Smells Like School Spirit When it comes to designing quality collegiate purses, it looks like these sisters-in-law have bagged a winner.
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What: High-end handbagsemblazoned with college logos
Who: Linda McMahan Gunning andSue Craft McMahan of Bagalogos!
Where: Austin, Texas
When: September 2002
Linda McMahan Gunning was inundated with compliments on theUniversity of Texas handbag she used to carry to university events.Though the bag, which she picked up at a local store, was roughlymade and not properly licensed with the college, it drew a lot ofattention from other women and fans.
As an attorney, McMahan Gunning soon realized that if she couldobtain the licensing rights for collegiate logos and design her ownline of high-end handbags emblazoned with school emblems, therewould be quite a demand for her products. She decided to cold-callthe University of Texas to pitch her unique concept.
"They said, 'If you can do all this, we think it'sa great idea. We'll take a chance with you,'" recallsMcMahan Gunning, 55. With those encouraging words in mind, sheenlisted the help of her sister-in-law and avid fashion lover, SueCraft McMahan, 36, to join her in the logo handbag venture.
Interestingly enough, obtaining licensing agreements wasn'tthe biggest challenge during start-up; finding a manufacturer andresearching what women really want in a handbag proved to be themajor hurdles. They canvassed not only college-age women, but alsoalumni and families of students.
When the pair designed four different types of bags- largetote bag, a smaller baguette bag, a crescent-shaped handbag and abolder game-day bag- marked with the University of Texasemblem, the favorable responses they received wereoverwhelming.
Today, with sales into the mid-six figures, Bagalogos! bags canbe found at www.bagalogos.com and at high-end boutiques andcollege bookstores. Schools on the company's roster include theUniversity of Alabama, Oklahoma State University campuses, TexasA&M University campuses and Texas Tech University; the partnersplan to add seven more schools in 2004. They've also set theirsights on other big-name schools with high-profile and loyalalumni. Talk about higher learning.
On a Shoestring
What: Printer cartridgeretailer
Who: Paul Sowinski of Top-NotchComputer Supplies Inc.
Where: Sterling Heights,Michigan
When: Started in 1998
How much: $5,000
When Paul Sowinski got hooked on attending computer shows inhigh school, his dream of becoming an entrepreneur arrived in theform of toner cartridges. Self-help books like Brian Tracy'sMaximum Achievement: Strategies and Skills That Will Unlock YourHidden Powers to Succeed (Fireside) and a loan from his parentssent the 18-year-old on his way.
Working out of his home, Sowinski bought two computers, phonelines and inventory. His inkjet and laser toner cartridge company,Top-NotchComputer Supplies, was profitable from the start-and the teenentrepreneur was suddenly flush with cash. "My friends alwayshad money because their parents gave it to them," saysSowinski, who made $40,000 his first year in business, doubling itthe next year. "When I started making money, I was like'Ohmigod.'"
Initially indulging personally and professionally on frivolousitems, Sowinski, now 23, has since reformed his spending habits."There was a lot of waste that I overlooked," he says."I feel like I matured a lot." Eliminating three cellphones and changing his business phone carrier cut expenses, as didbreaking down the daily cost of each potential purchase. "NowI look at everything as a potential profit or not," saysSowinski, who estimates 2003 sales of $500,000.
With Sowinski's vision of a million-dollar company on track,his new goal of $100 million is plausible given his passion forbusiness and lean operations. "I wanted to learn byerror," he says. "I've made all the errors you canmake. When [I] cut costs, that's money in my pocket. Everydollar counts now."
