Class Acts College life can go beyond classes, keggers and cramming for finals. Why not start your own business? These enterprising students did.

College isn't just about dorm rooms, sororities, late-nightcramming sessions and parties. If you're really on the ball,you can also build a lucrative business while you're earningyour degree. Think college isn't the best time to start abusiness? Think again.

There are tons of benefits to starting a business in college.You have a slew of campus resources to help you out, and it'slikely you're not bogged down with lots of responsibilities(children, mortgages, etc.), yet you're chock-full ofcreativity and passion. "[College] students are extremelycreative at how to cultivate market relationships," says CaronSt. John, director of the Spiro Center for Entrepreneurial Leadership atClemson University in Clemson, South Carolina. "Theyhaven't had any losses yet, so they will take a risk someoneelse might not take. Their fearlessness, coupled with theircreativity, gives them opportunities to do interestingthings."

But don't get the idea that it's an easy venture.Experts liken starting a business while in college to starting abusiness while maintaining a full-time job. Still, with some goodplanning, a solid idea and a lot of hard work, you can make asuccessful go at it.

The founders of AllDorm Inc., a college furnishings manufacturer inSanta Clara, California, did. Ryan Garman, 23; Kevon Saber, 23;Chad Arimura, 23; and Ivan Dwyer, 23, met at Santa ClaraUniversity. Garman got the idea for the business while hauling hisbelongings from Las Vegas to Santa Clara during his freshman year."It was miserable," he says. "I thought, 'Therehas to be an easier way to get this done.'" What ifstudents could buy all the things they needed and have them shippeddirectly to their dorms so they would be waiting for them on theirfirst day? He wrote a business plan and, by sophomore year, got hisfriends into the venture.

But not just any friends. Garman took the idea to partners heknew would make the business successful, and they've maintainedthat hiring philosophy to this day. The AllDorm Inc. founders alsorecruited business experts to serve on their board of directors--awise move, according to experts. "I often tell students toteam with a more experienced businessperson," says St. John."That person could bring accounting and finance skills orcontacts in the marketplace."

Garman and his partners met their board members through variousways--from their high schools, through Garman's father, atSanta Clara University's Center for Innovation andEntrepreneurship and at a business plan competition. Theprofessionals had worked with companies like Nordstrom Inc. andStuart Anderson's Black Angus, Cattle Company Restaurants andhad Ivy League contacts to keep the company in tune with the needsof students from other universities. "Never turn away apossible contact," says Garman. "Give them a reason to bepart of your team. [Attracting advisors] usually doesn't haveanything to do with money."

The partners had a head start on getting to know the collegemarket because they were still in school when they incorporated in2000. Still, AllDorm Inc. didn't skimp on market research. Theygot friends and siblings at other universities across the nation toweigh in on dorm furnishings and amenities. This type ofword-of-mouth research was powerful. Although the AllDorm Inc.founders are now out of school, they have at least two collegestudent interns on staff so they can stay in tune to studentneeds--a practice that has no doubt helped grow annual sales tomore than $1 million.

The AllDorm Inc. founders also used resources the campusoffered, from the individual phone lines and Internet connectionsin every dorm room to the meeting rooms on campus that were free tostudents. Having a separate place to meet clients helps project aprofessional image, say experts. "It's the same situationif you're a nonstudent operating a business out of yourhouse," says David Gumpert, author of How to Really Start Your Own Business(Lauson Publishing). "Thanks to technology, it's possibleto appear professional [without] a lot of money." You can useyour cell phone as a business line or get a p.o. box address if youdon't want clients to know you're based at auniversity.

Choosing a Business

You may already know what kind of business you want, but ifyou're not brimming with ideas, look at the needs of yourcommunity. Perhaps a laundry service or term-paper typing serviceare in high demand at your school, says Gumpert. Or, if you'rethinking of expanding beyond the college community, you might checkout Web design or other computer-based services. "The[businesses] that are most likely to be successful don'trequire much money, but do require a lot of hard work andcreativity," says St. John.

Looking at what you're passionate about can also provideclues as to what business to start. For Gabe Ermine, 26, founder ofOHEV RecordsInc., his love for underground music inspired him to start hiscompany. The Tamarac, Florida, entrepreneur started his recordlabel in 1997, with his experience as a record store employee and amember of various bands under his belt. His job at a record storeled to contacts with distributors. "My boss wanted me to ordermainstream music," he says. "There was a huge market forunderground stuff, but she didn't want me to order that because[it doesn't sell as much]."

Still convinced this type of music had a large college audience,Ermine started with $2,000 in savings and signed one band. Becausehe knew the distributors, he was able to get the record out toretailers across the country, including Best Buy and Tower Records.He maintained the label part time while getting his undergraduatedegree.

Now in law school, Ermine devotes part of his time to hisstudies--he wants to bone up on contracts and transactional law tohelp him grow the record label. Still, grossing about $30,000 ayear from his part-time business, he's avoided the loans thatplague most law students. In fact, he's on his way to successwhen he graduates--like one of his bands, which received amultimillion-dollar contract with the Warner Bros. label.

Financing Your College Business

Though you won't have millions to work with in the start-upphase, you do have financing options. It will be a challenge to getmoney, and you'll have to do a lot of bootstrapping. Expertssay most college students finance their businesses with funds fromparents and friends of their parents, credit cards and thelike.

Tara Cronbaugh, founder of TheJava House, a chain of four coffeehouses in the Iowa City,Iowa, area, founded her business in 1994 after a visit with herbrother at University of California, Berkeley. She loved the localcoffeehouses and saw that the area around her school was sorelylacking in such groovy hangouts. Then a junior at Iowa University,Cronbaugh, 30, threw herself into researching what it would take toopen a coffeehouse. She took entrepreneurship and accountingclasses and picked the brains of all her professors.

With a business plan in hand, Cronbaugh went hunting for themoney to open her first location. Luckily, her local Small BusinessDevelopment Center (SBDC) office was on campus. "I foundapplications for equity grants--in my situation, it was called theTargeted Small Business Program," she says. "It was basedon being a woman-owned business." (To find an SBDC near you,go to www.sba.gov/sbdc.) She also received an SBA loan andused some of what was left from her Stafford student loan. "Istill look at alternative ways to acquire financing for [my new]stores," she says. Her resourcefulness has helped Cronbaughbuild The Java House locations to sales of $2 million annually.

The BalancingAct

The ultimate challenge, after choosing your business, learningyour market and securing your funding, will be balancing yourstudies with your business venture. Gumpert suggests taking a yearoff while you build your business, or taking less demanding classesduring the difficult business start-up phase.

Or you could form partnerships to share the load. Garman ofAllDorm Inc. took a year off from his studies to focus full time onthe business while his co-founders finished school. When theygraduated, Garman went back to get his degree. Ermine of OHEVRecords Inc. is balancing law school classes by working eveningsand weekends on his record label business. Whatever method is rightfor you, it's your creativity and drive that will help you earna degree and a successful business at the same time.

And, admit it, it sure beats job-hunting after graduation.