LILLA P: Rethinking direction and business strategy

This month we have been profiling Pauline Nakios of LillaP. We have talked about feeling like a real business, demanding to be treated like a client, and building a business that allows you to focus on what you love.

When we spoke to Pauline, we asked about business directions that have changed over time. Pauline had a wonderful example of a strategic direction LillaP pursued and then decided it was not the right direction for the company. The majority of LillaP's customers are small boutiques throughout the country.

Pauline has direct contact with many of the store owners, managers and buyers and has a keen sense of the individual boutiques clientele. For example, Pauline spoke about how brighter colors from her collection are more popular in the south. In NYC and LA many of the boutiques sell tons of basics like black, white and navy. These boutiques have loyal client followings and each store proprietor knows a lot about their specific customers likes and dislikes.

Several years into the business, LillaP was approached by Bloomingdales. This was an exciting opportunity for LillaP as a goal of the company was to sell to large retailers. Initially, they felt there were many potential benefits in landing an account with such a big retailer who obviously had strong brand recognition and deep pockets to place a large order.

On the other hand, Pauline learned that corporate retailers have lots of requirements, (such as specific packaging) that smaller boutiques do not find necessary. What made it most challenging was the lack of direct contact with the person who was selling the product. Unlike her direct connection to a store owner, Pauline found it difficult to establish a relationship to the numerous sales people at all of the various store locations.

When she visited the NYC store, she discovered that clothing was not merchandised well and many styles and colors were piled up in the stock room. Pauline realized that drawbacks of selling to a large retailer outweighed the benefits.

She decided that in the future, LillaP would not pursue larger retailers but instead would stick to selling to the customers they know and love - small boutiques!

Meet Pauline by joining us for a private talk and tour of her showroom on May 26th from 3-5pm.


- posted by Amy Abrams

Special LILLA P discount for IGC Community!

Pauline, owner of Lilla P, who we have been featuring all month through our inFOUCS program has generously offered all IGCers 20% off your entire purchase for the next 2 weeks!!

To redeem please enter IGC20 at checkout on http://www.llillap.com/ (valid from 5/17 - 5/31)

Also, we hope you are planning to join us at the private tour and talk at Pauline's showroom in the meatpacking district next Wednesday, May 26th from 3-5pm. to rsvp please send an email to us at igcrsvp@gmail.com with LILLA P in the subject.

In the meantime, catch up on some of the LILLA P conversation we've been having on the blog:

When it's hard to feel like a real business

Demand to be treated like a client

Building a team, business, and brand that allows you to focus on what you love

Happy Shopping!

LILLA P: When it is hard to feel like a "real" business

This month we have been featuring parts of our conversation with Pauline Nakios of LILLA P. (Catch up on posts here and here and join us for the end-of-the-month event!)

One thing Pauline, Amy & I talked about was the psychological safety net that business owners sometimes give themselves at the beginning of a new venture.

Sometimes people feel that if they act like their new business is not real or at least not a real business then they can’t really fail. Instead, they think if they are just sort-of trying something then they can also just sort-of stop doing it when they want without feeling badly about it.

Pauline shared that she felt this way when she started more than 10 years ago. She said that if she believed that she was “not a real business” then it wasn’t a big deal, but once she proclaimed her legitimacy and that she was really trying her hand at entrepreneurship then she had a lot more to lose.

We have talked about this phenomenon – The Impostor Complex - before.
It is challenging to assume and own a new identity. Once you claim that you are doing something or want something then, of course, it means more when you don’t get it. However, I would also argue that if you don’t claim it you are more likely to not get what you want. After all, our businesses are reflections of what we make them.

Most everyone who knows us knows that we are big fans of ventures of all shapes, sizes, and intents. And it shouldn’t be surprising that we believe that if you don’t take yourself seriously for your efforts – whatever they are – then you’re unlikely to get any serious rewards. Why? Well you’re unlikely to treat your venture or yourself with the same level of respect & you’re unlikely to convince others (customers, vendors, partners, etc.) that you’re doing something worthwhile and interesting.

