma.org

“The beauty is that before you go and spend $50,000 of your life’s savings for the first run of a product, you can go out to the market and see if there is actually demand and interest. Even a failure can save you potentially years of your life.”

Fundable.com. He sees several advantages to this avenue of incentives. “The beauty is that before you go and spend $50,000 of your life’s savings for the first run of a product, you can go out to the market and see if there is actually demand and interest,” said Corl. “Even a failure can save you potentially years of your life. It’s a great market validation tool and great way to build social proof and marketing behind your product. You can generate demand and publicity for your product and service for your startup and raise that initial capital to launch or grow your company.” Once a company sets up their project’s profile and establishes its campaign target and incentives, they can open the door to the crowd. Friends and family, along with anyone on the World Wide Web, can at this point start funneling funds your way. But they better act fast, as this is a limited-time offer. Campaigns typically are conducted within a timeline specified by the project’s creator and are not allowed to continue ad infinitum. As Outlaw explained, the time limits are put in place to benefit both the entrepreneur and his or her supporters.

Eric Corl, President and Co-founder, Fundable.com

“As the project owner, you don’t want to devote six months to something. You are going to burn out. You also want people to know that there is a sense of urgency,” she said. “My business partner comes from a sales background, and he knows that you have to give a deadline or people won’t be motivated to stop what they are doing to support you. From a backer’s perspective, it’s the same thing. You don’t want to see someone on Facebook for six months begging people to donate to their project. “There is a sort of burnout that comes with the process. You want to keep things fresh and exciting. We recommend 45 days as the optimum time period.” But what happens if a startup fails to raise its targeted funds before the deadline is met? Do they have to give the money back? Do they get to keep it? Do I still get my t-shirt? Continued on Next Page

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Wall Street to Main Street (continued from page 21)

The answer…it depends. The final destination for the funds will largely depend upon which crowdfunding platform the campaign was conducted. Some sites only give a project the raised funds if it meets or exceeds the campaign’s stated capital goals. If it fails, the money is returned to the supporters. “The theory behind fixed funding is that if you don’t reach your goal you can’t necessarily pull off what you said you were going to do,” Outlaw said. “If you need an oven for your bakery, and it’s $10,000 and you only raise $5,000, some sites aren’t going to give you that money. You can’t buy half an oven.“ Other sites though, like Peerbackers, have adopted a more flexible approach to goal targets. “Our policy is that if you can supply the rewards that you offered in exchange for that funding, we will release the money to you,” explained Outlaw. “You don’t have to reach your full goal. With those funds, you can get your first inventory or website up. You can get your business going and test your market. Then, once you have traction, you have the means to get the larger amounts of money that you might need to grow even more.” While the sites vary on their willingness to forward

22 bgs international exchange Spring 2013 www.betagammasigma.org

funds to campaigns that miss their targets, platforms are universally open to campaigns exceeding their goals.

A More Equitable Playing Field Let’s say your business idea doesn’t lend itself to the incentive-based model of crowdfunding. Maybe you won’t be producing a tangible product that would serve as an enticing perk. Maybe you need to raise much more capital than can be feasibly accomplished by exchanging rewards for contributions. What then? You could offer shares in your company, but that’s easier said than done, particularly from a legal standpoint. “If you write your Uncle Jim an I.O.U. for 20 percent of the business, you are most likely committing securities fraud,” explained Alon Hillel-Tuch, co-founder and CFO of the crowdfunding platform Rockethub.com. “There are a lot of things being done in the small business space that isn’t kosher or not actually permitted. There are very stringent regulations out there about how businesses are allowed to raise capital. There are a lot of issues that are arising out of that.” Under the Securities Act of 1933, companies in the U.S. may only sell shares to individuals classified as accredited investors – those with a net worth in excess of $1 million or with an annual income greater than $200,000. That is about to change. In April 2012, a piece of legislation called the Jumpstart Our Business Startups (JOBS) Act was signed into law. The act, designed to encourage the growth of small businesses, loosens many of the previous regulations that limited the means by which startups could raise capital. Most notable to the crowdfunding discussion, the JOBS Act allows non-accredited investors to get in on the ground floor of a startup. As a result, the door has been opened for another model of crowdfunding – one that offers company equity in exchange for investments – that many in the field are very excited about. “It’s the accredited investor space that has really taken control of that market,” explained Hillel-Tuch, who testified before the U.S. Congress as part of the discussions prior to the JOBS Act’s passage. “They have been critiquing, judging, curating and filtering the investment opportunities, often at the disregard for unaccredited investors who should have the opportunity and right to participate. We see the JOBS Act as democratizing the access to capital.” Blacharski also sees the potential impact that the JOBS Act may have on equity crowdfunding. “The idea of equity-based fundraising brings Wall Street to Main Street,” said Blacharski. “It gives some of that equity based funding, that was previously out of the hands of small business, to small companies looking for funds to start up and raise money.”

He said this development could usher in a whole new wave of innovation. Under the JOBS Act: • Crowdfunding campaigns will have a cap of $1 million. • Startups will not be allowed to sell equity through their own websites. As such, any equity crowdfunds will have to be conducted via a registered portal.

