Art Project Launches Multimillion-Dollar Biz

Sometimes it's still hard for me to believe that what began as a high school
art project has become my own multimillion-dollar business.

I created a pair of ceramic sandals adorned with a variety of beach-inspired,
plastic objects that covered the straps. My teacher entered my Florida
flip-flops in a national competition--where they fared poorly because they were
considered a mixed media, not a pure ceramic project. Although the judges did
not like them, every woman who saw them displayed in my parents' home fell in
love with the sandals and wanted a pair. Everyone was disappointed to learn they
were not functional.

Recognizing the excitement they created, I began experimenting with placing
whimsical buttons on basic flip-flops. After becoming frustrated with the glued
buttons continually falling off the straps, I stumbled upon the concept of using
Velcro to place different straps on the same shoe. I began making prototypes for
friends and family, one of whom was impressed with the novelty of my idea. He
suggested I check to see if this idea had been patented. Amazingly enough, no
one had ever applied for a patent for an interchangeable strap on a flip-flop
using Velcro. Thus, SwitchFlops were born.

While waiting for my patent to be approved, I designed many straps with
different buttons and carried them around in a book. I continually looked for
new ribbon designs and matched them with buttons in unique combinations. I would
show them to anyone who was interested and offer to name a strap after that
person. To this day, I label all my shoe styles and straps with a woman's name.

I had no difficulty creating new strap ideas, but I did have a problem
finding someone to manufacture my shoes. After several manufacturers turned me
down, I changed course. Friends introduced me to someone who helped me find a
Chinese sandal maker. My family and I ventured to Ningbo, China, where we
visited a huge factory with modern, safe machinery whose owners were interested
in taking on a small startup company. The company agreed to manufacture for us
if I would begin with an order for 5,000 shoes and 4,500 straps.

Finding a way to match shoe sizes and strap sizes that fit correctly was a
long and difficult process. This was new territory for both the manufacturer and
me. More than a year after my trip to China and many prototypes later, I finally
received the first shipment of shoes and straps.

There were initial problems with quality control--we had to inspect every
single shoe and strap. My family and I worked on weekends and stayed late every
night re-sewing straps and sometimes buttons, cutting unnecessary threads, then
re-packaging everything. We even enlisted two of my mom's friends for quality
control. After this experience, I made sure that quality control became part of
the production process.

I was overwhelmed with many business questions I had never encountered as an
art history major, but I was fortunate to have my mother as a partner. Her
organizational skills and business savvy complemented my left-brain talents. It
seemed like there was a new crisis every day: There were problems with sales,
shipping and information systems. The demand for shoes outpaced the manpower we
had to ship the product. We got more and more backed up each day, upsetting our
customers. The company was also too big for the QuickBooks program we were
using. The system froze all the time, and even the QuickBooks experts could not
help us. But through sheer tenacity, we overcame all the obstacles in our path.
We progressively moved from a beginning rental garage to a second facility and
then to a 2,500-square-foot warehouse, which we had to air condition to survive
the Florida summer. It seemed like we were moving our inventory every other
month.

I was fortunate to receive immediate recognition for my novel product, which
débuted at the Surf Expo in Orlando. I entered a competition for new companies
and won a free booth in the launch section that showcased new products. That's
where I attracted my first customers. I also was approached by multiple rep
groups, one of which I chose to help distribute my product. My shoes spread
rapidly in gift shops throughout the southeastern states. My company had the
good problem of trying to keep up with an exponential demand for our product. I
started with a single black flip-flop and 13 different straps, and within a year
I was able to expand the line to three different styles of shoes in several
colors and 50 straps.

Rapid growth was accompanied by several challenges. It was difficult to find
experienced personnel. Since all of my designs were new, it has hard to predict
how many of each strap to order. Some sold out immediately but others sold more
slowly, leaving excess inventory. It was difficult to manage the warehouse
because I was offering so many different shoes and straps in multiple sizes. The
company outgrew its initial computer system. It was difficult to provide
adequate customer service when product was constantly out of stock and shipping
was running behind. My mother and I came to realize that we needed to bring in
professional managerial talent to continue my company's momentum.

Through my future father-in-law, I was introduced to the man who would help
take my company to the next level. Jeffrey Davidson had an excellent resume and
seemed larger than life when I first met him. He is a hyperkinetic and
enthusiastic businessman with whom I connected instantly. He agreed to
immediately start managing my company if I would agree to eventually move the
business close to where he lives in New Jersey. To help catch up with our
explosive growth, he instituted a second shift for shipping our product. He
negotiated better contracts to save us money and began hiring a new, more
experienced staff that would transition with us to our new location. My life
began to decompress.

The move to New Jersey was accomplished, and I began commuting from Florida.
My original SwitchFlops business has blossomed into an entire line of Lindsay
Phillips-branded products. Our newest product line includes an array of
interchangeable shoes as well as a fun and colorful line of scarves and
handbags. We've seen sales grow explosively from $700,000 in 2007 to
approximately $17 million in 2009. We are on track to reach about $27 million
this year.

We could not have achieved this success without the support of our
customers--more than 4,000 specialty boutiques nationwide, many of which carry
the full Lindsay Phillips line. We put out two wholesale catalogs a year and
work with a national firm to sell our line to specialty boutiques. We offer
product assortments to make the decision process easier for our customers, but
stores can also order individual items. The product mix varies from store to
store. We try to be flexible and easy to work with. It's all about customer
service and making our stores happy.

With determination, hard work and plenty of help from others, my business
continues to thrive. Everywhere I go, I see people wearing my product.

It has been an incredible experience so far. An overnight success who has
been nine years in the making, I often reflect on Thomas Edison's line: "Genius
is 1 percent inspiration and 99 percent perspiration."

Lindsay Phillips is the inspiration and founding force behind
SwitchFlops. Her
footwear concept evolved from a high school art project and has grown into a
multimillion-dollar brand. A Florida native, Lindsay still lives in the sunshine
state but spends much of her time commuting to her corporate office in New
Jersey and traveling to promote her namesake brand.

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