How Sorority and Fraternity Ties Can Help You

There's more than one type of family you can turn to for support.

You already know on-campus fraternities and sororities are great places to meet people. But did you know that, aside from the philanthropy, the weekend parties and the alumni mixers, your Greek organization could be the jumping-off point for your college business? It's true--from the networking possibilities to having a pre-made focus group that can judge your ideas, you're in a good entrepreneurial petri dish. "Think about your active fraternity or sorority chapter and your alumni group--both can help you," says Richard Scruggs, director of the Center for New Ventures and Entrepreneurship at Texas A&M University in Houston. Your fraternity brothers, for example, might be the labor force to help you launch your product or service on campus. If you're talking to the alumni constituency, you might find some experienced lawyers, accountants, bankers, manufacturers, or even a mentor.

That type of fraternal networking was Ryan Bonifacino's modus operandi from the start of his business in 2004. Originally named Yakka Studios, the Newark, Delaware, company first specialized in special event and corporate photography. Since fall 2005, what is now Bozmedia has expanded into digital media services, brand management, and internet marketing and advertising. A founding member of the Pi Kappa Alpha chapter at the University of Delaware, Bonifacino, 22, became a regular at fraternity events both locally and nationally. "Our main investor was actually one of our sponsors for a fraternity philanthropy event," he says. "He loved the idea, the plan, the fraternity and our energy."

Harnessing your fraternity network is key. "You already have a strong network. You have a potential source of customers," says Tom O'Malia, director and chair of the Lloyd Greif Center for Entrepreneurial Studies at the University of Southern California. "You have to know what you're looking for as you're talking to these people. It's easy to collect a lot of ideas--it's not very easy to find a lot of 'pains' and create a business [to fix those.]"

Also remember that, while your network is a benefit, "it's not a silver bullet," says Scruggs. Networks are a good start, but they shouldn't be your only source of market research. And don't expect loads of free labor--if you engage the help of your Greek brothers or sisters as part of your sales and distribution, for example, you'll have to pay them, give them a stake in your company or offer some other reward for their time and effort, notes Scruggs. Also, while you should definitely chat up your business idea with your fraternity alumni for leads, don't choose a partner, banker, lawyer or any other professional simply because they share your Greek affiliation, warns Scruggs. Use the same diligence you would when considering any business professional.

The fraternity ties definitely helped Bonifacino's startup: His first photography gigs were at Greek events, and he says he "must've given out thousands of business cards at fraternity functions alone." Since graduating in spring 2005, he's built Bozmedia to $460,000 in projected sales for 2006.

His brothers would be proud.

Management
Fraternities For Future CEOs
01.03, 12:00 PM ET Last Updated 03.03 12:00

NEW YORK - Don't be surprised if you see your company directors exchanging secret handshakes at the next board meeting. After all, 85% of Fortune 500 companies CEO's list of America's largest corporations and over a quarter of Forbes 100 were members of college fraternities.

Despite what movies such as Animal House suggest, fraternities and sororities are more than just freshman rush and beer busts. The social skills that help students gain admittance into the Greek system are the same aptitudes that can later give them a leg-up in corporate

climbing. Plus, once they've graduated, they can tap into the network of past fraternity brothers or sisters who litter all tiers of corporate America.

Fraternity Facts, Who is Greek:

76% or U.S. Senators
71% of men in Who's Who
85% of Fortune 500 companies
63% of U.S. Cabinet Members since 1900
80% of Alumni donators
78% of lawyers
65% of doctors
All but three presidents since 1825

Big Companies, Old School Ties

The numbers certainly seem to back this theory up. A mere 8.5% of full-time university undergraduates are members of either a fraternity or a sorority.

CEO's of the two largest companies, Citigroup's Sanford Weill and AIG's Maurice Greenberg were members of two relatively small ethnic-based fraternities, Alpha Epsilon Pi and Sigma Alpha Mu respectively. Others tended to be members of somewhat larger national fraternities, who may have a statistical leg up for producing CEOs but that does not always hold true.

Best Fraternities For Future CEOs
Fraternity	Members Who Are Forbes 500s CEOs
Beta Theta Pi	11
Sigma Alpha Epsilon	9
Sigma Chi	9

Wachovia CEO G. Kennedy Thompson is a member of Beta Theta Pi, the old and relatively large fraternity which he joined while an undergrad at the University of North Carolina. He stated "the connections have continued beyond my university years to my business life."

He is also a member of the fraternity that produced the most CEOs among the biggest 500 companies in the country. Beta Theta Pi can boast of 11 such CEOs, Sigma Alpha Epsilon and Sigma Chi are tied in second at nine.

Dan Ducevich the researcher for the article said he would like to do a similar ranking for sororities but it would be difficult because he does not know of any large sorority organization to provide the data.

Also, he said, "there's very, very few female CEOs."

* Note: President Clinton is included though his fraternity became coed in 1990

We remind you:

Definition Not for four years: To be involved with collegiate friends and fraternities/sororities/societies "not just for four years" (but for life). It is most often used to speak of a particularly deep commitment to fraternity, sorority and being "fratty" or "preppy" in the conservative sense. Implied is an affinity for timeless tastes, pursuit of sustainable ambitions and interests, and an appreciation of tradition.