Continued on Next Page

• Individuals who make $40,000 or less per year will only be allowed to invest up to $2,000 annually. • People making $40,000 to $100,000 will have their investments capped at 5 percent of their annual income. • Those making more than $100,000 annually will be allowed to invest up to 10 percent of their income each year. Another aspect of the JOBS Act that will open things up for startups is a removal of the ban on general solicitation. Fundable.com’s Eric Corl see’s this as a huge advantage for startups. “Currently, if you are an entrepreneur and you need funding, you cannot go out and post that on Facebook or Twitter offering interest in your company in exchange for equity,” he explained. “That ban will be gone. With that, entrepreneurs will be able to publicly discuss how they are raising money for their business with equity.” But those are just the broad strokes. At the time of the JOBS Act’s passage, the Securities and Exchange Commission was given 270 days to iron out the finer details for the legislation. At the time of this article’s writing – 355 days since the legislation’s passage – those rules had not yet been put into place. As such, crowdfunding platforms, startups and investors are stuck in a holding pattern. “They are big changes,” said Corl. “The laws being implemented are going to have a huge impact on the economy, so it’s probably prudent for the SEC to take its time,” he said. “It may be six months, a year or longer. But once they go through, it will have a profound impact on how startups get started and raise their money.” One portal that has set its focus on the equity side of crowdfunding is Wefunder.com. The site focuses strictly on the equity side of crowdfunding, and is currently offering a limited amount of private investment opportunities to accredited investors. While both equity and perk-based crowdfunding stem from the same idea, Wefunder founder and president Michael Norman see them as being totally different. “On a perks-based site, you are pre-buying a product or you are donating to a project,” he said. “The relationship you have to that thing is very different from being able to say, ‘I’m an equity investor. I have a stock certificate with my name on it.’ That’s really exciting. There’s an entrepreneur out there that is working on something, and now I can go along for the ride as an investor.” Beyond their financial investment, Norman also believes investors will provide startups with support in other valuable ways. “At the end of the day, you will have hundreds of people who are really invested in the success of the company – all

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bgs international exchange Spring 2013 www.betagammasigma.org 23

Wall Street to Main Street (continued from page 23)

“On a perks-based site, you are pre-buying a product or you are donating to a project. The relationship you have to that thing is very different from being able to say, ‘I’m an equity investor. I have a stock certificate with my name on it.’ That’s really exciting.”

of whom have different connections and networks and different ways of helping,” he said. “When you think about the network of individuals that can connect you to a potential customer, or can put the word out to find you a potential employee, you have expanded by orders of magnitude by having all these investors. If companies treat their investors well, these individuals will go above and beyond to evangelize and advocate for your company and its products.” Of course, not everything about the equity model of crowdfunding is peaches and roses. Under the JOBS Act, companies will be required to file tax and financial information with the SEC, and companies with more than $500,000 in investments will also be subjected to an annual audit. In addition, companies will be required to provide regular updates to investors. Then there is the matter of investor education. For many non-accredited investors, this is entirely new territory. “People are going to have to learn how to do this,” explained Norman. “We’re not shying away from the fact that investing in a startup is a high-risk investment. You can’t think of investing in a startup like investing in the stock market. You should go into it, to a certain extent, expecting to lose your money. You might not. You might, in fact, make

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Michael Norman, Founder and President, WeFunder.com

a lot of money.” Beyond the risk, Norman points out that even in the case of successful startups, investors should not expect to get rich quick. “You shouldn’t expect to see any cash for five to seven years. These are highly liquid investments.” So given the high risk and slow turnaround, the question must be asked. Why in the world would an investor give me money for my business? Norman chalks it up to excitement. “People should be investing in startups because they are excited about what the company is doing,” he said. “They should see the entrepreneur and be like, ‘Wow. I get what they are doing. I understand how this could be a big business, and I want to be part of this experience.’” Along those same lines, Hillel-Tuch sees a personal connection with a company’s product as being a big motivator for investors. “If your local coffee shop is raising funds to open a second location across town, it might get people interested in investing because they really like Joe’s coffee,” said Hillel-Tuch. “They are less concerned about the evaluation of the company, the stake they are getting or the return on investment. They consider it, but it is a less important factor. Their main driver is helping Joe expand. “The motivations are very different than the typical investor. The typical investor might look for very different deal terms to maximize their return. Because their experience with your business is different than the typical investor, we will likely see some interesting and different deal terms out there that the traditional investor probably would not accept.”

Tapping into the Crowd

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24 bgs international exchange Spring 2013 www.betagammasigma.org

No matter how good your business idea may be or how compelling your story is, no crowdfunding campaign – equity- or perk-based – will ever succeed if it is missing one critical component: the crowd. “Kickstarter is not the crowd. Kickstarter is just the platform,” explained Blacharski. “You have to bring your own crowd. The first thing you need to do is find out who that crowd is and where they are. It’s not always obvious. A crowd is not just a crowd. It’s specific. It’s not just a bunch of random people.” Blacharski is not alone in his assessment.

