Baughman, an advertising masters student, began creating colorful crocheted products in January for a fun hobby and ended up making it a business. Despite the three hours it takes to make a scarf and headband set, Baughman said she loves the feeling she gets while spending time working on it.
“They say when you do what you love, you never work a day in your life,” she said. She hopes to combine advertising with her crocheting business to build a future career.
Many MSU students like Baughman have turned to creative methods in making money in order to make ends meet. Some have taken to social media to sell and advertise their products or services.
“Certainly there are more young people starting companies than ever before,” said Tom Donaldson, the Regional Director of the Small Business Development Center.
Donaldson said because of loosened regulations on businesses, there are more opportunities for people to get started in Michigan. Resources such as the center and the Michigan Business One Stop website have made it easy for entrepreneurs to look up possible requirements and licensing they might need to operate and to get their questions answered.
Going out on a limb
Baughman advertises her scarves on several different MSU Facebook groups and also has a page on the marketplace website Etsy.
Baughman said she recently saw a spike in sales of her croch eted scarf and headband pairs over spring break and continues to expand her hobby into a growing business.
She said she got the idea from Pinterest, a social media website allowing users to post photos, or “pins,” on virtual boards, usually of crafts, do-it-yourself projects and other interests.
“I kept seeing posts for scarves and thought, ‘Oh, I can make them for myself,’” Baughman said.
Other students have picked up small businesses or side services on the side, including the creators of Courtney’s Bakery, MSU Delivery, Yours Truly nail polish and media and information junior Andre Mosley, who provides barber services.
Although the prospect of opening a business can seem overwhelming, Michigan currently has one of the easiest processes to start something up, Donaldson said.
Business ventures such as Baughman’s don’t require a license because Michigan is different from many other states, where every business has to acquire a general license. This gives people more freedom and ability to create businesses on their own.
Legal restrictions
East Lansing City Clerk Marie Wicks said the city has little to no involvement in individual small business endeavors besides the restaurant industry and taxi services.
Other than Spicers Grill, a food truck sometimes set up by students selling Algerian-style food behind the Division Street Parking Garage, Wicks said she hasn’t been involved with local student businesses.
Wicks said taxi services have been the source of several issues in the city, in some cases causing traffic violations.
“There are way too many cabs at this point,” Wicks said. “It’s starting to cause congestion.”
Wicks said there are only 190 licensed taxis with permits in the city, but other taxis still provide their services in the area without the proper permit to drive in East Lansing.
“We have that happen frequently,” Wicks said. “They pull an illegal U-turn and they get pulled over. Then it’s discovered they don’t have a permit. That’s potentially a $500 ticket not including court fees.”
Despite the potential costly repercussions of not having the proper licensing and permits, mathematics sophomore Daniel Dunwoody operates his business by finding supposed loopholes.
Dunwoody started his own taxi business, Black Daddy Taxi, in January.
Technically not an official taxi driver, Dunwoody claimed is allowed to drive anyone who calls him, just as he would give friends a ride.
Without decals on his vehicle or advertising in places beside Facebook, he believed he was allowed to continue to operate his business, he said.
He continues to charge $5 per ride, no matter the amount of customers in the car, he said.
If he were to be pulled over, Dunwoody said it would be as if he were pulled over as anybody else.
“I might be looking (to get licensed) in the future,” Dunwoody said.
Despite Dunwoody’s interpretation of the law, Wicks said his business is illegal, as anyone who is operating as a taxi service needs the correct certifications.
Wicks said the city is aware of his operation and supports him as a student.
“We would really like him to come to the city and get licensed,” she said. “We think that would actually add a lot of legitimacy to his business.”
Dunwoody said he was going to do more research to look into cost, an issue he was initially concerned with.
“If they encourage me (to get licensed) I guess I can give it a try,” he said.
Serving up satisfaction
Yet not every business is so easy to start up and there are different types of businesses requiring licensing, including barber services.
Media and information junior Andre Mosley started his own business cutting students’ hair.
Mosley said he’s not worried whether or not he has a license for his work, because he has created a good rapport with customers.
“I started my freshman year just cutting my friend’s hair,” he said.
From word of mouth, his business grew with more and more students requesting his services.
Mosley said he has done his research on the right procedures of cutting hair as well as how to maintain a sterile and clean environment.
Mosley currently cuts hair at his apartment, but creates a friendly atmosphere for his customers by putting on music and having a welcoming demeanor.
“Everything that my barber uses on me, I probably use on my customers,” he said. Mosley only provides haircuts, but in the future he hopes to learn styling techniques.
He said he plans to attend barber school after he earns his college degree and would be happy if it ended up being his future career.
“I love what I do and I love...the reactions I get from (customers),” Mosley said. “I get a real special feeling about that.”
Michigan laws are a way for entrepreneurs to produce their product in small quantities and get feedback from customers, Donaldson said.
“It’s really been embraced by the business community,” he said. “Before you invest thousands or millions into your idea, (you can) try to get your product out in front of a market, in front of people, to test it.”
Donaldson said this gives entrepreneurs a chance to hone their product to customers’ tastes and have more success in the expansion of their business.
