Happy 2010 from Startup Princess!

My heart is full of gratitude for all of you! Thank you, thank you, thank you for making 2009 so fantastic by loving our community and supporting our events, reading this site, and connecting on Facebook Startup Princess Group & Twitter! We look forward to the year ahead and have some wonderful plans in the works to help you all take your business dreams to the next level! Can’t wait to see you again and hear what’s next for you.

May all of your 2010 Dreams come True!

Kelly King Anderson, Startup Princess Founder/Managing Director

Introducing Summer Bellessa, Founder of Eliza Magazine

Here’s one of my most favorite people I met in 2009: the talented, beautiful (inside and out) and ambitious Summer Bellessa former Model, Founder and Editor of Eliza Magazine. Summer’s vision for sharing modest fashion as an art form is inspiring and beautiful. It’s clearly a challenge to create a new magazine in today’s economy yet Summer has proved there’s a market for her niche. I remember a conversation where Summer shared with me that yes, a lot of magazines have and will go digital (Eliza magazine offer both options) but fashion mags won’t become extinct because women want to tear out their pages…(so true! I have a vision board with some of her pages).  If you haven’t seen a copy of one of her magazines check it out on her site and you’ll love the narrative style of her features and the interviews are fantastic. Be sure to check her blog too!

Enjoy getting to know Startup Princess Summer Bellessa!

Hometown: Chicago Heights, IL

Current Residence (City, State): Los Angeles, CA/Gilbert, AZ

Education: Some college, but I never did get that degree.

Professional Background: Modeling, now publishing

What you wanted to be when you grew up: Model/Actress/Creative

What you are: Editor and Founder of ELIZA Magazine

Brief Summary of your Start Up: I started ELIZA Magazine because there were no magazines that had my view point. I wanted high fashion with positive articles and images of women.

Company Website? elizamagazine.com

What inspires you? Audrey Hepburn inspires me with her style and the life that she led.

How long have you been in business? 3 years

How did you fund it? Bootstrapping it.

Do you have a Fairy Godmother (or Mentor)? My mom.

Do you belong to any Business Organization or Networking Groups? Smarty LA, Linkedin

Current Business Challenge? The economy

What are you doing about it? Cutting back, but still being bold.

Favorite motivational quote: “The future belongs to those who believe in the beauty of their dreams.” – Eleanor Roosevelt

Family? Not yet, someday.

Favorite book? The Bell Jar and Where the Sidewalk Ends

What do you do to relax? Watch movies in bed with my hubby.

What do you want to change most about your world? Make more money.

What are you most proud of? I try to learn from my mistakes and help those around me.

What advice would you like to offer other Startup Princesses? Start now with what you can, don’t wait for everything to be perfect.

Favorite Magic Wand (tool/resource)? Friends.

If you could design a tiara, what precious stones would you use? I would design a tarnished silver wreath of encrusted diamond flowers.

Reselling Products Online: Dropship vs. Wholesale

Have you ever heard of a magical supply chain management system known as “dropshipping”?

Dropshipping is a way of purchasing products for resale without carrying an inventory. You sell products to customers, whether on eBay or your own website, and then you order those products from a dropshipper who ships them directly to your customer.

Dropshipping is a legitimate way to purchase products for resale, and more manufacturers and distributors are offering dropshipping services all the time. However, like any system, it has its pluses and minuses.

The purpose of this article is to compare purchasing products via dropship to purchasing from a wholesaler so you can decide which system would be the most beneficial to your online business. Dropshipping vs. Wholesaling is an intense battle, like Coke vs. Pepsi or Mac vs. PC. The system that works best for you will probably have a lot to do with your capital, the type of product you want to sell, and your commitment level.

An Overview of Dropshipping

Purchasing your products via dropship is beneficial because it prevents you having to carry an inventory. This means you don’t have to make a large initial investment, and you don’t have to rent or purchase a warehouse or other space to store your products in. You don’t have to buy packing and shipping materials or spend the time to package and mail each order. Because you have no inventory, your product line is extremely flexible: if a particular product isn’t selling, you can simply remove the listing from your website or eBay store – you don’t have to worry about unloading a bunch of unsold cowboy hats or roller derby skates.