“We’ve seen it on our platform and others. Projects that can tap into an already prepared crowd, or base of customers, are much more likely to get funding support,” explained Outlaw. “That doesn’t mean you can’t be successful if you don’t have a crowd, but you have to start three to four months in advance to build a Twitter and Facebook following. You have to build relationships and let people know that you are going to launch this project.” According to Outlaw, crowdfunding is not a “post-it and forget it proposition.” “You can’t just put it on there and expect people to flock to it,” she said. “That rarely happens unless you are lucky to get picked up by CNN. You really need to constantly promote and realize that it is a full-time job. People will give five to seven hours a day to their campaign to be successful.” Another factor that can impact a campaign’s success is, interestingly, its success. As Hillel-Tuch explained, it’s human nature to support projects that already have support. “It goes back to the high school dance. No one wants to be the first person on the dance floor,” he said. “You have to find people who believe in you and are willing to join in. It’s only once you have people involved from your own network that your project will gain traction and others will join in. “Some people will launch a project and expect magical money to appear from nowhere. While we do have a lot of users who visit our site looking to fund projects that they may not know personally, they do want to see projects with activity on them.” Individual investors aren’t the only ones who are more likely to support projects that have demonstrated success and traction. “We find that a lot of venture capitalists and angels have been looking at our platform and projects and have been making their own investments based upon how they see projects perform,” said Hillel-Tuch. “We have seen several groups that, after finishing their campaign on Rockethub, have been approached by venture groups seeking to give them additional capital.” Corl also sees crowdfunding as a great tool for companies with eyes on one day seeking venture investment. In his opinion, crowdfunding makes the landscape much more efficient. “All the players are still going to be in the game. It’s just going to be a faster game,” he explained. “You’re not going to have the same types of seed-stage investments being made by professional capitalists. They can now put their money in companies that have already showcased traction – that have gotten out there and demonstrated social proof and market demand. “As an investor, I can look at a company and see that they have already generated $50,000 for their startup. My investment is more likely to have some kind of payoff or effect with this company growing than someone investing in just a napkin idea that hasn’t been tested in the market.” In the end though, it all comes back to the idea. The crowd is nothing without a strong, relatable and digestible idea to support. Combine that with some hard work and the right amount of social leverage, and small businesses and entrepreneurs have a very valuable new tool at their disposal. Need money to make money? Maybe it’s time to join the crowd.

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A Growing Global Community of the “Best in Business” Beta Gamma Sigma regularly highlights our alumni chapters for the excellent programs they put together throughout the year. BGS now has 28 officially chartered chapters, with the London Alumni Chapter being our newest addition (congrats!). A chartered chapter goes through a specific process with the Central Office: it must meet certain requirements, have a set number of member supporters, and be approved by the Beta Gamma Sigma Board of Governors. But many members may not realize that, charters aside, there are other BGS groups popping up all over the globe that are on their way to becoming chapters. So if you don’t see your city listed in the official BGS chapter list, you might want to keep reading. The BGS alumni network is constantly expanding, and this is fueled directly by our members. Almost

monthly, members reach out to the Central Office staff about their interest in investigating a way for BGS members to meet each other in their city. The Central Office staff works closely with these individuals to determine the level of interest in their area and, if the case is right, to help get an informal network off the ground. For example, one BGS member took charge in Toronto and coordinated a social mixer this past fall, which was attended by almost 30 members! The group really enjoyed their time and is already planning on when they can get together this spring. On the other side of North America, a dynamic set of BGS members in Mexico City got together to celebrate the BGS Centennial and enjoy their camaraderie. At a restaurant in Sydney, Australia, you might walk in to find a few tables reserved for BGS members on a

Alumni Chapter Activities Atlanta Area Alumni Chapter April 23, 2013: Speaker Event, “Technology in Atlanta” May 21, 2013: Speaker Event, Steven Olson, Ph.D., Director of Center for Ethics and Corporate Responsibility, J. Mack Robinson College of Business Boston Area Alumni Chapter April 2, 2013: Scholarship Dinner and Speaker Event, “Keys to Building Your Successful Marketing Career” Charlotte Area Alumni Chapter January 16, 2013: Networking, Rock Bottom Brewery February 19, 2013: Meet the Leaders Centennial Webcast Event Chicagoland Alumni Chapter January 29, 2013: Speaker Panel Event, “Secrets to Successful Management”

Dallas-Fort Worth Area Alumni Chapter February 21, 2013: Networking Event, Centennial celebration at Kung Fu Saloon Denver Area Alumni Chapter March 5, 2013: JP Morgan Commodities Centre tour April 19, 2013: Social Event, Colorado Avalanche Hockey Hong Kong Alumni Chapter February 28, 2013: Social Event, Centennial Celebration April 11, 2013: Annual General Meeting and Dinner Houston Area Alumni Chapter February 19, 2013: Meet the Leaders Centennial Webcast Event London Alumni Chapter January 31, 2013: Social and Networking Event March 5, 2013: Speaker Panel and Networking Event, “The Value of Networks”

26 bgs international exchange Spring 2013 www.betagammasigma.org

particular night. A group of BGS members get together for a “Meet-and-Greet” once every few months. Members enjoy chatting with each other so much that they often stay much past the official close of the event. Things are a-brewing in Austin, Texas, as well, with members meeting together regularly to brainstorm and plan events to lay the groundwork for a future BGS chapter in their area. The Austin network has employed social media, email, and even surveys to grab the attention of local members and let them know that BGS is active in their area. We highlight these networks because members need to know two important things. Beta Gamma Sigma involvement isn’t limited to our 28 alumni chapters. If you want to engage with members in your area, all you have to do is email the Central Office and we’ll see how we can link you together. The membership directory and BGS LinkedIn group are also great venues for connecting with members online. The second thing to note is that if you are serious about wanting to invest in your own development and invest in other BGS members in the process, think about initiating leadership in your area. Reach out to the Central Office and let them know that you would be willing to explore how BGS can become an active part of your community.

