Oh, to be 10 again. So carefree ... thoughts of dolls, swimming pools, summer vacation and ... inventory?

For 10-year-old Emma Lathrop of Edwards, taking inventory is just another part of the routine in maintaining her business selling the novelty hair ties known as scrunchies at White Balcony in Edwards.

Lathrop was 9 when she started her business, Bee Beautiful, last January. She first got the idea to make the scrunchies - she hand-crochets each one - when she saw a similar project a friend from Hawaii was working on.

Her friend crocheted leis out of funky yarns and sold them at a garage sale. The leis were a hit and Lathrop was inspired.

She took the same kind of yarn and crocheted scarves for her aunt and grandmother. She also learned how to use the same yarn and technique to crochet scrunchies.

Things picked up for Lathrop when her Girl Scout troop started their annual cookie sale. She was selling cookies at businesses at Riverwalk in Edwards when she stumbled upon the White Balcony. A walking promotion, she was wearing one of her own creations in her hair and struck up a conversation with Justine Reed, owner of the eclectic, little-bit-of-everything store White Balcony.

Lathrop's mother, Susan, asked Reed if the scrunchies were something she would be interested in selling at the store, and when the answer was yes, Lathrop started crocheting.

Each scrunchie takes her about 45 minutes to make and she usually works on them while she is watching TV.



Lessons in business

Emma, who just finished fourth grade at the Eagle County Charter Academy, has always been business inclined. For the past four years, she has been the top cookie seller in her Brownie and Girl Scout troop.

And while cookie-selling might have been what first sparked her drive and competitive nature when it comes to business, there were still lessons for her to learn when she branched out on her own.

"I think she's learned that you can't just have a product and kind of throw it out there and expect people to buy it," says Susan Lathrop. "She's learned how important product merchandising is - making the product appealing and making the customer want to buy it. She's seen how retailing works."

It's true Emma has an impressive knowledge of retailing, particularly for a 10-year-old. One of the first decisions she made as chief executive of Bee Beautiful was to sell the scrunchies on consignment - after, of course, learning what consignment actually means.

Every few weeks, Emma - escorted by her mother - heads to the White Balcony to take inventory. She sees what colors are selling and how many new scrunchies she needs to make to replace them. She also collects her earnings.

Over the course of about six months, Emma has sold 15 scrunchies. Her biggest sellers are the orange ones, which she has sold four of, but pink is a close second. Her personal favorite, however, is purple.

One of Emma's surprise business lessons has been that price isn't the only thing that affects whether or not the scrunchies sell - it's also the color.

"We found that people are willing to pay a little extra if it's for a color that is popular," says Susan Lathrop. "Some of them were priced for a dollar more because of the type of yarn, but that didn't stop people from buying them."

Emma's favorite thing about Bee Beautiful, she says, is "making money," and she has learned that in order to make a good amount of it, fair pricing is key. Together with her mother and Reed, she figured out the cost of the ponytail holders and yarn, and then determined a price they would sell at but still bring in a profit.

So far, Emma has made $61 - that's roughly $1.50 she pockets each time a scrunchie sells. And how much money has the White Balcony seen from the scrunchies?

"Enough to buy a lot more Girl Scout cookies with," says Reed with a laugh.

Business is expected to expand at the start of next winter, as Reed has requested scarves to accompany the scrunchies.

"First I thought it would be difficult to compete with the scarves we already have," says Reed. "But a few people have asked me for handmade scarves, so there might be a market."

Crafty beginnings

Emma Lathrop has another key ingredient for success, too - creativity. She has been interested in arts and crafts for as long as she can remember, and she made her first quilt - for a doll - when she was only 5.

And these days, when she's not crocheting, she is working on her second quilt, this one on a larger scale. Her favorite class at school is, of course, art.

Now, her creativity is everywhere, even on the scrunchie packaging for Bee Beautiful, which she designed herself. Each scrunchie is wrapped around a hand-decorated tagboard cutout. A bumble bee buzzes around the hour-glass-shaped holder, reflecting the name of the company, which Emma chose based on a nickname.

"My aunt calls me 'Emma B., Bumble Bee' 'cause my middle name starts with a 'B,'" she says.

The packaging is a key marketing tool, the Lathrops and Reed have found, and the ultimate design is one that can be hung on a display rack if necessary, or laid out in a trunk, as the scrunchies currently are.

But maybe the most key marketing tool of all lies in the words on the package: "Made by Emma B., age 9."