WAHM Forums

The WAHM community forum was created to be a place for work at home moms to share their ideas and stories. In the forum you can find information about work at home jobs, starting home businesses, avoiding scams, and surviving the WAHM lifestyle. In support of the WAHM community, WAHM.com also features instructional articles, easy recipes, as well as job and business listings tailored specifically to work at home opportunities.




View Full Version : Thinking about joining!


Linz1221
05-16-2011, 09:13 AM
Could any one give me a idea on how they do their on accounting for thier scentsy business. What do you write off ? What can you use as expenses? I am trying to get a idea of what i need to do before i order my starter kit. Thanks in Advance.


MamaHen
05-16-2011, 09:35 AM
Although, I'm not with Scentsy I'll list the things my accountant deducted this year since starting my own business with Rodan + Fields Dermatologists.

Products
personal use face care products (I don't have to stock products)
products I demo with

Car:business miles (some here but not as much since I don't have to deliver product)
tag & tax
gas

Home:Power Bill
Insurance
Pest Control
Home Phone
Internet
Cell Phone
Business supplies

probably somethings I've forgotten. Sure helped out this tax season. :)

I'd love to share my business with you if you are still looking.

LAscents
05-16-2011, 11:59 AM
Congrats on your consideration of Scentsy. If you do a search on direct sales tax advice or tax tips for direct sellers, it'll take you directly to the IRS and other sites which will give you a good list of items you can write off.

I basically keep track of everything I spend, and you get a 1099 at the end of the year so you know what you've earned, including everything business related, but also utilities, property tax, insurance, home improvements such as furnace, windows, doors, plus non-insured medical costs or premiums, etc. Because I have a home office, a pro-rated portion of my household expenses are also deductible.

As far as vehicles, you can't claim mileage AND gas. You claim the number of miles that you drive that are solely business related. For 2011 the IRS gives us $.51 per mile and that includes that gas and wear and tear on your vehicle.


jessicaj
05-16-2011, 04:30 PM
A biggie for my Scentsy Biz is postage...
Good luck with your research and in starting your new biz!

christyvw2004
05-16-2011, 08:50 PM
I feel Scentsy provides pretty everything you need to start your business in your starter kit.
After that you will have additional expenses in catalogs, order forms, business cards, products to tote your supplies to shows, mileage, etc.
Basically if it has to do with your business---but remember this is a business---we want to make a profit---so don't spend more then you can afford. Some go slow and steady and some start off with a burst.
Good luck in your business.
Could any one give me a idea on how they do their on accounting for thier scentsy business. What do you write off ? What can you use as expenses? I am trying to get a idea of what i need to do before i order my starter kit. Thanks in Advance.

LAscents
05-17-2011, 04:58 AM
but remember this is a business---we want to make a profit---so don't spend more then you can afford. Some go slow and steady and some start off with a burst.
Good luck in your business.

Excellent advice. This is one of the reasons many direct sales businesses fail. The consultant starts to feel they are spending way more than they are making and that definitely not the way this business model is set up to work.

Linz1221
05-18-2011, 12:19 PM
Thank you guys for all the information. I know that it takes money to make money so i understand there will be out of pocket costs for a bit until i get established. This is the first time i have ever done direct sales. So any other tips i should know before i start this? TIA! :D

LeighM
05-18-2011, 01:08 PM
Have you already joined? I have some advice to help you get started. This is something I did and it worked great for me. '
Leigh

imamomagain
05-18-2011, 05:49 PM
Before I started, I went to the Scentsy website and printed off a copy of the catalog. I started showing my friends and family and started collecting orders before I even joined. Your best investment right away is more catalogs, order forms and a set of Mini-Testers.
Good luck to you! You'll love it!

LAscents
05-18-2011, 05:51 PM
When you're deciding what else to budget for in addition to your $99 starter kit - some other add-ons others choose to purchase soon after starting include:

>Postage & envelopes to mail catalogs
>Ink stamps or labels
>Extra wax to make samples to give away, candy molds and zip lock baggies (depending on how you choose to make yours, there are a variety of ways)
>Some like to add a plug-in warmer to their inventory. Personally I like *not* leading with the plug-in, as it was created as a companion to our deluxe warmer and is not intended to scent a large room, such as a living room - but rather a smaller bathroom. You want to make sure your customers' first experience with Scentsy is positive and if they try to scent a large area with a small plug-in they may be disappointed. You can always build inventory for free by being both the consultant and hostess and collecting the host benefits.
>Business cards - the biz cards in the kit are blank, so you'll want to get real cards. In theory you could put a label on the back of the blank ones or stamp it with a rubber stamp, but it's not very professional and should only be used as such as your 'starter cards' until you can order better ones.

Those are about the basics you really need to get started. There's always plenty of other things you could have or might want, but you can start a very successful business and still keep a decent profit margin with just your kit and a few of the above items.

christyvw2004
05-19-2011, 07:13 PM
Great idea is to show the catalog to your friends and family and let them know you will be signing up...and would be more then happy to get them going in our great scents...also your sponsor may help you host your first party... keep us posted. :)

LAscents
05-20-2011, 05:03 AM
Great idea is to show the catalog to your friends and family and let them know you will be signing up.

That tactic has worked for some consultants in some circles. Though from a business standpoint, it's not advisable to do until you've made your decision to join any company independent of your family and friends. If the basis for starting a business is based on promises or purchases of family and friends, vs. sound market analysis of demand for the product, you could end up in the NFL (No Family/Friends Left to hit up for sales). I've seen it happen time after time over the years.

Some of the directors and managers in direct sales I know who have been the most successful and have grown and maintained a thriving business for years are those business owners who built a solid foundation independent of F/F.

What can happen (again, not in every circumstance) is that F/F may initially purchase from you to 'help you out' or as charity purchases, then the consultant gets a false sense of security as to the ease or promise of future business, but then doesn't ever fully engage other markets. He/she then gets disappointed that the launch party started off with a bang, but then it quickly fizzled after all relatives had all the product they needed.

That said, nothing ever sells itself, if it did we could all just set it out on our porch and people would throw money at you. But Scentsy is an easy sell; as long as you open your mouth and introduce it, you should have abundant customers.



Search Engine Friendly URLs by vBSEO 3.6.1