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FEATURED MOM INVENTORS > SERENA & LILY
Featured Moms make philanthropy a major focus of doing business
Lily Kanter was the owner of a baby boutique when a chance meeting brought her together with Serena Dugan, a textile designer and artist, in 2003. Eight months later, they released their first nursery collections - beautiful designs that combine simplicity and sophistication for today's households. Since then, their offerings have grown significantly, and they've become the bedding provider of choice among the celebrity set, including Jennifer Garner, Britney Spears and Elizabeth Vargas. Fueling their passion in the for-profit world is the desire to give back to those less fortunate, which is why 5% of company profits go to organizations that serve underprivileged and at-risk women and children. They also recently aligned with Baby Buggy, a charitable venture founded by Jessica Seinfeld, wife of Jerry Seinfeld (find out more about their philanthropic efforts at www.serenaandlily.com). Here is their full story: Describe your company and your product (or product line). Serena & Lily seeks to be the aspirational leader and style authority in children's home furnishings. Our dedication to exquisite quality and timeless design completes the nursery, bedroom and family spaces of the American home. Why did you start this company and when? I started the company because there was a void in the market for high design crib linens. I couldn't find any linens that I could get really excited about and when I met Serena and saw her textile designs, I realized we had an opportunity to innovate the crib linen business. What were your initial goals? Our initial goals were to build a brand around the Nursery. The serious goal that got me back into the for-profit world was to fund my deep passion in the "social change" world. Realizing that it takes money to fuel my philanthropic interests, one of my goals became to start a profitable company. 
Describe yourself and your family. What is your background and how does it relate to your company?
I would say having a family in 2001 inspired me to get into the children's product industry, which is when I started Mill Valley Baby and Kids (her baby boutique). Now I have 3 children, which helps me to understand what the needs are in the industry. Have you ever experienced an epiphany that changed the direction of your life? I would say focusing on the pleasures of the soul, and differentiating that you are a body and a soul was a type of epiphany for me. Once you focus more on your soul and less on the material (physical) world, you'll have a more fulfilling life. That really manifested itself in having children and getting involved philanthropically. What process did you follow to develop your first products? Our initial process of product development were the design boards created by Serena. We didn't cut any corners on brand creation and marketing inspiration. What process did you follow to determine your product's marketability? Honestly, gut. I took the gut route for this one. And I had hands-on knowledge of the customer from working in the children's market. What process did you follow to find a manufacturer? My Rolodex, contacts I know, research on the Internet. It was mostly the people we knew and extensive Internet research. 
Were there any setbacks in product development that had to be overcome?
There have been a lot of hard lessons in product development. We continue to improve and get smarter, but it's a lifelong journey in a company. There seems to be a learning curve with every introduction of a new product. What was the biggest learning curve in terms of developing your product? Packaging. Packaging has to be thought out as much as the product. The most painful of the learning curves was packaging. It is an integral part of the design process and cannot be an afterthought. Through what markets are you selling? We are using a multi-channel sales strategy with our products. We sell to retailers, designers, and direct to consumers through the Internet and our catalogue. What secrets have you learned in terms of publicity and marketing your product? Hollywood matters. And it's not necessarily because people want to have what a star has...it's because it puts the brand out there in a way that would cost you millions of dollars in advertising otherwise. What was the biggest learning curve in terms of marketing your product? I think the learning curve with marketing is to make sure your operation and infrastructure can support your marketing efforts. If it can't, your marketing efforts are a waste of money and you run the risk of damaging your brand if you can't deliver. 
How did celebrities like Jennifer Garner and Elizabeth Vargas come to your products?
Jennifer Garner came through a friend of a friend who saw the catalogue. Elizabeth Vargas came via knowing the brand. Please tell me a little bit about your philanthropic efforts - and why these are important to you. My philanthropic efforts focus on grass roots opportunities where you can have the biggest bang for the buck, in terms of changing one's life for the positive. I'm committed to venture philanthropy, where you are investing for results. All the work that I do supports social change makers, the people who are passionate about what they're doing, rather than the large non-profit organizations. How long did it take to get your products from idea to market? I would say 9 months. How have you managed to juggle the roles of business owner and mom? What falls by the wayside? Any personal time, workouts, shopping, anything having to do with myself is gone. I no longer exist in the picture. My children, my husband and the company are all I have time for. What kind of support system do you have in place personally and professionally? I have 2 full time nannies who are like family members who have been with me for 5 years, they're secondary moms. Our hopes are that they will be with us until the children are old enough to not need someone watching them. My husband also helps tremendously to fill the gap. Spiritual practice is front and center in our lives. It's important for grounding and to keep things in perspective and keep the priorities straight. You can easily get gobbled up in the daily minutia. And beginning at 5pm on Friday night until Monday morning, our time is 100% devoted to the family with no exceptions, not even email. How did you finance your business (personal contributions, loans from friends & family, loans from bank, credit cards, outside investors?). Initially the financing was completely private until we exhausted all personal savings, and refinance on the houses. Then we did a friends and family round of investment. 
What is your company's current financial picture and what are your projections?
We are on track to be profitable in 2007 and we plan to double our business every year as a conservative goal. We began shipping our product in October of 2004 and since then we have been doubling our revenue each year. It's taken us roughly three years to become profitable. What has been your greatest success or "high point" in the process? I would say building an incredible team of employees. I couldn't be more excited about the team - the community of people we've organized is really exciting. Being a recognized design leader in the industry has also been a major high point in the process. Have you experienced a "low point" and if so, how did you rally yourself to get back on track? Our business has a natural low point in the 4th quarter of every year. Most companies do really well during the holiday season, but the home furnishings market really dips in November and December. You wonder "Are we finished, are we done?" but in January, everything triples. We are gearing up to create giftable accessories to fill that gap during the holidays. Who has been your biggest source of inspiration? What keeps you going? I would say for me it's my parents, my mom and my dad. And my goal is to be very philanthropic so that inspires me to be successful, so I can do good with the money I make and financially reward the employees who contribute to make it a success. I see people like Bill and Melinda Gates and they are in an enviable position - they are going to have a major positive impact on the world. Did anyone in particular help you along the way? My husband. His time commitment to our children allows me to be able to do what I do. I would also say my mom and dad, who gave me the encouragement to let me know I could do whatever I set out to do. Lastly, I want to acknowledge my former employer Microsoft. The experience of working for an extremely well run company gave me important insights now that I run my own company. Being at Microsoft also helped me have the financial wherewithal to have start-up capital. 
What advice would you offer other moms developing their products/ideas?
Be well funded. Seriously. It's hard to do something on a shoestring budget. In order to do it right you need money. A very synergetic partnership is key. Serena oversees the design and the brand and I oversee the business and operations. How would one mom do it by herself? It is so crucial to find the right partner because it's an invaluable relationship. Find a partner who you can marry, because it truly is a marriage. Is there a resource that proved to be invaluable that you would like to share with other moms? I think it's about your social network. Your social network is the most powerful resource you have. Is there anything else you would like to add? I would say that the best thing about having my own business and family is the ultimate flexibility that comes with that. Whenever I need to do something with my children, I don't have to ask anyone for permission, or ever get roped into any travel that takes me away from my family. That's what I love the most. If I want to have an ice cream social on a Thursday afternoon at the office and invite my kids, I can. That is the greatest thing about not working in corporate America. I also enjoy creating an environment where my employees with children feel they're free to do things with their family, that they're not handcuffed to their desk. They know they can schedule their day however they need to accommodate their children. It's about getting the job accomplished and not about being at your desk on some schedule. | ||||||
