THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, October 16, 1995 TAG: 9510140217
SECTION: BUSINESS WEEKLY PAGE: 05 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, BUSINESS WEEKLY
LENGTH: Medium: 65 lines
Lillian Vernon, who saw her catalog company's sales soar past $200 million last year, encouraged students at Old Dominion University to ``dare to be different'' and enjoy business, instead of simply striving for perfection and the best grades.
``I would not like to see that creeping into business . . . and creeping into the schools,'' said Vernon, chairman and chief executive officer of New Rochelle, N.Y.-based Lillian Vernon Corp.
Vernon, who spoke at the Norfolk school last week, told students they should always be willing to take risks. Those measures have allowed her to fight faster in an increasingly competitive market. Her products, for example, might get into the market faster than her competitors because she relies more on instinct than research.
``I make quick decisions,'' said Vernon, known for her blunt and sometimes intimidating manner. ``I take chances, relying on what I consider my golden gut . . . I try to keep my catalogs creative, giving my customers the proverbial offer they can't refuse.''
The company, however, has not been without its growing pains. In 1970, Vernon woke up to discover that she was swamped in work. She acted quickly by hiring experienced veterans in the industry.
``I filled my ranks with managers from all different walks of life who generally were very savvy to the ways of big business - and they almost killed us,'' she said. ``They took analysis to the point of paralysis.''
Vernon said she has learned from her mistakes.
``Part of being an entrepreneur is learning from your errors,'' she said. ``My mistake was not in hiring professional managers; it was letting them work in a non-entrepreneurial fashion.''
Vernon has come along way since 1951, when she founded her business. That year, while expecting her first child, she designed a monogramed belt and purse. She placed a $495 advertisement for her personalized products in Seventeen Magazine.
They were a hit. In 12 weeks, she received $32,000 in orders.
But few people knew she had already become a shining business star. In the '50s, it was still considered unfashionable for a woman to be running her own business.
``I was a closet worker,'' she said.
Today, Vernon runs a tight ship at her headquarters in New York and her warehouse and distribution center in Virginia Beach. The company has grown considerably, with several retail outlets and 33 catalog editions selling everything from household items to gardening products. Her business had $222.2 million in sales in the last fiscal year.
The company was on the verge of being purchased earlier this year when catalog prices and postage costs soared. The acquisition was called off and Lillian Vernon Corp.'s stock dropped. Last week, the company announced it would repurchase up to 1 million shares in common stock.
In Virginia Beach, the company is spending $37 million expanding its warehouse and distribution center. Vernon predicted that her business would continue to grow, adding more retail stores and possibly acquiring other companies over the next decade. ILLUSTRATION: Photo
Lillian Vernon
by CNB