Los Angeles Area Alumni Chapter March 31, 2013: Social Event, Beauty and the Beast at the Pantages April 6, 2013: Social and Networking Event, Hockey Night with LA Kings Philadelphia Area Alumni Chapter February 27, 2013: Networking Event, Fado Irish Pub Raleigh-Durham Area Alumni Chapter March 7, 2013: Lunch-andLearn with Guest Speaker, Chris Cimino, Founder and CEO of SalesPro Connect

San Francisco Area Alumni Chapter January 30 & 31, 2013: Networking Events, San Jose and San Francisco February 27, 2013: Networking Event, San Francisco Seattle Area Alumni Chapter February 27, 2013: Networking Event, BJ’s Brewhouse in Tacoma March 14, 2013: Speaker Event, “How to Become the CFO” St. Louis Area Alumni Chapter February 19, 2013: Meet the Leaders Centennial Webcast Event Switzerland Alumni Chapter

San Diego Area Alumni Chapter

January 10, 2013: Dinner Speaker Event, Dr. Hans Ruh of the University of Zurich

March 19, 2013: Networking Event, University of San Diego campus

Washington D.C. Area Alumni Chapter March 7, 2013: Networking Event, James Hoban’s Irish Restaurant March 20, 2013: Speaker Panel Event, “How to Break into the Consulting Industry”

BGS is Everywhere Photo Submissions 3)

6) 5)

Submit your own photos featuring Professor Elwell at: betagammasigma.org/ centennial While you’re online, you can also: • Become a fan of the Professor on Facebook: facebook.com/ProfessorElwell • Follow the Professor on Twitter: @ProfessorElwell

1) Professor Elwell attends a BGS induction ceremony at The University of Hong Kong, posing with some of the chapter’s newest members 2) Member Vivek Pandey takes Elwell to the Gateway of India 3) Keeping track of the new BGS members at Towson University in Maryland 4) Elwell heads to the west coast and makes his way to Union Square in San Francisco 5) Surrounded by BGS members and recent graduates at Savannah State University in Georgia 6) Elwell visits Dubai and a group of BGS members, posing for a picture near Burj Khalifa - the tallest building in the world

bgs international exchange Spring 2013 www.betagammasigma.org 27

Gifts from Friends Beta Gamma Sigma gratefully acknowledges the support of the following individuals, as well as the organizations listed on page one. Without this assistance, the Society would be unable to continue adding value to the lifetime membership. Governors’ Council $5,000-$9,999 Ohio Northern University James F. Fenton, Jr. University of Portland Robert B. Pamplin, Jr. Chairman’s Board $2,000-$4,999 University at Buffalo, State University of New York Paul F. Eckel Business Achievement Award Joseph W. Moeller Fordham University Mario J. Gabelli The University of North Carolina at Greensboro James K. Weeks Texas State University-San Marcos Jerry D. Fields Director’s Table $1,000-$1,999 University of Arkansas John M. Norwood Baruch College-The City University of New York Austin W. Marxe William E. Oakley University of California, Irvine David H. Blake California State University, East Bay Atul Dhablania Case Western Reserve University Franklin T. Kudo CENTRUM Catolica in Lima Fernando A. D’Alessio Claremont Graduate University John W. Bachmann University of Denver Christine M. Riordan Drake University John Pappajohn University of Iowa William C. Hunter James Madison University Robert D. Reid Loyola Marymount University John T. Wholihan Loyola University Chicago Virginia S. Willcox Miami University Frederic J. Holzberger The University of Michigan Linda I. Voss North Carolina A&T State University Bernard J. Milano Northwestern University Ernest C. Styberg University of Oklahoma Kenneth R. Evans University of Pittsburgh Donald R. Beall University of Rhode Island James A. Viehland Saint Joseph’s University James J. Maguire University of South Carolina James M. Mancini Stephen F. Austin State University Brian K. McAlpine University of Tennessee at Knoxville Barbara S. Haskew University of Tulsa Burt B. Holmes Valdosta State University Kenneth L. Stanley Villanova University Debra A. Arvanites President’s Cabinet $500-$999 University of Alabama Marinda J.C. Wood University of Arkansas Ken Shollmier California State University, Chico Henry W. Wright California State University, San Bernardino Anh M. Nhieu Clemson University Cheri M. Phyfer Columbia University Paul M. Montrone

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New York University Richard A. Leibner New York UniversityGraduate School Anonymous North Carolina A&T State University Quiester Craig Kristy L. Howard University of North Texas Gary M. Shultz Northern Arizona University Douglas P. Busch Northern Illinois University Denise D. Schoenbachler Northwestern University Laura M. Cox Charles R. Enever University of Notre Dame Katherine R. Crow Oakland University Patricia J. O’Donnell The Ohio State University Norman S. Crystal The University of Oklahoma Homer H. Hulme Oregon State University Joan Austin Ken Austin University of Pennsylvania Robert C. Nevin Hugh J. Zimmer University of Pittsburgh Wilbert H. Schwotzer University of Rochester Ramachandra Bhagavatula San Francisco State University Kathleen L. McIlwain Wesley R. Petit San Jose State University Constance B. Moore Shippensburg University Marie R. McDonald University of Southern California Doreen L. Gee Kenneth J. Kay St. John Fisher College Victor Salerno St. John’s University Iris Altilio Nicholas J. Prokos Anne R. Wennington St. Mary’s University Cynthia H. Munch Stephen F. Austin State University Gerald W. Schlief Syracuse University Walter W. Hemming Temple University Stephen H. Morris The University of Texas at Austin Edgar W. Ray, Jr. Texas State University-San Marcos C. Patrick Oles, Jr. Tulane University Lance B. Young University of Washington Philip B. Hartley University of WisconsinMadison Thomas G. Ragatz Anton T. Vanek Virginia Polytechnic Institute and State University James E. Pearman, Jr. Washington University Howard E. Lovely John P. Wareham Century Club $100-$249 The University of Akron Michael J. Berthelot University of Alabama Thomas W. Armstrong Herbert A. Barr Sid Davis John G. Foshee Martha M. Houston Margaret E. Hudson George W. Jeter Lance A. Nail Susan D. Rheney James P. Tate University of Alabama at Birmingham Jeffrey I. Stone University at Albany, State University of New York Edward J. Wehle