The Negative Aspect of Dropshipping

The biggest negative of dropshipping is that you almost never get as good a price as you would purchasing wholesale. I recently contacted a supplier of hand-made bamboo furniture and the difference between dropship and wholesale rates was staggering: their chairs were discounted 75% off retail price when purchased wholesale, but only 25% discounted when purchased via dropship.

In general, wholesale products can be purchased for around 50% retail cost, and dropship products for 75% . Dropshippers may also charge fees – from $3 to $20 per order. Depending on the product and order size, this can take a significant bite out of your profits. Other issues revolve around supply. When purchasing from a dropshipper, you have much less control over the availability of products. Also, dropshipping does not allow you to dictate how the item is shipped, and returns can be tricky.

The Benefits of Wholesale Product Souring

By contrast, purchasing wholesale allows you more control but also requires a larger investment and greater commitment. Here are a few things to consider:

• You’ll get your products cheaper, but you’ll have to store, package, and mail them.
• You have to count the time you spend on order fulfillment as costing an actual dollar amount – the phrase “time is money” is not just a cliché.
• The hours you spend packing and shipping orders are hours that you could have invested into other aspects of your business, or used to earn income through another venue.
• When purchasing wholesale, you may have to make a large initial order (anywhere from $100-3000) or buy products in “packs” or “crates” (six pairs of jeans or a flat of 40 candles).
• If any of your products don’t sell, you’re faced with slashing the price or eating the loss.

Purchasing wholesale allows you to control your inventory and ensure you have the supply to meet your demand. You also have more flexibility in how you sell your products. Promotional offers like “free shipping on orders over $50” are much easier when you have control over the order and the way it’s shipped. You may be able to negotiate bulk shipping discounts with a post office or courier, and you can easily include fliers and promotional materials in your packaging. One of the biggest benefits of doing the order fulfillment yourself is the ability to exercise quality control – you can examine each product you send out and provide extras like a thank you note to your customer or gift wrapping.

3 Things to Consider – Dropship vs. Wholesale

1. Are you absolutely sure what product you want to sell? Imagine that you want to sell umbrellas online. If you are positive that umbrellas are all you want to sell and you’ve done the requisite market research, then you may want to go ahead and purchase wholesale. If, however, you think you might want to sell umbrellas, but are also considering golf clubs, teddy bears, and power tools, you could test-run your prospective products using a dropshipper.
2. Is there is a dropship or wholesale supplier available for your product? While almost any product can be purchased wholesale, dropshipping is not yet as diffuse. Brand-name products and certain other categories like clothing are more frequently available through wholesalers than dropshippers.
3. Can you afford to use a wholesaler? Purchasing wholesale simply may not be an option for you because you don’t have the capital or credit score for a large initial order. In this case you may want to use a dropshipper for a few months until you’ve built up enough profits to invest in a wholesale purchase.

Segueing from dropshipping to wholesaling or using a combination of the two systems is often the best option. Using a dropshipper allows you to experiment, to findwhat products work the best for you. You can test the popularity of your products before making a large commitment to them. In some cases, you may want to use a dropshipper for the majority of your product line, but purchase one extremely popular product through wholesale to get a better discount. Generally I encourage people to sell products from a dropshipper in the initial stages of their online business to get the hang of it, and they can switch to purchasing wholesale later to improve their profit margins.

If you are interested in finding dropship or wholesale suppliers, there are many databases you can access for small monthly or annual fees.

One of the best dropship companies I work with is WholesaleMatch.com. They provide a 100%

money-back guarantee, if you don’t make your money back within the year, as long as you give them the chance to work for you by accessing their services at least once a month.

Leah Darrow is a blogger for a wholesale dropshipping company. She also writes educational material for Fortune Learning Systems

and Stores Online, all geared toward helping people start online businesses. She and her husband Ryan were married in December 2008, and they live in Provo, UT.

