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Chelsea Sloan probably won't be looking for a job when she graduates from the University of Utah this spring. She may even be hiring.
Sloan was barely a sophomore when she hatched a business idea: a hybrid retail network called Uptown Cheapskate that sells cool apparel to young adults who revere fashion but lack the means to shop at upscale stores. She didn't let her own youth, or a lack of means and a degree, get in the way of her ambitions.
Her franchise enterprise has since grown to 14 outlets with eight more on the horizon.
Uptown Cheapskate generated enough revenue in its first year to rank among the top student-launched business in Utah Student 25, a competition organized by Brigham Young University business professor John Richards as a way to promote entrepreneurship among college students.
" A lot of these students hustle. Some start businesses out of financial necessity. They don't even recognize they are entrepreneurs," said Richards, associate director for the business school's Center for Entrepreneurship and Technology. "A lot don't have their accounting taken care of, and they haven't properly formed legally."
Contest organizers offer workshops to teach participants how to keep their books and jump through the legal hoops of running a business.
Richards borrowed the idea for the competition from Inc. 500, applying the concept to businesses started by full-time Utah college students. If such businesses generated even one dollar in revenue last year, they are eligible for the Utah Student 25.
The competition resumes this winter. Student entrepreneurs have until Wednesday, Feb. 1, to apply. The top 25, determined by their revenues and profits, are announced in count-down fashion at a formal event March 1 at Salt Lake City's Grand America hotel.
While Sloan enjoyed wearing a fancy gown and being treated like a star at last year's gala, she said the competition was most helpful in building her confidence and introducing her to other young business people. Winning in the marketplace doesn't require experience and an MBA.
"I didn't know there were people my age and students who were successful in business," said Sloan, who is 25.
Now in its third year, Utah Student 25 has been dominated by BYU students with Stubtopia, a ticket-selling company started by Dallen Allred, winning in 2010. Paul Dickson and Taylor Turnbull claimed the top ranking in 2009 with Meter Solutions Pros, a firm that installs automated metering equipment. The notoriety generated by the rankings has helped some companies grow and opened new opportunities, according to Richards.
Stubtopia's revenues doubled within a few months, for example. And Meter Solutions was acquired by a large firm to become Vivint SmartGrid. Turnbull and Dickson are now working on a spin-off called Vivint Solar, a residential photovoltaics-installation firm fueled by a $75 million fund.
Uptown Cheapstake also has blossomed after its third-place ranking last year, with its franchisees on the verge of increasing five-fold. Richards attributed Sloan's success to networking acumen and insights into the youth fashion market.
"She has sought mentors among people who have been there, done that," he said.
Sloan started college at BYU and left to serve a church mission. When she returned to school, she hatched her business idea with her brother. Uptown Cheapskate — the name says it all — opened its first franchise outlet in February 2009 on Salt Lake City's 200 South in a space once occupied by Cup o' Joe. The stores buy, sell, trade and consign clothing and accessories to a 18- to 25-year-old demographic, but customers ranges in age from 15 to 45, Sloan said.
Looking after this inaugural store was like "having a child," so the young fashion franchiser transferred to the U. to be closer to her baby. Her franchisees, however, are mature business people. Now spread across 10 states, most franchisees are old enough to be Sloan's parents. Following graduation this spring, she would like to return to school to pursue a master's in business administration or a law degree, but she figures she'll be too busy growing the franchise.
"Maybe when I'm 30," she said
About Utah Student 25
This company ranking launched in 2009 by a Brigham Young University business professor honors entrepreneurship among Utah college students. Deadline for entry is Feb. 1, with winners announced at a March 1 gala. For more information, visit http://www.utahstudent25.com.