The University of Arizona Hope B. Levin Bruce C. McAlister Hugh Rose Arizona State University John D. Farrell William J. Nasif William K. Rapp University of Arkansas James L. Ashmore Gus Blass O. L. Bodenhamer Richard M. Bushkuhl Gene Cogbill Mike R. Conn Walter P. Henry John W. Ingraham Greg W. Lee David R. Malone Ward N. Marianos Donald F. McNiel Julia P. Mobley Harry Shipley Bryan A. Speed University of Arkansas at Little Rock Susan G. Rogers Aston University Adrian Cadbury Auburn University Cris V. Branden Will H. Tankersley Augusta State University Paul S. Simon Ball State University Kara Y.H. Lenox Baruch College-The City University of New York Jon S. Adler Hal H. Beretz Swee L. Chia Martin P. Davis Lee A. Feldman Harry A. Hamill William J. McCarron Edwin B. Morris Dr. and Mrs. Samuel G. Ryan, Jr. Jerome A. Seidman Saul H. Wadowski Joseph D. Weisberg George T. Wendler Philip Wolitzer Shing W. Wong Baylor University Robert A. Fitz Gerald W. Haddock William B. Hollis Tyann R. Osborn Bentley University David P. Demarco Robert P. Hodgkins Matthew R. Wizeman Beta Chapter Herndon Foundation Beta Gamma Sigma Staff Timothy J. Weatherby Boise State University Sharon E. Nielsen Pieter M. Ytsma Boston College Philip A. Bertolo Thomas F. Faherty Michael G. Faucher Mary Ann E. Hart James R. Kearnan Gary R. Siegel Richard E. Valliere Boston University Arthur C. Anton Harvey A. Creem Robert C. Gorin Robert F. Himmelman Gregory E. Hudson Gitta M. Kurlat Emanuel R. Pansa Alan J. Rosenblum Richard A. Scheid Bowling Green State University Richard L. Foran Michael W. Hoffman Gloria A. Lefevre Henry J. Merce, Jr. Ronda K. Stinemyer Bruce C. Webster University of Bridgeport Michael S. Jelormine University at Buffalo, State University of New York Jeong Hoon Choi Robert D. Glidden, Jr. Calvin J. Haller Richard A. Shick

GENEROUS DONORS SUPPORTING BETA GAMMA SIGMA March 16, 2012 through March 15, 2013 University of California at Berkeley Leonard A. Aplet Melvin L. Bacharach James A. Craft James F. Duggan Jennifer L. Eccles Leland E. Leisz Gert Vonderlinde University of California, Davis Mark A. Nelson University of California, Irvine Walter A. Meares Lyman W. Porter University of California, Los Angeles J. K. Clancy Derrick K. Doi Irwin S. Field Al A. Finci Bernard D. Fischer Irwin D. Goldring Sarah C. Harlan Gerald Lippey Ross E. Roeder Arnold Rudin California State University, Bakersfield Donna J. Goins California State University, Chico William A. Spooner California State University, Fresno L. Gino Favagrossa Susan L. Schweda California State University, Fullerton David M. Lawrence Cecile L. McKee California State University, Long Beach Smita Y. Katbamna Rosa N. McDonald Beate M. Morrow Susan V. Parsons Robert L. Pitts Susan L. Volmer Russell E. Walker California State University, Los Angeles Beverly A. Hood Michael F. Luongo Paul F. Maurin Gerald A. Minter Suzette D. Nelson Ronald M. Taketa California State University, Northridge Christopher J. Curry William R. Hollinger Krisann S. Thompson California State University, Sacramento Margo Murray California State University, San Bernardino Kimberly J. Hales Canisius College Reginald B. Newman Nicholas F. Urbanski Jeffrey G. Wagner Case Western Reserve University Mark Engle Howard A. Glassroth Henry Ott-Hansen Susan B. Waters College of Charleston Anita Zucker University of Chicago John T. Baily Thomas G. Baker Thomas W. Davis Kuno A. Wyler University of Cincinnati Raymond P. Neveu The Citadel John D. Murdock Clayton State University Victoria L. Williams Clemson University Ronnie L. Jowers Marvin J. Pinson, Jr. Cleveland State University Theodore A. Laufik Linda H. Rogalski Richard P. Vento Craig White University of Colorado at Boulder Makoto Fletcher Robert S. Graham Katherine L.M. Hart Jeffrey D. Lovell Edward C. Mitchell Megan A. Young

University of Colorado at Colorado Springs Eileen S. Burnley Monica E. Tucker Colorado State University Kathy J. Mehlmann Richard L. Robinson Steven J. Vander Wal Columbia University Richard M. Cryan Robert Davidow Rajan Dev John E. Meyer Paul P. Morimanno Diana M. Sattelberger University of Connecticut Robert C. Burrill Lindley M. Franklin Neal B. Freuden Michael Friedman John R. Harvey David J. Landers Edward J. Majkowski Gregory K. Phelps George G. Roller Creighton University Bryan K. Brown Adam Langdon University of Delaware Larry D. Fitzwater DePaul University Ellen Miller Arthur Perrone University of Denver Lowell A. Hare Sylvester Houston Marcia C. Newhart Thomas A. Przelomiec University of Detroit Mercy Kathleen D. Aznavorian Mark R. Carver Jaime F. Encinas Jacob Rehmann Patricia A. Tourney Drake University Erika C. Curtis Frederick N. Peters Daniel B. Peterson Daniel E. Prall Steven J. Roy Paul B. Wieand Duquesne University Kevin P. Prykull William H. White James M. Zillian East Carolina University August F. Malson William H. Powell Ray G. Stephens Eastern Illinois University Rodney A. Bull Eastern Michigan University Lisa J. McGrath Richard H. Moran Eastern Washington University Clifford D. Davis Emory University William S. Connolly James E. Herring Bryant K. Isaacs Solon P. Patterson John Redding Homer E. Smith Robert D. Stimpson Florida Atlantic University Carlene R. Walker University of Florida John C. Appel Robert C. Norris John J. Slaboch Walter J. Smith Florida State University Mark R. Arrigo Lowrie W. Brown Kee Juen Eng John A. Lemine Calvin N. Willis Fordham University Joseph T. Casey Michael A. Fortini Francis J. Heffron Diane Turner Fort Lewis College Doris Becenti Francis Marion University Frank H. Avent George Mason University Carol Shapiro George Washington University Edward F. Dube George O. Foster M. Colleen T. Jones Mary M. Lewis Philip D. Reiff Georgia Southern University Ralph M. Andrews Mary F. Hazeldine Martin W. Nesmith