Dare to Dream: Seize the Opportunities and Embrace the Challenges of Life and Business

Have you ever wondered what you would do if someone offered you an opportunity to leave your career job (with benefits) to buy into a business with no jobs on the calendar, no benefits, a promise that it will be whatever you make it out to be Read more

Introducing Catey Hill, Author of Shoo, Jimmy Choo! The Modern Girl’s Guide to Spending Less & Saving More

Here’s a smart girl, Catey Hill (Money Editor for New York Daily News Online and former Forbes Financial Marketing Manager) who knows what she wants (shoes mostly) but she’s wise enough to set limits and boundaries to keep her finances in check.  Luckily for the rest of us she’s written a book to share her strategies and tips to help other women in their 20’s-30’s take control too.  Catey covers spending, credit cards, student and auto loans, saving, investing, buying a home, and more. She teaches with a I’ve been there/big sister approach and offers exercises and worksheets to help her readers.

I recently met Catey on Twitter and was delighted to learn about her newly released book, with a catchy title “Shoo, Jimmy Choo! The Modern Girl’s Guide to Spending Less & Saving More”. I thought many of our readers would resonate with the subject of Catey’s book, (it’s 0n my Amazon wishlist) and enjoy learning more about why and how she wrote her book.

Congratulations Catey for publishing your book and for her publisher for moving mountains to get it in the stores before Christmas too…way to go! Best wishes with your book launch and all the opportunities ahead.

Enjoy getting to know Startup Princess Catey Hill!

Hometown: Atlanta, GA

Current Residence (City, State): New York, NY

Education:
- B.A. in Psychology, Business Minor from Tulane University
- M.A. in Journalism from the University of Texas at Austin

Professional Background:
-Author, Shoo, Jimmy Choo! The Modern Girl’s Guide to Spending Less & Saving More (Sterling Publishing, $14.95)
- 6 years of professional marketing experience, including working as the Financial Marketing Manager for Forbes
- 6 years of professional writing experience, including my current position as the Money Editor for the New York Daily News online

What you wanted to be when you grew up: A veterinarian (but as it turned out, I faint at the sight of blood!)

What you are: Writer (a pretty blood-free profession, so I’m doing OK).

Brief Summary of your Start Up: I’m an author and I’m pleased to share my first book, Shoo, Jimmy Choo! The Modern Girl’s Guide to Spending Less & Saving More.

Company Website: www.ShooJimmyChoo.com

What inspired you? Watching other women go through what I did – spending to much, not saving enough, feeling intimidated by money management and investing – and realizing that there was not a personal finance book that truly spoke to women like me (those of us who know we’ll never give up gorgeous shoes or much-needed beach vacas but still want to get out of debt and save more).

How long have you been in business? 3 years

How did you fund it? Currently, I work as the Money Editor for the New York Daily News to supplement my income as an author (what can I say, I love new shoes, and I can’t afford them on my author salary alone!).

Do you have a Fairy Godmother (or Mentor)? My girlfriends

Do you belong to any Business Organization or Networking Groups? Association of Women in Communication, LinkedIn

Current Business Challenge? I’d like to help even more women manage their money in a savvier way.

What are you doing about it? I’m working with the New York Junior League on a free seminar series, and I hope to partners with other organizations to do something similar.

Favorite motivational quote: Just do it.  (OK, it’s a Nike tagline, not a quote, but I love it! It’s simple, concise and inspirational.)

Family? Jay Robert (partner);  Mouse, the cat (yes, she’s family!); Carey and William Hill, parents; Susie Hill, sister; my girlfriends.

If so, how do you balance family and business? I block out “no-work” zones on my calendar at least twice a week and go have drinks with the girls, see a movie with Jay, have brunch with an old friend, etc.

Favorite book? Anna Karenina

What do you do to relax? Reading, writing and wine (what can I say? A nice glass of Savingnon Blanc after a hard day of work works does the trick!)