However, where this whole impostor complex becomes a bit tricky and catch-22-ish is when you look at the cost of feeling like you have go into everything with a certain amount of certainty and seriousness.

It’s also true that prematurely claiming or owning something can unnecessarily tie us to experiments we’d like to abandon. And worst of all, the pressure to prematurely declare something formal may prevent us from experimenting and trying our hand at things in a more organic way.

So for the record we are fans of both experimentation AND legitimacy. And think that we’ve seen this continuum negotiated best when folks are comfortable in both roles, have clear boundaries and points of evaluation, and are articulate about their intentions.

For example, “we thought we try doing this because the climate seems right and are willing to give it a good 6 months before we evaluate whether we’d like to formalize it or move on” or “Doing XYZ has always been a passion of mine and I figure now was a good time to see if I could make a business out of it and if I even like the process of running the show. I’m planning to test it out for a few months before I decide if I really want to invest more.”

These are both clearly examples of experiments, and are quite different from legitimate ventures where people have invested a tremendous amount of time, energy, capital and resources. Where folks really seem to get stuck is moving from the “experiment phase” to the “legitimate phase”.

Some ideas on how to navigate the transition:

1. Be clear about whether something is an experiment or not…if you are seriously relying on the business revenue and viability, then it is no longer an initial experiment

2. Be very clear about what your goals and intentions are (for now). Nothing will make you feel illegitimate faster than comparing what you are doing to someone else’s goals.

3. Be respectful of the time and energy that you are investing in your venture and speak and behave in a way that demonstrates that – chances are others will follow your lead

4. And of course, as always, surround yourself with resourceful peers who are on your same wave-length and can validate your experiences as an entrepreneur!

Thanks, Pauline, for all the brain food!

- posted by Adelaide Lancaster

LILLA P: Demand to be treated like a client

During our conversations with Pauline of LILLA P, we talked a bit about what it is like to be in uncharted territory, whether that is new to business or perhaps just new to the phase you are in.

Pauline issued sage advice, which was to always demand to be treated like a client. It can be tempting to follow the lead of others when you are in the novice position, especially when dealing with vendors or in other business-to-business relationships.

Pauline recounted an experience with a manufacturer in which she let the other company drive the bus because she didn't feel experienced enough to set the terms, tone, or tenor for the relationship. She indicated that it was a big, costly learning experience for her and that since, she has always played the role of the savvy client even when the process was new to her.

Pauline's advice has sat with me since and given me reason to pause and think about the various business relationships that we have.

It is easy when starting something new to follow the path of least resistance, to rely on the more experienced people at the table, and to assume that their past experiences have generated work patterns and policies that are effective and efficient.

And, isn't tremendous when you do hire vendors that just make the whole process so easy? They effortlessly bring their expertise, experience, and systems to the table and immediately solve your pain? But the reality is, that this is a lot to expect and taken with Pauline's advice, I have a feeling that this kind of assumption can really set everyone up for failure and disappointment. It is just too simple to be steamrolled by a process that you don't understand and that may not work for you.

Better to evaluate each relationship, recognize when you are the client, and insist on being treated as such.

Of course, the shoe fits on both feet. It is also important to recognize when you are not the client and to learn to treat the other party accordingly.

-posted by Adelaide Lancaster

LILLA P: Building a team, business, and brand that allows you to focus on what you love

This month our inFOCUS business is LILLA P and the woman behind the brand, Pauline Nakios. Pauline is just delicious and we have so enjoyed learning about her business.

LILLA P celebrates the t-shirt and is designed for both the modern lifestyle and aesthetic. The collection, which is known for being easy and comfortable, provides women with beautiful colors, fabrics, and styles and quickly converts new customers into loyal followers.

One of the things that stuck out to us most about Pauline and LILLA P is the extraordinary journey she has been on and how through the many tweaks and advancements, Pauline has gone from juggling almost everything that needed doing to carving out the role that she loves the best and focusing on her strengths, which might be different that what you would expect from a fashion brand such as LILLA P.