Georgia State University William D. Barker Jay A. Bernath Dale N. Davis Jack J. Edwards John D. Ernst Walter R. Henderson Larry F. Miller Rita C. Scoggins David Zell University of Hawaii at Manoa Laura K. Rand Barry Taniguchi Hofstra University Janet R. Cordano Charles J. Mulhern Ann E. Sutton University of Houston Emma S. Baez Gary S. Brush Ramon Fernandez Anne T. Parrish Virginia K. Simons Christopher D. Wheat University of HoustonClear Lake John M. Kovach University of Illinois Clifford R. Buys Michael E. Fox Thomas W. Hough Herbert J. Rowe Thomas B. Sleeman John D. Stein Henry D. Strunk John M. Tucker University of Illinois at Chicago Mary S. Blust Indiana University Theophilus B.A. Addo Frances H. Applegate John K. Austgen William K. Bissey Mary E. Bonhomme Terri L. Clark Donald C. Danielson Clarence H Doninger Jean Drevenstedt Thomas L. Dusthimer William D. Fischer Ray H. Garrison John D. Grant David E. Greene E. Jan Hartmann Howard Kahlenbeck, Jr. Anne M. Kempf James M. Krueger Edwin P. Lecroy, Jr. Blair W. MacDermid Harley R. Mohr Gail E. Mullin Robert G. Nettles David B. Pearson Michael Pierce Franklyn L. Prickett Malika Richards George W. Rohe Allen E. Rosenberg Patricia R. Theil John V. Thomas Thomas F. Veldman Indiana University Northwest Paul R. Fotia Iona College Devlin L. Lansburg University of Iowa Jeffrey B. Warner Victor W. Wilson James Madison University Lacey E. Viar John Carroll University Kerry L. Kipfstuhl University of Kansas Janet L. Buttery Kansas State University Robert C. Salem, Jr. Kent State University Kenneth Haber Dallas P. Lutz Dale T. Morsefield Aspy P. Palia Clifford D. Shields University of Kentucky Michael Meade John C. Talbott, Jr. La Salle University Susan C. Borkowski Robert A. Fabiszewski Michele J. Gray Todd J. Warner Lehigh University Joan B. Cole Sandra Goldfarb Murray H. Goodman Eugene E. Morath Philip R. Peller Kenneth Schur Louisiana State University Terry A. Brown Ferrell A. Brunet Virginia J. Kahnt James E. Taussig Jerry E. Trapnell Louisiana Tech University Bruce W. Berry Gregory W. Ulferts

University of Louisiana at Monroe Saul A. Mintz Freddy Nolan Loyola Marymount University John P. Lambert Gregory J. Martin Loyola University Chicago Joseph A. Benjamin Deborah J. Bowen Nelia D. Castillo Gerard A. Swick Maria Tabrizi Kenneth R. Weigand Loyola University Maryland Michael B. Adams Ronald R. Howell David D. Wolf University of Maine David J. Breau Marquette University Steven J. Borkenhagen Keith O. Hanson David J. Hushek Richard J. Kneiser Richard A. Romano Robert A. Schneider Joel A. Tune Jay R. Vonachen Marshall University Ian Levstein University of Maryland Robert H. Carmack Marilyn E. Gist Richard L.Vogel, Jr. University of Massachusetts Mark L. Edwards Patrick N. Keyes Davide M. Villani University of Miami Arthur H. Hertz Miami University Christopher J. Oliss Jacob C. Reinbolt The University of Michigan Arthur P. Bartholomew, Jr. John P. Byrne Gerald S. Dittrich John C. Morley Richard C. Viinikainen The University of MichiganDearborn Deborah Huet Michigan State University Richard W. Bergson Dennis W. Duquette Robert E. Gerrie Douglas M. Klein E. Craig Lesley James T. Morton Andrew G. Sall Arend W.D. Vos Midwestern State University Carol C. Gunn University of Minnesota Fred R. Friswold James W. Rustad Thomas R. Wagemaker University of Mississippi William E. Berry Lee W. Randall Mississippi State University Nancy L. Anderson Melody A. Beatty Ronnie G. Michaels University of MissouriColumbia William L. Howard Steven P. Kuenzel Marilyn J.C. Pfefer Howard G. Sholl, Jr. University of MissouriKansas City Joan L. Hartung Richard S. Loraine Nancy S. Milgram Karen D. Stelling University of Missouri-St. Louis Lawrence E. Janoski Missouri State University William H. Darr Montana State University Jack Ostrovsky Montclair State University Frank X. Nelson Betty R. Nolan Murray State University Marcia McMurphy Westphal Naval Postgraduate School Antonio L. Scinicariello University of Nebraska at Omaha M. G. Newport University of NebraskaLincoln Alan D. Chunka William S. Eastwood Aloysius P. Rieman Frank M. Svoboda University of Nevada, Reno David L. Buckman Gene R. Sheldon Robert L. Sims The University of New Mexico Kimberly S. Hallat

