The Sunnyvale Sun

Cover Story

Photograph by Kelly Hsiao

Let's See: Seventh-grade students Oona Gleeson, 13, and Emily Kellison-Linn, 12, (right) work on the projects for their entrepreneurial class with the help of eighth-grader Callie Jerman (left). The girls, who have formed a group called The Geckos, make classroom emergency kits and chains for eyeglasses.

Business-Minded

Future entrepreneurs hone their skills in class

By Erin Hussey

If Donald Trump ever decides to cast The Apprentice with a younger group of business hopefuls, the students at the Girls' Middle School (GMS) will be ready.

"We haven't had a team not make money since the program started," says Tracy Greene, teacher of the school's entrepreneurial program.

The program has been a seventh-grade requirement since the school opened in 1998. It was inspired by the work of the school's founder, Kathleen Bennett who, after writing a well-documented prospectus and business plan, raised enough funding and community support to create a school focused on nurturing and empowering middle school girls.

Today, GMS students from across the South Bay, including Cupertino and Sunnyvale, are following in the footsteps of Bennett--turning small ideas into successful companies.

"It's a lot of hard work, but it all pays off in the end," says Cynthia Cawilski, a Sunnyvale resident and vice president of finance for One Stop Pet Shop, a four-member company that manufactures stylish collars, leashes and bowls for dogs and cats.

The year-long program is patterned after other start-ups.

At the beginning of the school year, students are divided into groups of four. From there they begin brainstorming ideas, ranging from making homemade cupcakes and dog leashes to writing how-to books. Once the group decides on the most profitable and doable project, it begins learning about and writing a business plan.

"They spend the first four months up until Christmas writing their business plans," Greene says.

Before teaching, Greene worked in the technology industry and enjoyed sharing her business knowledge as a volunteer coach for various GMS entrepreneurial companies throughout the years. This is her first year as the entrepreneurial program teacher.

"They figure out what the cost of goods are, we talk about creating an income statement, they do a sales forecast, identify what their sales events are going to be throughout the year, come up with marketing strategies and do a prototype of their products."

Writing the business plan is the hardest and least enjoyable part of starting their companies, most current seventh-grade GMS girls say.

"There were a lot of sections--marketing, sales, finance, product description, manufacturing," says Hannah DeGroot, who lives in Cupertino and is vice president of sales and marketing for the Sparkle Co., which makes beaded necklaces and homemade butterscotch lollipops. The company's tagline is "We keep your friendships sparkling."

"It was really hard because we had to keep revising it every time we changed our minds," says DeGroot.

Greene says she's not very popular during the business plan portion of the class.

"They kind of hate me during the first half of the year because writing the business plan is really hard," she says. "It's a lot of information that they don't know."

After several drafts, however, the girls not only knew how to create a professional business plan, complete with market analysis and projected sales graphs, but were able to start manufacturing and selling their products--the best part of the project.

"We like to place the product in their hand. That way they feel sorry putting it down,'' said Christine Piedmont of Cupertino, vice president of sales and marketing for Spiral Co. The company sells flower pens, decorated journals and homemade toffee.

Each company uses different sales strategies. For the most part, the girls have used a $75 school loan to make and sell their products strictly at school. But on Jan. 28, each company will have the opportunity to pitch its product to a panel of local venture capitalists in the hopes of expanding both the company and its selling capacities with an even larger loan. In the past, the girls have received between $100 and $200.

"They have to pay back what they borrowed with a percentage of their profits," Greene said. "They also are required to give 20 percent of their profits to charity."

And, just as in the real world, there are taxes and fines.

"I charge them taxes and fine them for not getting their homework done," Greene said. "If you have to get your taxes in on April 15 and you have to file an extension, that extension costs you money. I don't want to kill them, but I want it to be real for them."

Following the entrepreneurial night in January, the companies are required to submit quarterly management reports and hold at least two non-school sales events. In May, when the school year is drawing to a close, the students will hold liquidation sales and close out their companies.

"Last year the highest net profit was $1,100, so each girl on that team brought home $360," says Greene. "Our lowest team made $14 so they each got $3.50, which is still a profit."

The most successful GMS entrepreneurial project was the book Middle School--How to Deal by Sara Borden, Sarah Miller, Alex Strikeleather, Maria Valladares and Miriam Yelton in 2002. The book was picked up and published by Chronicle Books and is still selling on Amazon.com.

But at the end of the year, it isn't the amount of money they've earned that counts, but what they've learned throughout the project.

"It's good for the girls to see something go from an idea all the way through to wrapping up the business," says Christine King, volunteer coach for the Strings, Snacks and So Much More Co. "I've seen adults who haven't been able to do that."

King, whose daughter Amanda completed the program last year, added that it's gratifying to see the positive growth in the girls.

"It's so rewarding watching these girls, who at the beginning of the year don't know anything about starting a business, develop into young women who are ready to go out there and market their product.''

Greene also enjoys seeing the girls not only become more frugal and business-savvy, but also learn how to be helpful team members and strong, confident individuals.

"The best example is of this one girl who was so quiet," Greene said. "The other day one of the teams was complaining how about this person was taking all customers away from them, and it was that girl. It just really builds confidence. They can really get to shine."

For more information on the Girls Middle School or the entrepreneurial program, visit www.girlsms.org or call 650.968.8338.