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By Aliza P. Sherman
The legend of Lillian Vernon goes back to when, prior to the onset of World War II, when Vernon and her parents fled Germany, finally settling in New York City. In 1951, Vernon started her company on her kitchen table with the $2,000 she had received as wedding gift money. To say her home-based business has grown to become a successful enterprise is an understatement. In 2002, her company received more than 3.7 million orders, and sales have grown to more than $238 million a year.
Enterprising Women: What prompted you to start your business with your wedding gift money? How did you start?
Lillian Vernon: I had a lot of energy and ideas, and I felt that in addition to being a wife and mother, I had so much more to offer. Therefore, I decided to start a very small business out of my home, using my kitchen table as my office so I could still take care of my family, yet follow my dream. My father was my inspiration and mentor. He had a small leather goods company, and I used to assist him in coming up with designs for his product line. I designed the handbag and belt that I used as my first products in 1951, and my father manufactured and sold them to me.
EW: How have you seen the status of women businessowners change since you first started your business?
Vernon: In the 1950s, I could not get a bank loan. I had to use my war bonds as collateral. Major changes have improved access to credit and loans.
EW: What barriers did you face early on when starting your business?
Vernon: Suppliers would not extend me credit. They didn’t take me seriously, since I was a woman. But, I never let the naysayers and doubters defeat or discourage me. I just plunged ahead.
EW: Have you ever encountered blatant sexism in business?
Vernon: At trade shows, I was ignored in most booths. Male buyers received all the attention. When suppliers would visit my office, they assumed I was the secretary, and they asked to be taken to my boss. Suppliers would frequently say to me, “I hope you girls know what you’re doing.”
EW: How did those situations make you feel?
Vernon: It was hurtful and annoying. It was important for me to be taken seriously. I had a great concept, and I wanted others to share my enthusiasm.
EW: Did you ever do anything to draw more attention to yourself (at tradeshows)?
Vernon: It seems as soon as you let people know that you’re the one making the decisions, you have instant, albeit tenuous, credibility. I was not going to allow my being a woman to be an obstacle to growing my business. I never hesitated to let anyone — men or women — know that I was in charge.
EW: When suppliers asked you to be taken to your boss, what did you say in reply?
Vernon: Suppliers would make that mistake a lot. It made me angry that they were so quick to assume I was the secretary or subordinate. To avoid any misconception, I would beat them to the punch and introduce myself and my position before they had a chance to make any comment. Even though I intellectually knew the comment wasn’t made intentionally to hurt my feelings, it was, nonetheless, disappointing. Just when you think things are starting to change for the better, backwards comments take us back a few steps.
EW: What was a low point in your company when you feared you wouldn’t make it?
Vernon: During the 1980s, we were experiencing explosive growth, but we did not have the proper systems in place to handle it, which almost overwhelmed the business. We simply could not keep up with the demand for our products. We had a huge backlog of unshipped orders. It was the one time where we were in danger of going into bankruptcy, but luckily, I secured a last-minute loan from my bank, and we worked 24 hours a day, seven days a week, to ship out our customer orders in time for the Christmas holidays.
EW: What was a major turning point in your company?
Vernon: The one most important turning point for my business was in 1970, when we reached our first $1 million in sales. Another turning point was when we went public in 1987, listing on the American Stock Exchange.
EW: What advice would you give to women who are facing business challenges due to current events, the economy, and other things beyond their control?
Vernon: Never give up. Have faith in yourself. Surround yourself with positive people to encourage you and the best talent you can afford.
EW: What advice would you give to women who are thinking about starting a business today?
Vernon: Work for a similar company first to learn all you can before starting out on your own. Use valuable resources like the SBA (www.sba.gov) and SCORE (www.score.org), which offer free and helpful advice.
EW: What are some of the lessons you’ve learned about business since you first started your company?
Vernon: You must have a vision and passion. You must persevere. You must be optimistic, and you must never give up.
ALIZA P. SHERMAN is a World Wide Web pioneer, online marketing expert, published author, international speaker and regular contributor to national magazines and Web sites. Her Laramie, WY, consulting business, BigHornMarketing.com, offers Web strategy and Web site analysis. She can be contacted at 307-631-8539 (e-mail: biz@mediaegg.com).
(This article is reprinted from the Winter 2005 edition of Enterprising Women magazine. Copyright 2005 Enterprising Women Inc. Reproduction in whole or part is prohibited, except by express permission of the publisher.)
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