Kay Stanley
Interviewed By: Sheridan Sechter

When Kay Stanley and partner, Curt Seymour, created a scrapbooking product and manufactured it out of their basement in 1996, they had no idea that they would found a company or that it would quickly grow to become one of the most innovative and profitable in the crafts industry. Last year, K&Company, which designs and manufactures beautiful scrapbook papers, stickers, and albums, posted sales of $45 million in 2004 and now employs 200 people.

A talented designer, Kay earned a degree in Journalism at the University of Kansas. Upon her graduation from KU in 1986, Kay worked for several advertising agencies in Kansas City where she earned more than fifty awards for creative excellence.

Having outgrown their 150,000 square foot space in Parkville, K&Company is in the process of moving their offices and warehouse to nearby Tiffany Springs. The company now has approximately 5,000 independent gift, scrapbook, craft and photo retail store customers in addition to mass retailers Target and Wal-Mart. In 2003, K&Company was named to the Inc. 500 list of fastest-growing companies, and Kay was honored as the Ernst & Young Entrepreneur of the Year in that same year.

Will you please give our readers an overview of your company?
The business began out of a basement nine years ago when Curt Seymour, who is now my husband, and I created the Frame a Name idea together. We took that product to gift shows and it did very well, so that was the launch of K&Company.

Three years later, around 2000, we started to notice that there were small booths springing up at trade shows that were selling scrapbook paper, but the designs were very cutesy rather than sophisticated. So we saw an opportunity to enter the scrapbook business and create items that were more aesthetically-pleasing. And, that became our claim to fame and brought us attention very quickly.

When you and Curt created the Frame a Name product, did you have any idea at the time that this would be the beginning of an enormously successful company?
No, we didn’t have any idea. We really started this as a side business - a way to earn some extra income. And, then it just quickly took off. The decision was then made for me to quit my full-time job to focus on the design work for K&Company while he kept his job and paid the mortgage until the company grew to the point that he was able to join me full-time.

Can you give us an idea of how your company has grown since you started it?
We started with nothing, but the business has grown rapidly. When we decided to formally start the company, we got a $100,000 bank loan. Our sales increased 483% between 2001 and 2004 and we currently have nearly 200 employees. We are now in the process of moving into the sixth location we’ve had in nine years because we’re out of space again. Our current warehouse is 170 thousand square feet.

What has been your business’ biggest challenge?
Every day there are challenges. There are so many that I don’t even think of them as challenges. It’s just normal that when you’re growing, there are going to be things that come up every day that you hadn’t specifically prepared for. But, probably the most important issue we have is to recruit, hire and retain top talent. Employees are the most important part of our company. Every single person has to be a leader and be strong within their position.

Do you have offices outside of Missouri?
In addition to the 200 employees we have in this office, we have 150 independent sales reps. We have a Dallas office for the sales manager who calls on Michael’s and we’re opening one in Minneapolis across the street from Target’s headquarters.

You handle all of the design work out of this office. How about the manufacturing?
We have some items printed locally, and some imported from China. We do some light manufacturing work like assembling picture frames and we put together some album kits here too.

What’s the most surprising thing you’ve learned about running this company?
When we started this business, I had this perception that the large companies that already existed in this industry were somehow special because they were big and had longevity. And, what I’ve learned is that if you are innovative and you move quickly on your ideas, you can actually out-maneuver the bigger, more-established companies.

What do you think is the primary reason for your rapid growth?
We built our scrapbooking business through collections. We don’t just offer paper, stickers or the books. You can actually purchase a scrapbooking kit that is themed and color-coordinated and includes everything you need to make a beautiful scrapbook. We also offer free idea booklets that the retailers display at the point of purchase. So we tried to do something very different than what was already out there.

What is your vision for K&Company’s future?
While people refer to us as a scrapbooking company, we are really a design company. We can design anything. We are looking to diversify into other types of products in the craft industry.

Secondly, in 2003, we saw the need to protect our K&Company brand which is offered in the more high-end stores. The scrapbook industry is growing leaps and bounds, but now it’s starting to plateau. We know the growth for us is in the mass channels. So, we started a new brand called Marcella by K which we primarily sell in Target stores. It’s not totally exclusive, but they do receive a six-month exclusive on new offerings. We also developed Daisy Hill which is exclusive for Wal-Mart. This allows us to sell to the biggest retailers in the world and keep them both happy. This strategy has really helped our growth.

What is a typical day like for you here at K&Company?
My day is a lot different than it was five years ago because we’ve built the infrastructure up in such a way that I don’t have to wear so many hats. My day primarily consists of working with my design team.

I have 25 designers and full time artists that work here. We have strategy meetings with designers, the marketing department and also I attend sales and operations meetings just so I can stay apprised of what’s going on in those areas. There was a time, where I was the sales manager, the operations manager and everything else so things have really changed. I still work closely with our sales managers and do go on sales calls made to our larger accounts---primarily when it has to do with presenting creative.

Do you have a mentor?
I have had three important mentors in my life. One would be my mother who was an artist herself. I grew up in a very creative environment. In business, I had two but they probably wouldn’t even know that. The first is Eric Douglas with the Sunflower Group and I learned a lot from him particularly that it’s not enough for something to look pretty, it also needs to function. And, then I also learned a lot from Steve Nelson regarding creative.

What do you do to bring balance to your life?
I love what I do here, so it’s hard to break away from that. Outside of work, though, I enjoy antique collecting and interior design. We’re building a vacation home in South Carolina and I am enjoying working on that.

What advice do you have for those just starting their careers?
Take your first position for what you are going to learn and not necessarily for what it pays.

What would you tell those interested in starting their own business?
If you’re going to start your own business, make sure it’s something that you can truly be passionate about because the venture can be all-consuming. So, make sure you pursue a field that genuinely interests you.