This story appears in the August issue of Utah Business. Subscribe.
Once a month, Utah Business hosts Founder Friday, a free event sponsored by BONCO, Kiln and KaJae that showcases the wisdom of Utah-based founders. In July, Kiln hosted the conversation between Utah Business Editor Mekenna Malan and LitJoy Crate co-founders Alix Lewis Burrows and Kelly Dearth. Here’s what you missed.
1. Keep the focus on your community.
In 2006, Dearth began curating elaborate book club parties with themed menus, house-transforming decor and even visits from that month’s author. Burrows attended the club for about a year before Dearth pitched Burrows on expanding the club as a subscription box.
Now an almost eight-figure business, Burrows and Dearth started LitJoy Crate with only $1,000 of initial capital. Their focus on community helped guide their financial strategy.
“We quickly realized we did not want to [cut corners] on anything when it came to the customer experience.” Dearth says. “We wanted to make sure that everything … was a beautiful experience from the very first crate.”
With branded boxes, personalized Polaroid photos of the founders, and lots of time spent connecting with readers online, Burrows’ and Dearth’s dedication to cultivating a community is an investment they don’t regret.
2. Follow your intuition.
When diving headfirst into their new venture, Dearth described a “champagne-y feeling of energy.” Burrows recalls feeling a “full-body yes.” The co-founders immediately clicked with each other and Dearth’s business idea on January 30, 2016.
“We had a business license by February 5, … a launch party on March 30, … and then we shipped our first product May 15,” Burrows says.
While they don’t recommend the fast timeline, Burrows and Dearth are shining examples of rising to the occasion when an opportunity resonates with your soul.
3. Hire people whose strengths are your weaknesses.
After prioritizing the customer experience, there were few funds left for hiring employees, Dearth says.
“The first person we brought on was a friend, and we always teased that we paid them in cookies and lots of love,” she continues.
When funds allowed for — and necessity demanded — more employees, Dearth says they followed this advice: “Hire those people that do the thing that you hate doing or you’re not good at.”
4. Be ready for 100 no’s.
When Burrows and Dearth first began creating special edition books, they used novels in the public domain. To redesign contemporary books, however, they needed to get sublicenses from literary agencies and publishing houses. This was not something easily done.
“I’m a big believer in this principle of 100 no’s,” Burrows explains, recalling how she was able to pitch publisher after publisher on the idea of special editions. “If I can convince myself I have the emotional stamina to hear ‘no’ 100 times, there will be at least one ‘yes.’”
LitJoy Crate now works with all the “big five” publishers and several large literary agencies to create special edition books.
5. Collaborate closely with your executive team.
Co-founders, best friends, work wives. Burrows and Dearth realize their division of duties is not the norm, but they wouldn’t have it any other way.
“We literally date each other because we have to stay very close in alignment to make sure that what we are telling our employees is on the same page,” Dearth says.
Co-CEOs are rare, but Dearth says sharing the role is becoming more common. “It is the best thing to know that I have a partner who can pick up the slack if something happens in my life or vice versa,” she says. “Together, we can come up with solutions.”