In the early days, Pauline ran LILLA P out of her garage fulfilling each order herself and getting her hands dirty in every aspect of the business. Now she has a staff and partner (her husband) all of which allow her to play the role of creative director and focus on what she loves which is continuing to craft the brand, interact with the market, sales representatives, and customers.

Pauline’s efforts to remain connected to the customer show in how relatable and authentic her company and brand are. And, it should come as no surprise to those familiar with the gorgeous and flexible clothing that the LILLA P line is inspired by Pauline’s grandmother.

We found it so refreshing that Pauline has been able to achieve such success with LILLA P without being overly schooled in fashion or design and without being on the technical side of the business. She has truly been able to craft and deliver a vision leveraging her own strengths as well as the talents of the people around her.

A very interesting model and example for us all to consider!

Meet Pauline and the LILLA P brand and go behind the scenes at her showroom on May 26th.

Save the Date - Field Trip to LILLA P showroom May 26th 3-5pm

We have wrapped up yet another interesting month of inFOCUS.

So far we have taken a behind-the-scenes in-depth look at Selia Yang, Meredith Barnett, and Bottlerocket.

Next up?

Pauline Nakios of LILLA P.

For more than a decade, New York based fashion line LILLA P has developed a coveted market niche by taking fashion’s most iconic creation, the classic cotton tee shirt, and flirting with its styling, construction, and fit. Built around a modern rethinking of that iconic silhouette, Lilla P has grown into a busy Meatpacking District design studio with a devoted retail following for expertly tailored knitwear.

Both hilarious and sharp - Pauline is not to be missed!

Join us for a private gathering at her showroom. Pauline will be talking about her story, the brand, its history and future, and lessons learned along the way.

WHEN: May 26th, 3-5pm
WHERE: LILLA P showroom - address will be provided
RSVP: igcrsvp@gmail.com

In the meantime, you can follow them on Facebook and watch our blog for snippets of our conversations with Pauline.

Bottlerocket: Part 3, chief cook and bottle washer

Another installment for our inFOCUS Bottlerocket series!

In addition to our introduction to Bottlerocket, we have talked about the back story and how Tom went about tackling the problem he wanted to solve.

We then turned our attention to one of our favorite topics: role.

We are always curious about how entrepreneurs choose to spend their time. What responsibilities do they give themselves? What is their job description? We asked Tom about his role at Bottlerocket:

"The entrepreneur's job is always 'chief cook and bottlewasher.'

In the beginning, all of the forward momentum of the business had to come from me. I had the idea, the vision and the desire. But I also had to learn a new business from scratch, and move a lot of balls forward simultaneously. Before you open any new business, you have legal issues, branding issues, real estate, software and systems, and a host of other challenges. It's a steep learning curve for most entrepreneurs at this early stage.

After the door was opened, in addition to selling wine to new customers and making sure their experience was excellent, I then had to focus on creating systems and procedures to make our business run smoothly, efficiently and excellently. I have been extremely fortunate to work with a very talented team, both outside experts and staff, who have helped me take everything that we do to a higher level. But this work continues nearly four years later. There are always ways for us to improve our business. And there will always be new opportunities to be identified and captured.

Today, in addition to hiring, training, paying bills, dealing with whatever the fates may deliver in a particular day, constantly revising our strategy and operations, and the seven thousand other jobs I juggle, I am focusing on expanding our operation to new locations.

The adventure continues!"

To find out where Bottlerocket is heading, join us on Wednesday evening for a special IGC talk, tasting and tour.

Bottlerocket: Part 2, Tackling the problem

In our month-long introduction to Bottlerocket, we last left off as Tom decided to figure out a model that would fundamentally change the wine shopping experience, instead of just creating an alternative that he liked better.

We asked Tom about how he approached this challenge and what solutions he came up with. Here is some of what he shared:

“Businesses talk about being ‘customer focused’. But what does that really mean? Bottlerocket's model grew from a serious look at the pain that consumers feel when they buy wine. As a product category, wine is challenging. There are many regions, grapes, styles and vintages for the consumer to consider. And it is not cheap! Each purchase represents a financial risk. With all of these unknowns, how can a smart, thoughtful buyer make the optimal choice?