What do you want to change most about your world? Time – I need more hours in the day.

What are you most proud of? My book, Shoo, Jimmy Choo! The Modern Girl’s Guide to Spending Less & Saving More, and my relationships with my boyfriend and friends.

What advice would you like to offer other Startup Princesses?
1)    Don’t be intimidated by managing your money!
You can spend less, get out of debt and save smartly.  Ladies, if I – the girl who can’t spend an hour without scouring the eBay for the latest Prada bag and who refuses to wash her hair with anything other than Kerastase – if I can do it, so can you!
2)    Start taking control of your finances today!
The sooner you start, the sooner you’ll have the money you need for your dreams.

Favorite Magic Wand (tool/resource)? Bankrate.com – when in doubt about almost any financial issue, they’ve probably got the answer.

If you could design a tiara, what precious stones would you use? Emeralds and diamonds.  Green is the color of money – and we all know I love money – and diamonds, in addition to being a girl’s best friend, are elegant and classic.

Thank you, Catey!

5 Things To Help Lower Your Tax Bill

Before the year is through and you put away all the Christmas decorations, stop and consider your bottom line – your business bottom line.  Your goal is to decrease your taxable income and lower your overall tax bill.

Here are 5 easy steps cash based businesses can take now that may help:

1. 1. Pay any and all outstanding bills – If you have stacks of bills on your desk that you have set aside until after the holidays to pay – don’t!  Pay your bills now.  If you write the checks on or after January 1st you may not be able to claim the expense on your 2009 tax return.
2. 2. Consider buying new equipment – The IRS will again allow you to expense as much as $250,000 worth of new equipment purchases before depreciation comes into play.  Take advantage of this opportunity.  Even upgrading your software or purchasing a new printer can lower your taxable income for the year.  Remember the equipment must be for business and not personal use.
3. Purchase any needed supplies – A jewelry designer has orders for 50 sets of earrings to be delivered in early February.  Don’t wait until January to buy the supplies you know you will need.  Purchase them before the end of the year and expense them on your 2009 tax return.
4. Pay employee bonus’s – Employee bonuses are often based on total income earned for the year or other revenue goals.  This is a great incentive, but write the check on December 31st so you can record the expense in 2009.
5. Invoice after the 1st of the year – If your business is cash based, meaning you don’t accrue income using accounts receivable and you only recognize income when the cash is received, wait to invoice clients until January 1st.   This will allow you to recognize the income in 2010 rather than 2009.

These are just a few ideas to get you started. As always, please consult your accountant or tax advisor as these strategies may not be best for all individuals and/or small business.  You are also welcome to contact me directly with any questions at lindseypatrick1 (at) yahoo (dot) com I would love to speak with you.

Startup Princess Included on Forbes List of 30 Women Entrepreneurs To Follow On Twitter

Recently, Forbes.com published a list of the top 30 women entrepreneurs to follow on Twitter.

Not only is this a fantastic networking resource for so many of us in the Startup Princess community, but it’s an honor for Kelly King Anderson, the original Startup Princess herself, to be featured on the list.

We hope that you’re all taking advantage of the awesome opportunities at hand. Thanks for helping make Startup Princess the success it is!

Moments of Peace- Gwen Bell’s Best of 2009 Blog Challenge

I’ve been inspired by this month’s “Best of 2009″ blog challenge created by the extraordinary Gwen Bell, one of our favorite Fairy Godmothers here at Startup Princess known all over the world Read more

KSL News Features Startup Princess in Story on FTC Blogging Regulations

Video Courtesy of KSL.com

Utah! Teddy Bears Wanted for At-Risk Kids * Donate at Bank of American Fork

Here’s a great opportunity to spread some Christmas cheer with the Bank of American Fork Annual Charity Event: Project Teddy Bear. Over 6000 bears were donated last year to help at-risk children at two different facilities in Utah. This year Bank of American Fork hopes to exceed that number. (50,000 Bears are needed to meet the demand!) The drive goes now through December 16th at all Bank of American Fork locations.

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