Fall 1999

When Phil Patterson enrolled in the Executive MBA Program, little did he expect that, less than a year later, he would be a founding partner in a new carpet and upholstery cleaning business. But, the '99 EMBA graduate became so convinced of the viability of the business plan he was writing for a class project that he decided to help take the plan to market.

"Because I was in business school, a friend asked me to review a proposal for a carpet and upholstery cleaning company," recalls Patterson. "The proposal was far from being complete, so I asked my friend if I could use it as the basis for a project in Dr. Ajay Manrai's marketing class. He agreed, so I went to work with three other classmates to research and write the marketing proposal."

Patterson soon discovered that the project required the application of knowledge he and teammates Jeff Bryant, Paul Dorsey and Kristin Williamson had gained in a number of EMBA classes. "We had to begin by researching the demographics of the area, to determine whether such a business could be supported, how to differentiate our business and where to focus our advertising and marketing efforts," he explains. "As Dr. Manrai and our own personal experience taught us, differentiating oneself from the competition is where the real value of what services you have to offer comes into play. If you differentiate yourself upon cost alone, then that strategy can be easily duplicated. People don't just want the cheapest price for whatever you are offering out there; they want to feel good about what they have paid for and the quality of what they received. That was the premise for our business plan. We also had to do a break-even analysis to come up with a dollar amount for our fixed costs--a van, truck-mounted cleaning equipment, cleaning supplies and a secretary's salary, for example.

"Then, we had to calculate the number of jobs at various rates that would cover our fixed and variable expenses and still return a profit. We had to decide the best way to finance the business. Should we look for venture capital or take out a bank loan? And, of course, we had to put all this data together in a package that would convince a potential investor. The project really challenged us to draw on what we'd learned of economics, finance, accounting and marketing."

By the time Patterson's team had completed the marketing plan, he was convinced that this business would work. "I decided to invest, and, over the summer break, my partner, Bill Coolbaugh, and I took the plan to the bank," he says. "By the start of fall semester, Fiber Solutions(TM) was in business, and we are continuing to grow."

There is a message in this story, Patterson believes. "This experience demonstrates the value of a program such as the Executive MBA," he says. "What we learn in those classes is more than just high-level theory. It's practical, real-world stuff. It showed us how we could get started in a business and what our chances of success would be. Today, my partner is supporting his family on the results."

Operating and expanding the business will ensure that Patterson keeps his skills well-honed. "Something always comes up that challenges your understanding and creativity," he says. There was an additional bonus for Patterson, as well. "During the course of the project, I received a lot of encouragement from my teammates," he adds. "Today, one of them has become a close friend. The program has been a way to build professional and personal relationships, too."

Fiber Solutions(TM) can be reached at (302) 425-5553.