Applying Lessons from B-School to the Family Business
This May, I concluded my sophomore year at the University of Pennsylvania's Wharton School, where I completed the undergraduate program's core curriculum classes. The "core" encompasses the fundamentals of general business education including courses in finance, management and accounting. While lectures on theory are certainly worthwhile to ingest, I find that the true value of an undergraduate business education lies in being able to apply these concepts to everyday life at a young age.
In 2003, my two older siblings and I established a wholesale wedding and party supply business called Koyal Wholesale based in Southern California. When we undertook this venture, I was a junior in high school with sparse knowledge in entrepreneurship. My interest in an undergraduate business education sprouted from the idea that I would be able to expand my scope of business knowledge and apply problem-solving skills to the company directly out of college, without needing to attend an MBA program.
Here are a few ways that I have been able to directly connect my undergraduate business education to my own company and suggestions for how budding young entrepreneurs can do the same:
Human Resource Management
While my older siblings are in charge of hiring employees for our warehouse, it is my responsibility to train the employees and ensure they are familiarized with the products, prices and protocol. Many of these individuals are either my age or older, and thus it is often difficult for me to build respect and credibility. It was difficult for these employees to see me as a coworker, and not just a peer.
Before taking courses in management, my critical errors included inflexibility in dealing with employee concerns and micromanagement of first-time hires. During these past two years, I have learned that human resource management entails much more than the strict allocation of tasks, harsh criticism and close supervision; it involves job enrichment, feedback and team building among other attributes. I learned that there were two main theories of human motivation in the workplace: the pessimistic Theory X, which describes the narrow span of control and authoritarian style that I enforced, and the more optimistic Theory Y, which gives employees the chance to be creative and forward thinking in the workplace.
When I returned to the business during winter and summer breaks and implemented the Theory Y approach to workplace motivation, I was able to develop healthy workplace relationships with my employees. I focused on establishing bilateral feedback channels in which the employees and I evaluated each others' work and progress to increase accountability and ensure a cooperative culture. In addition, I established team projects to enrich jobs by allowing employees to use their creative skills to create displays attracting customers to seasonal products. It was advantageous replacing the top-down, results-driven culture that hindered my business with a more a more bottom-up, team-oriented culture that has allowed it to grow.
Human resource management is an important issue in the workplace, and it is important for young entrepreneurs to experiment to see what management styles fit the culture of their business. Selecting the right modes of organizational development is crucial for growth and sustainability in any business.
Balancing the Books
Before taking a course in accounting, I often confused business terminology and had very little interest in how to "balance the books." In two semesters of financial and managerial accounting, I discovered how integral accounting is to efficient inventory management, assessment of company growth and employee performance evaluation. I also realized how interconnected the field is with all other business disciplines when I continually saw the same terms and concepts show up in my accounting textbooks, such as discounted cash flows from finance and generally accepted accounting principles from business ethics.
Through my classes, I was able to dispel the misconceptions I had about accounting. I longer perceived it as a field entrenched in the mindless calculation of numbers, but saw that there was strategy and creative thinking involved, in finding ways to minimize costs based on analysis of financial statements. I was now interested in looking over and helping to design my own company's statements, knowing what each term and number signified, and how it related to our company's overall progress year after year. For young entrepreneurs, it can be fascinating to apply accounting concepts to actual statements. You will often use this data to influence budgeting and decision-making within your business, and the earlier you learn the basics of accounting, the sooner these skills will positively influence your decision-making and execution.
Business x (Social Science + Math and Science + Other Subjects) = Formula for Success
An undergraduate business education is amplified by courses in other university departments. Students will find that information learned from classes other than their business breadth requirements will be very useful in running a business, analyzing trends in an industry or keeping for general knowledge.
I have been taking Spanish for the past seven years and I have frequently conversed with customers in order to answer some of the questions and concerns that they cannot fully articulate in English. I continue to take Spanish courses in college because it is a pleasant feeling knowing that I am able to add value to my business by learning what I am truly passionate about.
The beauty of an undergraduate business program is that it allows students the flexibility to place emphasis on their business courses, while taking courses in other department to fulfill general requirements and electives in subjects that they have a genuine passion for. This all-encompassing education is what makes the experience at an undergraduate business program so unique and valuable.
Right Combination of Textbooks and Application
Undergraduate business programs strive to develop a wide range of skills in budding young adults, while also placing emphasis on providing a global perspective. This style of education has definitely allowed me to mature as a critical thinker, team player and entrepreneur. Each time I step into a lecture hall in Philadelphia to discuss textbook models and formulas, I am anxious to return to my own business in Southern California to see if I can implement the key concepts in real time. This is the unique challenge and opportunity that an undergraduate business programs has bestowed upon me, and that I present to all young entrepreneurs deciding whether or not to pursue an undergraduate business education.
About the author: Shreyans is a student in Penn's Huntsman Program in International Studies and Business and has been named one of Three Young Entrepreneurs "Most Likely to Succeed" by INC magazine. The website for his company, Koyal Wholesale, is www.koyal.com. For questions or comments, you can reach him at shreyzee@gmail.com.
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