Bottlerocket's answer was to dig deep into decision science. How do we make decisions? And what do we need to optimize our personal choices with such a multitude of choice?

The first challenge for buyers is the sheer number of bottles. It can be completely overwhelming. And while there is definitely such a thing as too little choice, it turns out that in the "paradox of choice," there is also such a thing as too much. Bottlerocket's model constrains itself to 365 wines, one for each day of the year. Enough choice to cover the world of wine and a range of price points, but deliberately curated to keep the experience from being overwhelming. (read more about the importance of curating)

The second big issue in decision making is access to good information. Common among traditional wine shops is a wall of wine with nothing but a price tag as a data point. Bottlerocket goes deep and presents a wide range of information, ranging from detailed tasting notes, food pairing recommendations, critics’ ratings and the story behind the wine. This commonly formatted résumé is placed next to each wine where it sits on the shelf. Curious consumers can learn as much as is practical about each wine, short of actually tasting it.

The third big resource required to make a sound decision is context. The traditional organizational principle in retail wine businesses is region: France, Italy, Spain, etc. This is as logical as a Dewey-Decimal System for wine, but it does not necessarily speak intuitively to wine buyers. Consumers do, however, know why they need wine. They know what they are cooking for dinner that night, or to whom they intend to give a gift bottle.

Bottlerocket, in addition to the traditional method, presents its wines on islands that are organized by context, such as: Meat (Beef, Pork, Lamb, or Game); Take-Out (Japanese, Chinese, Indian, Pizza, etc.); Gifts (Someone You Barely Know, An Old Friend, Third Date, or The Boss.) Organizing wine around what a person already knows focuses that person on a small number of good and appropriate choices rather than an entire wall of wine.

Finally, the environment is important. Stress contributes to the challenge of making great decisions. Feeling judged, or unwelcome or just plain uncomfortable are huge hurdles to success. Bottlerocket is cheerfully lit, has a children's play area so parents can relax and enjoy themselves, is dog-friendly so people walking their pooches will know they are welcome, has fun and eclectic music to add whimsy, and is designed from green, unpretentious materials that all combine to say ‘come in and relax’.

Navigating a manageable number of wines, accompanied by excellent information, organized by need and by region, all in a comfortable, fun environment is Bottlerocket's recipe for the 'best wine buying experience on the planet'."

What’s more, Bottlerocket aims to please even after you’ve left the store!

Tom highlighted one more reason for the pain wine buyers feel. In addition to being a complicated product, consumers are also challenged by a lack of confidence. He believes that “this is only an issue of education and experience”.

The solution? Take-home information and 'bottlenotes'.

Tom says that, “While formal classes are valuable, and Bottlerocket offers a wide range, real wine education happens every time a person opens a bottle and takes a sip. So Bottlerocket puts a copy of each wine's note in the bag when a customer checks out. This information helps customers make better choices in the store, but it also provides a bite sized piece of wine education in the moment of consumption. Brick by brick, taste by taste, Bottlerocket is providing its customers a seemless track to becoming a confident, knowledgeable consumer.”

Get a chance to experience the Bottlerocket methodology first-hand at our upcoming taste, talk, & tour event on April 21st.

BottleRocket: Part 1, the back story

Tom Geniesse, owner of BottleRocket, began his career in the entertainment world, which he believes is at heart an entrepreneurial experience and process. With each new project you are always starting from scratch and your task is to bring an idea to fruition. To do so you not only have a compelling idea, you have to execute by strategically enlisting lots of key people, finding seed money, building a platform, generating buzz and support, and cultivating a following.

So during the dotcom boom it was fairly comfortable to move from the entertainment industry into a fast-growing tech startup. Tom’s first business was founded with partners and was essentially an online portal that made it possible to access high-quality educational information and lectures anywhere. The virtual educational platform was intended to help connect the woman in Wichita with the professor at Harvard. The business was eventually acquired but not before it grew to employ several hundred people.

Through this venture Tom rode the dotcom wave and learned a lot about entrepreneurship and startups. Fundamentally, Tom believes that an entrepreneur’s value is to solve problems.

