Roxanne Quimby Case
Zacharakis
Roxanne Quimby Epilogue
1998 $8 mm rev.
35% pre-tax income
massive product turnover - all skin care products
20 employees
3000 stores
Bought Burt out in 1999, he stays on as
spokesman
2001 $21M -- 32M rev; 120 person plant
Zacharakis
Patricia
Cloherty
Zacharakis
Patricoff and Company
Benefits of Lifestyle Firms
Need fewer resources – bootstrapping
Greater control over operation
•
•
Fewer employees
Fewer investors; probably no active investors
Can adapt business model based upon
market reaction – fewer fixed costs
Zacharakis
Benefits of HPV
Greater interest from professional equity
investors
Smaller equity position, but greater reward
• Small piece of a large pie
Create legacy
• Generate jobs
• Generate wealth to yourself, employees,
investors, other stakeholders and community
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Organic Growth
Quimby saw an opportunity to “grow her
baby.”
Not serendipity, but a vision that evolves
Take steps early on to keep “options” open
• Lay groundwork (build network)
• Establish model that is replicable
• Record of success to show future stakeholders
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Growth
Executive Limit
Time
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Executive Limit Symptoms
Entrepreneurs have a difficult time
managing on-going organizations
Transition is most difficult during the high
growth phase
Failure to replace entrepreneur can lead to
venture failure
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Who is most susceptible
Dogmatic authoritarians
Lack management experience
Engineer/technician
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How did Roxanne Manage
Transition?
Lives in NYC
Backfilled talented executives – she is not
involved in day-to-day
Hit $56M in 2003 sales
Sold for $180M in late 2003
Retain minority shares
Employment contract as consultant for up to 2
years
Considering a run for Governor of Maine
Zacharakis