University of New Orleans Diana C. Bulot David J. Mumfrey Ann E. Vockroth New York University Joseph E. Adiletta Gregory J. Altman Mara E. Baror Mario P. Borini John J. Creedon Paul Farber Brian R. Fillebrown Stuart S. Flamberg Thomas Dso Yun Fok Alan P. Gallo Arthur Hausman Robert C. Larose David M. Levine Joseph P. Martori Joel P. Mellis Sanford J. Moster Richard C. Nerod Richard J. Obetz David K. Owens Samuel H. Owens, Jr. Richard A. Propper New York UniversityGraduate School Anne M. Chamberlain Michael Cibelli Donald E. Foley Peter C. Luppino Julia A. Peloso Daniel E. Davies Matthew T. Feldman Martyn R. Redgrave Barry N. Winograd Norfolk State University Santosh K. Choudhury North Carolina A&T State University Donna A. James The University of North Carolina at Chapel Hill Lacy G. Baynes Rajib Ghosh Jack M. Harris Goldston F. Harris Carroll P. Rogers William K. Rollins The University of North Carolina at Greensboro Charlotte Roberts University of North Florida Maria K. Davis Alvin L. Sack Michele A. Stanley University of North Texas Stephen K. Brewer Hugh D. Erskine Northeastern University James M. Fowler William F. Krock Peter Schakow Stephen P. Schultz Gary H. Stein Northern Illinois University Denis M. Desmond Marilyn D. Mathieu Michael L. Menefee Harman J. Ziev Northwestern University Rudolf Carl Claire B. Cox Lee R. Curtis Albert Delighter Michael R. Hogan Kurt L. Janavitz Lawrence R. Kosinski Jerome Lamet Gordon G. Rockafellow John S. Thode University of Notre Dame Charles B. Ammann Dennis C. McInerney Emil Peter Leo V. Ryan Thomas S. Taylor Jeffrey H. Weir Oakland University Mark D. Guthrie C.S. Bud Kulesza Lisa Orr The Ohio State University Marion K. Beaumont Philip W. Glasgo Stephen J. Hopkins Bonnie L. Kaser Steven M. Katko Charles R. Kinskey James G. McMillan William N. Obermyer William B. Patrick Carol N. Richards Ohio University Larry R. Webb The University of Oklahoma William R. Audas Michael F. Farren Cheryl Moore Sandy H. Singleton Cynthia B. Smith Elizabeth K. Willard Oklahoma State University Kristi F. Kelle Cathy J. Wilton Old Dominion University Andrea M. Kilmer Aubrey L. Layne, Jr.

University of Oregon Kevin W. O’Neill Oregon State University Lea A. Hart-Chambers Pace University Jane L. Broderick Pacific Lutheran University Yun Jiang University of Pennsylvania Michael F. Barry Michael S. Blechman Peter C. Brockett Anthony J. Deleon Dwight R. Fearins Albert Greenbaum Frank M. Hatheway James A. Maritz Thomas L. Markl Jack O. Vance The Pennsylvania State University John T. Fogarty James B. Miller Karunakaran S. Pookot James P. Shute E.P. Wenger Paul H. Yeagle The Pennsylvania State University at Erie David Grzelak The Pennsylvania State University Great Valley Grete B. Greenacre Pepperdine University Thomas Dudley Linda P. Livingstone Kyle C. Murphy University of Pittsburgh Frank L. Corsetti John R. Davies Jens T. Jung Donald H. Peters University of Portland Craig Christenson Portland State University Ronald D. Johnson Jennifer M. Ottrhodes Purdue University Robert G. Gibson Anne E. Painter Kenneth J. Wilson University of Rhode Island Louise A.H. Bookman Sean P. McKenna University of Richmond Hector Alonso Charles G. McDaniel Franklin C. Tiller Robert S. Ukrop Rider University Michele Kelley Karol N. Tariska Robert Morris University Patrick J. Litzinger University of Rochester Gary P. Johnson Paul R. Ratoff Bruce H. Watkins Rochester Institute of Technology Cathleen M. Hagen Roosevelt University M.A. Melodie Karnezis James F. O’Bert Robert Rosencranz Robert A. Sperl Rowan University Anthony J. Galvin Rutgers-The State University of New Jersey-Newark Michael T. Bucci Gary F. Dornbush John T. Fischer James J. Ritchie Barbara A. Zank Rutgers-The State University of New Jersey-Camden John Marino-Deabler Saint Louis University Ellen F. Harshman Sam Houston State University Charles E. Amato Samford University Paul Dixon University of San Diego Kathleen L.H. Green San Diego State University Henry J. Bedinger George G. Callaway George T. Hornby Carla M. Kuhns Gene A. Lynes Charles M. Medvitz Cheryl J. Stanislawski University of San Francisco David R. Dull Aaron Miki George W. Parkerson San Francisco State University Chris E. Kovach Catherine A. Sousa San Jose State University Dave L. Coles Peter W. Harper Kam S. Lam