And it wasn’t long before he spotted a problem that he wanted to solve. As a burgeoning wine drinker, Tom found it really difficult to interact with wine clerks and stores in an effort to learn more about his purchases. He was really trying to teach himself about the wine world and kept getting frustrated that merchants really didn’t make the process any easier.

Each bad experience left him questioning how things could be better set up. How could these stores make it easier for folks like him to learn and make more informed purchases?

Tom knew that it is easy to critique existing options but that it is much harder to create something that actually does a better job.

So right from the beginning, he really challenged himself. Instead of just creating an alternative that he would like better, he wanted to know if he could figure out a model that would fundamentally change the wine shopping experience.

And thus the research and brainstorming and collaborations began…!
(more about BottleRocket and Tom’s story to come in April’s inFOCUS series).

Experience BottleRocket firsthand and meet the man behind the business at our April 21st talk, taksing, and tour.

Introducing BottleRocket: Our April inFOCUS business

We are so excited to kick off April with a new inFOCUS business - BottleRocket, a wine shop just south of us in the Flatiron district.

BottleRocket is the brainchild of owner Tom Geniesse who has been an entrepreneur several times over. Like many businesses, BottleRocket was born out of frustration with the existing options.

Several years ago Tom decided to learn about wine and was shocked that wine stores were engineered in such an uneducational, unfriendly, and intimidating way!

For those you have visited BottleRocket you will know that the store is shockingly approachable, friendly, and chock full of personality. From the innovative "themed" kiosks, to the take-home educational bottle notes, to Otis the yellow lab store mascot, this wine store is nothing like the traditional experience.

What's so cool about BottleRocket is to see how all these experimental elements have really come together to fundamentally change the way in which people experience and interact with wine.

We have long loved BottleRocket and are thrilled to get more of an "inside peek" at the business over the next month. We will get to learn more about its roots, future, owner, and ingenious system.

There are lots of customer service, marketing, and value proposition lessons to be learned here!

We are, of course, also excited about our April event with Tom - a talk, tour, and wine tasting at BottleRocket on April 21st!

It is a fantastic way to celebrate spring, learn and mingle with fellow IGCers! Because of the tasting experience, attendance will be limited, so please reserve your space.

April inFOCUS event: Wine and conversation with BottleRocket

With April comes a new inFOCUS business! We had a great time with Meredith Barnett of The Inside Source and StoreAdore last month and this month are excited to be featuring BottleRocket.

BottleRocket has effectively changed the experience of shopping for and learning about wine with their innovative store layout, friendly and knowledgeable staff members, integrated educational approach, and outstanding customer service.

Starting April 1st we will be posting a series of excerpts from our conversations with Tom Geniesse, founder and business creative extraordinaire!

As always, we will round out the month with a private gathering and "behind the scenes" peek at the featured business.

On April 21st, BottleRocket has graciously invited IGC members to join them for a tasting, tour, and talk.

It is a great way to kick off spring with your IGC companions!

WHERE: BottleRocket 5 West 19th Street (b/w 5th/6th avenues)
WHEN: April 21st, 5:30-7:30pm
RSVP: Pls send an email to igcrsvp@gmail.com with BOTTLEROCKET in the subject

See you there!

Editorializing the Customer Experience: Some service business examples

We’ve been talking a lot about “Editorializing the Retail Experience” after our interview with Meredith Barnett.

Meredith talks about this important strategy as a way to strengthen affinity and loyalty amongst your customers.

We provided some other examples of businesses (aside from The Inside Source) that employ this strategy last week from a product/retail perspective.

We also wanted to share 2 examples of services businesses who take a similar approach.

The ever so talented dog photographer Erin Vey not only provides gorgeous imagery for her followers and clients through her site and blog, she also demystifies the photography experience and provides lots of education for novices who want to take better pictures on their own.

For example, here she shows how she got this terrific shot of my friend Katie and her fabulous dog Hank.