Santa Clara University Chuck C. Cheng Robert J. Emmons David W. Gervais Mary D. Niemiller Jose Torres-Fentances Seton Hall University James Malgieri Shippensburg University Lee Fortenberry Robert Lieblein Sonoma State University Wallace M. Lowry University of South Alabama Glenn P. Blankinchip Sheryl B. Daniel University of South Carolina Elmer F. Frick Travis A. Heneveld Ruth A. Moyer Judy M. Peterson A.E. Rountree David E. Russell Bjorn B. Thaler University of South Dakota Charles A. Jacob Theodore J. Jelke University of South Florida Jay H.L. Calhoun Loretta S. Loftus Thomas E. Pease Joe P. Teague University of Southern California John G. Acker Robert S. Brezovec Martin Butterick Edward M. Casselman Jay H. Grodin Kenneth D. Hill Arthur L.H. Holmes Terrence O. Hughes James D. Leewong Larry S. Londre James Muller James H. Olds Edward F. Pearson Shuhui Peng Richard Phegley Charles W. Reed Robert G. Reppas Southern Illinois University Carbondale Roy A. Causey Southern Methodist University Ashley Arendale Laura C. Baldwin Karey Y. Daniels Eldon D. Kocian Christopher C. Loy Chad S. Plotkin Stephen A. Titcomb Howard M. Whitehead St. John’s University Christopher A. Pappas Lorenzo T. Vanore Stephen F. Austin State University Christopher Simard Craig G. Townsend Suffolk University Katty Ng Susquehanna University Sidney Apfelbaum James App Syracuse University Earl E. Evens, Jr. Robert J. Grider Frederick H. Weeks The University of Tampa Beverly D. Bodine Gregg M. Schoppman Temple University Daniel R. Burkus Arnold Glaberson George Goldstone Ronald S. Gross Richard J. McAlonan Gary Mozenter University of Tennessee at Chattanooga Ruth S. Holmberg University of Tennessee at Knoxville R.G. Manley Texas A&M University Fannie L. Malone The University of Texas at Arlington Vicki L. Goodwin Mark C. Hensel, Jr. Kathleen A. Mora The University of Texas at Austin Donald R. Broadland Earl C. Huse Carol A. Shepherd

The University of Texas at Dallas Denny K. Beran The University of Texas at El Paso Woody L. Hunt The University of Texas at San Antonio Deborah A. Pool The University of Texas at Tyler Billy G. Hartley Jack L. Phillips Texas Christian University David E. Bell Forrest H. Goodall Texas Southern University Willie P. Grant Texas Tech University Coburn A. Buxton Patrick J. Killman David B. Paradice University of Toledo Bernard W. Byrum William M. Ligibel Borge R. Reimer Susan A. Smotherman Tulane University Joseph C. Conrad Marie D. O’Neill University of Tulsa Jackie D. Loertcher University of Utah Terry R. Collins Anupama Phene John G. Pickard Todd B. Schull Valdosta State University Jeana F. Beeland Villanova University Richard P. Caporaso Jeffrey P. Evans University of Virginia Kel-Ann S. Eyler Will Manderscheid Edward D. McCrady Anne L. Stone W.F. Thompson Virginia Commonwealth University Vernon A. Querstein Virginia Polytechnic Institute and State University Hermann Buerger Michael J. Gronsky Edward M. Mazze John G. Rocovich, Jr. John E. Wilson Washington & Lee University Robert C. Gammon Robert W. Moorhead Glenn O. Thornhill, Jr. Washington University William R. Dodd B.C. Downs Whitney D. Erickson Fox Family Foundation Diane E. Harrison Robert E. Markland Raymond W. Paulsen John H. Renth Rowland Ricketts, Jr. Henry L. Seifert Joe E. Strawn, Jr. James A. Tichenor John K. Wallace University of Washington Bothell Lisa M. Beal-Austin Susan E. Tibbles University of Washington Philip R. Bogue Robert E. Hallowell Ward D. Jones John C. Thomas Wayne State University Debra L. Bernstein James C. Fyffe Mark D. Schmidt University of West Florida George V. Sherman, Jr. University of West Georgia J.M. Miller Robert J. Stone West Virginia University Phyllis A. Arnold Andrew F. Conner Thomas J. Krzys Patrick C. Mann Marie L. Prezioso Western Illinois University Vicki C. Klutts Western Kentucky University Craig L. Ballenger

Western Michigan University Jeffrey S. Fecko Quenten T. Wilber Western Washington University Wenderly J. Porterfield Wichita State University Melvin L. Bird Arthur A. Winquist Widener University Clarence C. Jamison, Jr. College of William & Mary Rosemary L. Spell Robert J. Traynor Hays T. Watkins University of Wisconsin-La Crosse Glenn H. Evenson University of WisconsinMadison David Geraldson Daniel L. Goelzer Robert Roemer James Schommer University of WisconsinMilwaukee Robert J. Abramowski Bradford A. Baumann Lea E. O’Day University of WisconsinOshkosh Daniel A. Bollom Larry R. Koeppen Hans G. Storr University of WisconsinWhitewater James A. Karpowicz Wright State University Joseph W. Coleman University of Wyoming James A. Linton Randall W. Ludden John D. Stiles Youngstown State University Kristin B. Hawkins Matching Contributions Amsted Industries Marilyn Franson AXA Foundation Jay Johnston Anton T. Vanek, Jr. Bank of America Colleen Novielli Chevron Humankind George Nimick Kenneth Zee Manfred Michlmayr Conoco Phillips Sandy Singleton Deloitte William C. Hunter Duke Energy Stephen P. Schultz Gartner Rob Stalder Gate City Bank Dennis J. Elbert GE Foundation Abigail Butkus David Bottles James Nuttall Illinois Tool Works Douglas Henry L. Peter Sauer Kraft Foods Merri Beckfield Monsanto Fund James Morrell Pfizer Christina Carr Saint-Gobain Corporation Joseph Sullivan The Fluor Foundation Mark Locascio ToysRUs Bruce Fishstein Tyco Lloyd Wilky Verizon Richard McCarthy Molly Lee Wellington Management Co. LLP Charles Mulhern

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