Another woman who creates a fantastic online editorial environment for her service business, is interior designer Kelly Galvin Robson. Her blog, High Street Market and curated Etsy shop of vintage finds both provide interesting, editorial, interactive ways for those interested in her design services and style to create a connection.

FOOD FOR THOUGHT:

* As a service business, what editorial tactics can you employ to increase not only customer stickiness but also your profile in the industry?

* What kind of curated experience can you create for your customers and potential customers?

The Inside Source Profiles My Personal Heroes

(eBay finds selected by Christiane Lemieux of Dwell Studio)











We’ve had so much fun profiling Meredith Barnett, editorial director of The Inside Source, this month! In addition from learn more about Meredith and her talents, we’ve spent tons of time on TIS and trolling eBay for fantastic finds. The TIS weekly email has quickly become one of my favorite subscriptions.

I have also been so impressed by the quality of the editorial pieces and excited by how many of my own personal heroes have been profiled on the TIS site.

I wanted to share a few of these rocking women with you, in case you are not already familiar with them!

Barbara Lynch Gruppo, amazing chef, restaurateur, and entrepreneur

Michelle Adams of Rubie Green and Lonny Mag

Christiane Lemieux of Dwell Studio

And a newer favorite duo Amanda Hesser and Merrill Stubbs of Food52

We are so excited to meet the woman who makes TIS what it is next Wednesday at the Ladies Lunch at IGC!

New Adventures in Publishing: The importance of niche, reach, and creative advertising relationships

(Vintage Chocolate Advertising Poster from eBay)







Another interesting installment in our inFOCUS series with Meredith Barnett! So far we've learned about her role at TIS, detailed why she is really quite unique, and discussed the importance of 'editorializing the retail experience'. Meet Meredith at an end-of-the-month Ladies Lunch on March 24th.

Today we are talking about new publishing platforms and advertising trends.


How does the Inside Source fit in with other media, publishing, and retail trends?

As traditional media undergoes a major transformation (and let's face it--a shrinking--think of all of your favorite magazines that have folded in the past year!) the door has opened for a new class of publishers to emerge. At the same time, many non-media companies are taking their consumer messaging into their own hands and going directly to the consumer. Given the passionate community around the eBay brand as well as the insights gleaned from the company's shoppers, eBay is in a natural position to take this next step.

Further, because eBay is essentially product agnostic (it's not trying to get rid of inventory or push one brand over another), it's also perhaps a more reliable media source than traditional retailers who might put out catalog-like magazines in a similar vein.

What do you expect to happen in the media and publishing world over the next few years? What can we expect?

The million dollar question! There is a fundamental business model problem in media right now: Advertising is falling tremendously, yet beautiful glossy magazines and TV dramas are expensive to produce. Online advertising is much less expensive, but the quality of the content is often not up to par. These days, anyone can be a producer of content. This is a great thing in many ways, but it also means that it's harder to sift through the rubble for the consumer--and the advertiser (which already has less money to spend) has to make its dollars go even further.

I don't know what the answer is, but I do think we can expect more advertising to move online. Also, as technology develops (first online and soon after on television) that allows advertisers to target specific users based on their past viewing/browsing behavior, publishers will be able to squeeze more out of their advertisers.

What advice do you have for small business owners like us when it comes to media, publishing, and online buzz?

Don't underestimate how large you have to be to make money on the internet through advertising. There are very low barriers to entry to starting a website, which means anyone can do it--and there is a lot of competition out there. For the most part, you have to be huge (at least 1m uniques/month--maybe more) to get real advertisers on your site. You can get google ads and sign up for an ad network, but you won't make much money that way--just pocket change.

You should think about other ways to partner with potential advertisers--perhaps by integrating them cleverly with your content. Or build a very targeted site with a specific advertiser base that wants to reach your audience.

Of course sometimes, a in the case of The Inside Source, a website (or other media entity) is not always about driving direct revenue to a company. Sometimes, it is more about changing brand perception or promoting a particular program. It’s just important to be clear on your goals—and expectations—when you go down the publishing road.

As far as gaining a following...it you build it, they won't necessarily come! So think carefully about your online marketing strategy before you launch.


Thanks, Meredith!